Industry Magazine Desert Jet Oasis Magazine Fall 2017 | Page 25

EARNING REVENUE
AIRCRAFT
OWNERSHIP:
EARNING
REVENUE
EARNING revenue from your aircraft
when it is not being utilized can make
strong fiscal sense. Desert Jet offers
several ways for you to utilize your aircraft
to earn revenue. From traditional charter
revenue programs to innovative lease
programs, our revenue programs are
personalized to meet your exact needs. is an hourly dry lease where the aircraft
owner is paid an hourly flat rate for use
of the aircraft. The lessee pays for costs
such as fuel, pilot salaries and training, and
aircraft cleaning. This simple arrangement
is the ideal solution that earns revenue
without incurring a lot of additional costs.
Charter Management Another optimal revenue program
involves placing underutilized aircraft
into a full-time lease arrangement. The
lessee pays for all operational costs
of the aircraft, such as maintenance,
engine reserves, pilots, hangar costs,
and insurance, as well as a fixed monthly
amount to the owner, normally equivalent
to roughly .8 percent to 1 percent of the
aircraft’s value. This is a great way to
eliminate the costs incurred when an
aircraft is placed for sale and not being
utilized. This option also keeps the aircraft
in an airworthy status with no expenditure
required by the aircraft owner.
These are just a few ways that the savvy
aircraft owner can realize revenue from
an aircraft’s operations. Because there
are many complicated FAA regulations
and IRS implications involved in revenue-
generating activities involving aircraft,
it’s important to place your aircraft with
a company that is familiar with all of the
different options available.
Traditional charter is a great choice for
those aircraft owners that employ a full-
time flight crew and have low-to-moderate
usage needs for their aircraft. Traditional
charter provides the aircraft owner with
a percentage of the revenue earned
(normally 85 percent) during each hour the
aircraft is flown in charter operations. This
revenue helps the aircraft owner offset
the fixed costs of ownership, such as the
salaries for the flight crew, insurance,
hangar costs, maintenance, and flight
training expenditures.
Hourly Lease Management
The traditional charter model doesn’t
work for everyone as not all aircraft
owners have a need to employ pilots. For
example, many aircraft owners are also
pilots and just fly themselves where they
need to go for business. For these owners,
using a traditional charter model means
employing pilots, an additional cost that
just doesn’t make sense. The ideal solution
Fleet Utilization Program
25
FACTS
• Desert Jet can assist you in
the acquisition of your own
aircraft.
• Aircraft ownership can
make financial sense when
compared to chartering an
aircraft over 100 hours per
year.
• Desert Jet provides a turn-
key management service
enabling aircraft owners
to shed themselves of
the headaches involved
in managing pilots,
maintenance schedules and
financial oversight.
• Charter revenue can offset
most, if not all, of the
costs involved in owning an
aircraft.