True to the results thereof, companies like Netjets profit heavily from this industry, making billions worth of profits every year. Some of these companies are owned through shareholding, yet a share might be worth a person’s 10 year salary. Multi-billion dollar companies like these are owned by very influential and very powerful personalities in the state. If a person is determined to pay for a seat in such a set up as a private jet, he should be willing to part with roughly around $150,400,000 for one quarter of a share of the ticket of travel from say New York to London. The good thing about this travel is that the passenger will move non-stop from one place to the other, at speeds up to around 580 km/hr.
Some of its Challenges
Some of the challenges that are facing the industry right now are:
Owner-versus-rent debate: Air chartering has become a booming business, not for the companies that own the planes, but for the companies that use the planes as taxis. With such high returns from the customers these create wrangles between the two entities. Operational differences to who should take care of the various technicalities have for a long time been a challenge to the industry.
Security issues: Air chattering is not subjected to as much security as does public air travel. The fact that it is privately conducted gives in to various security issues. Unlike public air travel, the process of boarding a plane is not centralized to a particular location. It is easier for anyone to carry around anything from one place to the other.
Either way, traveling by air privately is a pleasurable experience, which anyone will want to be involved in.
So much has been changing about the leasing business in the airline industry. Since the conception of the chartering business, the idea of borrowing planes for private and public air transportation make this business a glorified one among the many businesses involved in flying. Leases are given to companies which require extra aircraft services yet do not have the capacity to buy entire ownership of the plane. The business has therefore categorized the idea of leasing according to what kind of services that are shared between the owner of the planes and the lessee.
Wet Lease:
The idea of wet leasing is one that has revolutionalized over the years. Taking into consideration the amount of service that are provided by the owning company, the wet lease ranges from the owner company providing fuel costs to as much as providing everything except for cabin crew. The bigger difference comes in on the time that the lease takes to expire. In this case, the lease takes as little as two years to expire. ÂÂ
Damp Lease:
For this kind of lease, a similarity is seen to the wet lease. In fact, most of what happens in the damp lease is usually reflected in the damp lease. Most companies even use these two terms interchangeably. The greatness distinction between this type of leasing and the wet leasing is the fact that for this particular one, the cabin crew is provided and financed by the lessee with a condition. This condition usually is that the lessor provides the safety and emergency training necessary for the crew to maintain the airplane’s condition.
Dry Damping:
Unlike both of the above type of leasing measures that are provide, this type of lease is often given to heavier investors in the economy. Such businesses that involve the government, banks and other big companies hire planes without the provision of the cabin crew, insurance cover, maintenance crew or other necessities involved in flying. It takes a longer time (more than 2years) to lease out such jets. Circumstances like political circumstances, location and weather changes make it necessary for this kind of leasing to take place.