For a long time, flying private meant either owning a jet yourself or chartering one on an hourly basis. While these traditional methods are still available and common among private flyers, more flexible avenues allow individuals and corporations to enjoy private jet travel.
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One way of doing that is through private jet memberships. Private jet memberships operate on a deposit drawdown. That means a customer would put down an initial deposit to get access to private jet flights and begin consuming that amount without the hassle of purchasing or chartering an entire jet.
Customers purchase specific flight hours for a set deposit to enter a private jet membership program. The initial deposit is drawn down as flight hours are consumed, almost like a gift card. Private jet members receive reduced rates for flying private compared to standard charter rates. Membership programs also include a range of benefits, including preferred rates, no blackout dates, fleet choices, shorter booking windows, and exclusive offers with partner programs.
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Private jet memberships can be classified in various formats. From private charter memberships and ownership programs to jet cards, private jet management companies use all sorts of names for them. Volato, a private jet management company, states that there are over 50 different private aviation memberships, essentially offering greater flexibility and benefits to private flyers. The most common types of membership models and benefits are discussed here.
Private jet memberships
This is one of the most common membership models, which requires the customer to make an upfront deposit, which is drawn down as flights are taken. Such membership programs allow customers to lock in specific capped rates based on the type, size, and model of the aircraft. Notably, jet management companies offer a range of aircraft in each category, essentially allowing members to choose from.
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This trusted model ensures better rates than the market rates for charters. The membership also comes with additional benefits, including advanced quoting, access to a larger fleet, small booking windows, partner benefits, and others. It is noteworthy that specific benefits vary depending on the company and its offerings.
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Private jet memberships generally offer a similar level of comfort and amenities as flying first class in a commercial setting but with added flexibility and convenience. Private jet membership costs anywhere between $25,000 and $500,000, depending on the membership tier and the benefits that come with it. Each membership tier has its own fee structure and initial investment requirements. According to Volato,
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"Private jet memberships are transforming elite travel. Membership models are designed for those who value the convenience and flexibility of flying private but prefer not to take on the administration required for jet ownership. While each program varies, membership offers preferred rates, fleet access, and other benefits that just aren't available on the open market."
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Posts Private jet card memberships
Private jet cards are generally structured based on the block of flight hours rather than a fixed deposit. Customers purchase predetermined blocks of flight hours (generally in increments of 25 hours) and receive a proffered rate that is locked in at the time of purchase. From that point on, flying hours are drawn down as flights are completed. It is like a pay-per-use card, which must be pre-filled with specific block hours.
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Jet card memberships come with a long list of items that may or may not be in the program scope. For example, many jet card companies implement blackout dates and other restrictions on their offerings. On the other hand, some cards may offer preferred rates for flights outside of the program scope, offering additional benefits to its customers.
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Posts Fractional ownership programs
A fractional ownership program, as the name suggests, aligns closely with jet ownership. However, it is often grouped with private jet memberships because it allows customers to purchase a fractional share of the jet with allotted annual flight hours. Rather than taking complete ownership of the jet and bearing capital and operating costs, fractional ownership programs break the upfront costs, liabilities, and operating costs into fractions, typically starting as small as 1/16th share.
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The program provider manages the logistics of aircraft ownership while holding each fractional owner responsible for their costs. The cost of entry into the program is generally higher, but the recurring costs are nominal based on the usage. Private jet membership companies recommend Such programs to customers (individuals or corporations) to opt for this program only if the annual use is 100 hours or more.
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Posts How do these membership programs compare?
A large number of companies in the United States and globally offer various types of membership programs. Volato quickly compares these programs based on investment, program structure, fleet, and benefits.
Private Jet MembershipPrivate Jet CardFractional Ownership Initial InvestmentVaries (Typically starts around $50,000)Varies (Typically starts around $25,000)Varies Key FeaturesCapped rates Advanced quoting Exclusive partner offersPre-set rate for a block of hoursPreferred rates Revenue sharing opportunities Tax benefits Program StructureDeposit drawn down as you flyPre-purchased blocks of hoursJet ownership based on share size and managed under an aircraft management company Fleet AccessUsually limited to a specific fleet or jet classUsually limited to a specific fleet or jet classLimited to the specific aircraft type, although may include access to a larger fleet BenefitsLess administration, preferential rates, and flexibilityConvenience, predictability in pricing, sometimes with blackout dates or restrictionsCombines ownership perks with reduced management responsibilities ✕ Remove Ads
According to Netlets,
"With private jet membership programs, travelers pay a fee to access aircraft and services. For decades, NetJets has provided the ultimate private jet membership solutions, specializing in fractional jet ownership, private jet leases, and jet card programs. Our exclusive membership unlocks access to the world's largest fleet of private jets all maintained and operated by NetJets to ensure safe, reliable luxury travel."
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