Private jets offer a number of advantages over commercial airlines, such as unmatched convenience, world-class luxury, and complete privacy. Hiring a private jet also allows you to customize your flight schedule and itinerary. Before hiring a jet plane, however, you need to be aware of the commonly-used terms that matter, to make an informed decision. This blog post discusses ten such terms you ought to know, when hiring private charter jets. Take a look.
1. Federal Excise Tax
Charter providers collect FET and remit it to the IRS. Customers are required to pay 7.5 percent of the the total charges of domestic flight excluding the catering, ground transportation, and other services provided by the third party. In addition, if the destination is 225 miles from the US border, you need to pay FET on International flights.
2. Ramp and Landing fees
Ramp fee is the amount paid by charter operators for using a private jet terminal or FBO (fixed base operator), whereas landing fee is the amount charged by the airport operator for funding airport maintenance and operations. There are many charter operators that use the terms interchangeably or may group the fees into one category.
3. Hourly Rate
The hourly cost to charter a plane is usually the largest contributor in your private jet charter quote. The hourly rate is either based on the actual air flight or block time. Though the actual flight time starts when the aircraft takes off and ends when it lands, block time starts when the aircraft starts from the ramp and ends when it is parked.
4. Fuel Surcharge
Many charter companies charge an additional fee to combat the ever-increasing jet fuel prices. The surcharges were quite common back in the late 2000s, when the price of oil was on higher side. The surcharge rate can make a lot of difference in the hourly quotes of the chartered flight. Make sure that you include the fuel surcharge in the hourly rates when comparing the costs of renting a charter flight.
5. Repositioning Cost
Another important factor that you need to consider is the repositioning cost. The cost of moving the aircraft from home base to the location from where the flight will take off is the repositioning cost. You can reduce the repositioning cost by opting for charter flights that are based near your point of departure.
6. Overnight Fee
If a pilot has to wait overnight for a customer, the operator generally charges an overnight fee somewhere between $650-$750 to cover their lodging expenses, including meals, hotel rooms and car rentals. Therefore, if you are planning a trip that requires you to stay overnight and you want to use the same jet for the return flight, look out for this element in the quotes you receive.
7. Daily Minimum
Some charter flight operators charge a daily minimum flight time charge for the days their aircraft stays away from the home base, even if the customer does not use it while it’s away. Daily minimum is usually billed at 1 to 2 hours at the hourly charter rate of the aircraft.
8. Segment Fee
The charter provider collects a segment fee on domestic flights, which can be on per person or per leg basis. The fee is remitted by the charter provider to the IRS. Currently, the segment fee amounts to approximately $4 per passenger per leg. Segment fees, however, don’t apply if you are flying to or from an airport located in a designated rural area.
9. Handling Fee
If you are traveling to an international destination, you need to pay a handling fee. A local handler can help flight members with the clearance procedure in the destinations you visit and save a lot of time for you. Handlers can also recommend reputable local companies for catering and ground transportation services.
10. International Segment Fees
If your flight crosses a U.S border, you need to pay an international segment fee. Currently, the charter provider generally charges approximately $17.70 per passenger, per leg as international segment fees. If you are being asked to pay anything significantly larger than that, it is a matter of concern and should be discussed with the provider.
These are some of the important terms that you need to know when hiring a private charter jet. The ten terms will help you to differentiate between the quotes that you receive when you hire your next private charter flight. If you plan to rent a private charter flight or buy jet planes for sale, get in touch with Leviate Air. We will help you out with understanding the quotes and the expenses you need to incur when buying or hiring a private charter jet. To learn more about our services, call us at (877) 720-2770 or fill out our contact form, and one of our representatives will get back to you, shortly.