Owning a jet

Owner-charter revenue

Owner-charter revenue is the income an owner earns by allowing a management company to charter the aircraft to third parties when the owner is not flying. Typical arrangements pay the owner 80–90% of the hourly charter rate less direct operating costs, which in practice leaves a contribution of $1,000–$3,000 per hour toward fixed costs. Two to three hundred charter hours a year can offset a meaningful share of crew salaries, hangarage and insurance, but it will not make a jet profitable, and it adds cycles, wear and scheduling friction. Owners who need the aircraft at short notice or care about a pristine cabin often decide the revenue is not worth it.

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