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Family Offices & The Private Jet REVOLUTION
Family office demand for private jet travel is higher than ever it has ever been. For years, factors such as airport congestion, poor airline service and lack of flexibility have led to a resurgence in private aviation. Now, with coronavirus fears fueling the demand for private jet aviation, carriers in the $10 billion+ industry are at 150%+ occupancy as family offices and others seek solutions for safe travel. Family Office Networks provides unparalleled access to private aviation companies, including member rates and priority to access flights as well as investment opportunities.
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When deciding on the optimal private jet solution for your family, it’s important to understand the options. First, a good rule of thumb for deciding between plane ownership vs. fractional ownership vs. jet card vs. aircraft charter is to figure out the number of hours your family spends flying per year. Here is a general rule of thumb:
1 to 150 hours – Charter/jet card service is ideal
150-300 hours – Fractional jet ownership relieves you of the hassles associated with owning a plane
300+ hours – Full plane ownership is your friend
Next, identify your reasons for wanting to fly private. If you’re seeking to reduce the stress of traveling - whether for business or pleasure - advantages of private aircraft ownership include flexibility, safety, security, comfort, timeliness, cleanliness, and includes tax benefits, such as depreciation.
If you prefer not to deal with the operational complexities and overhead required of owning a plane, you may want to opt for fractional jet ownership where crews and pilots are provided, operation and maintenance are taken care of, and flight operations are as simple as picking up a phone and providing the flight departure and destination cities to the managing company.
RICHARD KANE
Founder & CEO VeriJet
Families who prefer to start with minimal investment should consider a prepaid card, bought in 25-hour increments, that is redeemed to book a flight with as little as 24-hour notice. This is a cost-effective way to experience safe and luxurious private jet travel and is ideal for those wanting to experience private jet travel on a smaller scale. Another option is a charter jet and there are a variety of advantages for busy professionals to travel to multiple locations and still have the flexibility to return on the same day and sleep in your own bed.
“We help family offices who require specialized aircraft consultation when buying a new plane or selling their existing aircraft. There’s a growing need for this specialized knowledge and insights when family offices and flight departments invest in private aircraft as families do not always have the knowledge and system expertise that professional aviation companies have developed to manage the risks associated with private aviation activities. We help our customers make educated decisions. ”
Mark Connell
Owner East Coast Jet Center
PHOTO CREDITS : EAST COAST JET CENTER
PHOTO CREDITS : EAST COAST JET CENTER
Importantly, there are many tax advantages of private jet ownership and experts report that some family offices are not utilizing all eligible deductions simply because they are unaware. For example, operating costs are deductible, and there is Modified Accelerated Cost Recovery System (MACRS) Depreciation, and individual ownership can be a deduction if it is used for business reasons. There’s even a possibility of writing off 100% of the purchase price (bonus depreciation). Always make sure to consult with a professional prior to making such an investment.
One of the companies on Family Office Networks radar is East Coast Jet Center in South Florida, a private jet broker specializing in aircraft acquisitions, sales, avionics modifications management, comprehensive technical representation, aircraft maintenance management, import & export, and aircraft completions management for the family office industry.
“We help family offices who require specialized aircraft consultation when buying a new plane, leasing or selling their existing aircraft. There’s a growing need for this specialized knowledge and insights when family offices and flight departments invest in private aircraft as families do not always have the knowledge and system expertise that professional aviation companies have developed to
PHOTO CREDITS : VERIJET HOLDING COMPANY,LLC
manage the risks associated with private aviation activities. We help our customers make educated decisions,” said Owner Mark Connell.
Family Office Networks also works with a leading environmentally friendly offering called VeriJet that is doing its part to reduce the carbon footprint by operating a radically efficient new jet design saving one ton of CO2 per flight segment as compared to other light jets that burn 2-3x the amount of fuel. The company focuses on the short haul charter travel market, as defined by trips of 600 or less nautical miles, which represents a $7.5 billion opportunity as measured by fight hours. It has the right equipment for the mission with unmatched convenience, efficiency and price point. Further, Verijet will be rolling out biodiesel options with aircraft that are already approved to fly on four types of biodiesel.
“We‘re seeing an influx of travelers who need to travel but wish to bypass the contagions and inconveniences of the per seat or hub and spoke models. Business travelers who need to make quick trips from South Florida to Atlanta or Tallahassee and return same day as well as families seeking safe passage are best served by private travel. In today’s era of uncertainty, we’re well-positioned to help people and their pets get to their destinations faster, more safely and more cost effectively, while minimizing the carbon footprint,” said VeriJet CEO Richard Kane. “Importantly, we utilize the same UV-sterilization equipment used in ambulances whereby a box inside the jet sterilizes the plane to a medical level between flights and the entire plane is dedicated exclusively to your party. Safe, convenient, on demand travel.” with dependable and scalable sources of demand. VeriJet’s jet aircraft have a unique Safe Return capability that can auto land the jet without pilot assistance. VeriJet’s entire fleet has in integrated whole airframe parachute system in case of true emergency, and state of the art safety features unavailable with any other leading private jet carrier.
In keeping with the company’s commitment to social responsibility, Verijet supports programs such as EAA Young Eagles, Girl Venture, Women’s Air Race Classic, STEM, Aviation Merit Badges, and PBC Aviation Programs with the intent of making more pilots and giving kids choices. Verijet will donate empty legs to move an animal for adoption (Pilots and Paws) or a service dog for placement (New Horizons) or an honor flight for a serviceman. VeriJet’s goal is to have no fewer than 20 percent female pilots, three times the industry average. Importantly, Richard Kane serves on the board of the Lindbergh Foundation – pursuing a global program of radical decarbonization and noise reduction in aviation while showcasing breakthrough innovation. Erik Lindbergh serves on VeriJet’s board.
“Our advantage is four times the door to door speed, onethird of the carbon footprint, unprecedented safety and a fraction of the cost of typical charter,” Kane said.
