Paying at the pump
I fully expect fractional jet ownership to simplify my life on many fronts, but there’s little doubt that working through one’s options is, at best, a little complicated. There are so many “layers” to fractional ownership, and so many contractual details. Take just one for example: fuel charges.I’m learning that there seem to be as many ways price fuel as there are fractional jet providers. Some use nationally published fuel rates, such as those you’ll find in aviation trade magazines. Other providers use different means to calculate fuel costs. For instance, some providers base it on their specific costs. This sounds fair, but there could be any host of circumstances which could “artificially” inflate the price above the going market costs, for instance: the number of planes that particular provider is flying and where their most popular destinations are located.
And remember it’s not only what the fuel costs, but how much of it is used. Lots of things can impact fuel burn: the type of aircraft, the weather as well as directions from air traffic control. Most notably, however, is speed. The faster the plane goes, the more fuel it burns. By getting to a destination faster, you use less of the time you have allotted to you, but you pay more for fuel. Many providers are open to the notion of you dictating whether the planes flies at normal speeds or at high speed. Though, again, lots of other factors can impact just how fast (or slow) you’ll arrive at your destination.
I found an interesting article on this and related topics from Commercial & Business Aviation on Docherty Aviation’s website. It even raises the issue of whether or not some providers aren’t generating additional profits via vague or questionable fuel billing practices. That’s not the kind of thing one likes to think about when preparing to make such a big investment, but certainly it’s better to know this now rather than later. As the saying goes: fortune favors the prepared mind.
