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Should You Use A Management Company?

Private Jet, Aircraft Management

Should You Use A Management Company?

There are many reasons why someone would use a Part 135 management company besides aviation expertise, but one advantage that is often overlooked is transfer of liability.  When your aircraft is on a charter certificate flying part 135, they have operational control and hold the majority of the risk.  If you are flying under Part 91, you as the owner are in control and ultimately hold the majority of the risk.  Some corporate flight departments also use management companies for this reason.  Below are other reasons that you may or may not have considered: 

Expertise and Experience: Aircraft management companies have extensive knowledge and experience in handling all aspects of aircraft operations. They have a team of aviation professionals who understand the intricacies of aircraft management, including regulatory compliance, maintenance, crew staffing and logistics.

Maintenance Oversight: Aircraft management companies handle all aspects of aircraft maintenance and ensure that the aircraft is kept in optimal condition. They have relationships with certified maintenance facilities and can schedule and oversee regular inspections, repairs, and upgrades, ensuring compliance with regulatory requirements.

Regulatory Compliance: Aviation regulations are complex and constantly evolving. Management companies stay updated on the latest regulations and ensure that the aircraft and its operations meet all necessary compliance requirements. This includes maintaining required documentation, managing flight crew qualifications and adhering to safety protocols.

Charter Revenue Generation: Many aircraft owners choose to offset the costs of aircraft ownership by placing their aircraft on a charter program. Management companies can handle all aspects of charter operations, including marketing, scheduling, and managing charter flights. They have access to a network of potential clients and can maximize revenue generation from charter operations.

Crew management: Finding and managing qualified flight crews can be challenging for individual aircraft owners. Aircraft management companies have access to a pool of experienced pilots and other crew members. They handle crew recruitment, training, scheduling and management, ensuring that the aircraft always has a competent and compliant crew.

Cost Savings: Aircraft management companies can help owners reduce costs by leveraging their industry connections and negotiating better deals on fuel, maintenance, insurance, and other operational expenses. They have established relationships with vendors and can often secure volume discounts that individual owners may not have access to.

Administrative Support: Managing an aircraft involves various administrative tasks, including flight planning, scheduling, accounting, and record keeping. Management companies provide comprehensive administrative support, handling these tasks efficiently and effectively. This allows owners to focus on other priorities while ensuring smooth aircraft operations.

Risk Management and Insurance: Aircraft management companies have expertise in risk management and can help owners navigate the complexities of aviation insurance. They can assess the owner’s insurance needs, recommend appropriate coverage options, and assist in obtaining the best insurance policies at competitive rates. They also provide guidance on risk mitigation strategies to minimize potential liabilities.

Operational Efficiency: Aircraft management companies have established systems and processes in place to ensure smooth and efficient aircraft operations. They handle flight planning, logistics, and coordination with airports and air traffic control, optimizing routes and schedules to minimize travel time and fuel consumption. This results in improved operational efficiency and cost savings for the owner.

Personalized Services and Concierge Support: Aircraft management companies often offer personalized services and concierge support to aircraft owners. This can include assistance with travel arrangements, catering services, ground transportation, and other personalized requests. It aims to provide a high level of customer service and ensure a seamless and enjoyable travel experience for the owner and their passengers.

The specific reasons for using an aircraft management company may vary depending on the owner’s individual needs, location, and aircraft type.  It is important for you to understand which of the above are the reasons for employing a management company.  Another article that you may find useful is one that was published in Business Jet Traveler and that is about the costs and challenges of Starting a Flight Department.

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