Do you want to start a private jet charter company? If YES, here is a complete guide to starting a private jet charter business with NO money and NO experience.
Okay, so we have provided you an in-depth sample private jet charter business plan template. We also took it further by analyzing and drafting a sample private jet charter marketing plan backed up by actionable guerrilla marketing ideas for private jet charter businesses. In this article, we will be considering all the requirements for starting a private jet charter business. So put on your entrepreneurial hat and let’s proceed.
Table of Content
- Why Start a Private Jet Charter Company?
- Starting a Private Jet Charter Company – Market Research and Feasibility Studies
- Starting a Private Jet Charter Company – Legal Matters
- Is Professional Certification Needed to Run a Starting a Private Jet Charter Company?
- Starting a Private Jet Charter Company – Technical & Manpower Details
- Starting a Private Jet Charter Company – The Marketing Plan
Why Start a Private Jet Charter Company?
One of the businesses that a lot of rich folks and big time investors are turning to now and are smiling to the bank with is the private jet charter business. Nonetheless, it would be very needful to really know what private jet charter business really is and how one may possibly go ahead with kick starting it.
It is very needful that you analyze the existing private jet charter in and outside of your area. Know how many there are as well as know their strengths and weaknesses. Knowing the weaknesses of the existing private jet charter companies mean that you would be able to learn from their mistakes and in turn come up with a better and more preferred private jet charter company devoid of the mistakes and weaknesses of others.
Private jet charter as the name implies is a company that put up private jets for charter. This kind of venture is such that needs the effort of more than one person and it is worthy to note that this business is a very lucrative kind of business.
So, if you have done the required feasibility studies and market research, then you might want to venture into this business. If you have been tinkering with starting your own private jet charter company, but do not know how to go about it, then you should consider going through this article; it will surely give you the needed direction.
Starting a Private Jet Charter Company – A Complete Guide
- Industry Overview
Private jet charter companies basically provide air transport services on an irregular or nonscheduled basis for passengers and cargo; it is also referred to as a charter arrangement. Private jet companies give their clients the room to fly wherever they want (in terms of destination and airport) and when they want, as opposed to commercial airlines that operate fixed schedule of destinations and times. It is important to state that private jet charter companies also offer scenic tours and sightseeing services.
A close study of the charter flights industry shows that after a period of low business sentiment and decreased disposable income, the profit generated by establishments in the industry is expected to grow moderately. Of course, strong competition from the scheduled air transportation market and high operating costs will continue to pose a big threat to private jet charter companies. Nevertheless, rising disposable income and corporate profit will help boost demand.
The Charter Flights industry will continue to experience growth in all parts of the world especially in developed countries such as united states of America, Canada, United Kingdom, Germany, Australia, South Korea, Japan, China et al.
Interesting Statistics About the Private Jet Charter Industry
Statistics has it that in the United States of America alone, there are about 21,177 licensed and registered Charter Flights Companies scattered all across the length and breadth of the country and they are responsible for employing about 55,020 employees.
The industry rakes in a whooping sum of $20 billion annually with an annual growth rate projected at 1.8 percent within 2011 and 2016. The organization with the lion share of the available market in the industry is Atlas Air Worldwide Holdings.
A report recently published by IBISWorld shows that the high regulatory barriers to entry in this industry ensures staff and customer safety; however, the stringency of many regulations and the constantly evolving nature of such legislation are prohibitive of market entry. A new entrant must pass a review conducted by the Federal Aviation Administration before it is allowed to operate (see Regulation section).
This certification process can take 18 to 24 months to complete depending on the size of the operation. In addition, oversight of significant and increasing government regulations may affect a company’s ability to increase or maintain the level of air operations if licenses are suspended or revoked.
Some of the factors that encourage entrepreneurs to start their own private jet charter businesses are that despite the fact that the business is capital intensive and the risk involved is high, it is indeed a thriving and profitable business venture for high end entrepreneurs.
Over and above, starting a private jet charter company requires professionalism and good grasp of how private jet charter and the aviation industry works on a global platform. Besides, you would need to get the required certifications and license and also meet the standard expected for such business before you can be allowed to start a private jet charter company in the United States; and the industry is heavily regulated.
Starting a Private Jet Charter Company – Market Research and Feasibility Studies
- Demographics and Psychographics
The demographic and psychographics composition of those who require the services of a private jet charter company is not restricted to people and corporate organizations in your immediate community or state, but it cuts across people and corporate organizations who can afford private jet charter services from all over the world. This is so because operating a private jet charter business is a worldwide business hence the leverage to get clients from all across the globe.
So, if you are looking towards defining the demographics for your private jet charter company, then you should make it all encompassing. It should include business oriented people, celebrities, public figures, religious leaders, top government officials, investors and corporate organization within and outside the United States.
List of Niche ideas Within the Private Jet Charter Industry That You Can Specialize in
Most private jet charter tends to provide a wide range of services as it relates to charter flight, that is why it seems that there are no niche areas in the industry. But on the other hand, some private jet charter companies may decide to major in some key areas or niche areas such as;
- Domestic passenger charter services
- International passenger charter services
- Transportation of perishable goods
- Transportation of nonperishable goods
- Sightseeing services
- Specialty flying services
The Level of Competition in the Private Jet Charter Industry
The level of competition in the private jet charter industry does not in any way depend on the location of the business since most private jet charter companies can operate from any part of the world and still effectively compete in the private jet charter industry.
When it comes to private jet charter services, distance is never a barrier when competing for clients especially international clients. What most clients (individual and corporate clients want is safe and comfortable flight, hence they are ready to hire the services of a private jet charter company no matter the part of the country they operate from as long as they have good track record and can deliver excellent services.
But over and above, there are several private jet charter companies scattered all around the United States. So, if you choose to start your own private jet charter company in the United States, you will definitely meet stiffer competitions not only amongst private jet charter in the United States, but also all over the globe especially if you choose to specialize in servicing international business men and women and corporate organization. Besides, there are larger private jet charter companies that determine the trends in the industry and you should be ready to compete with them for clients.
List of Well Known Brands in the Private Jet Charter Industry
In every industry, there are always brands who perform better or are better regarded by customers and the general public than the others. Some of these brands are those that have been in the industry for a long while and so are known for that, while others are best known for how they treat their patrons.
These are some of the leading private jet charter companies/brands in the United States of America and also in the globe;
- Air Partner
- Berry Aviation
- BH Air
- Bulgarian Air Charter
- Choice Airways
- Eastern Air Lines
- Elite Airways
- Freebird Airlines
- Grossmann Jet Service
- Jet Aviation
- Million Air
- National Airlines
- Omni Aviation
- Qatar Amiri Flight
- Regal Aviation
- Reliant Air
- Rizon Jet
- Vision Air International
- World Atlantic Airlines
When it comes to starting a business-like private jet charter company, you just have to get your feasibility studies and market research right before venturing into the business. It is good to mention that private jet charter services business is not for rookies; it is for professionals who have successfully cut their teeth in the aviation industry over the years or big – time investors.
Starting this kind of business definitely entails that you raise plenty of capital. If you are already a wealthy person, this might not be an issue. Conversely, if you cannot, you may want to consider pulling the resources from family and friends. Depending on the scale at which you want to start from, you might require as much as multiple thousands of dollars and even millions to strike this off.
You will be expected to hire experts that will help you with comprehensive economic analysis and the profitability of the businesses within the location that you intend launching the business. If you get your economic and cost analysis right before launching the business, you may not have to stay the long before you break even.
Starting Your Private Jet Charter Company from the Scratch versus Buying a Franchise
When it comes to starting a business of this nature, it will pay you to buy the franchise of a successful private jet charter company/brand as against starting from the scratch. Even though it is expensive buying the franchise of a private jet charter company, but it will definitely pay you in the long run.
But if you truly want to build your own brand, after you must have proved your worth in the aviation industry and other related big – time investment businesses, then you might just want to start your own private jet charter from the scratch.
The truth is that it will pay you in the long run to start your private jet charter company from the scratch. Starting from the scratch will afford you the opportunity to conduct thorough market survey and feasibility studies before choosing a location to launch the business.
Please note that most of the big and successful private jet charter around started from the scratch and they were able to build a solid business brand. It takes dedication, hard work and determination to achieve business success and of course you can build your own private jet charter company to become a successful brand with corporate and individual clients from all across the length and breadth of the United States of America and other countries of the world.
Possible Threats and Challenges You Will Face When Starting a Private Jet Charter Services Business
If you decide to start your own private jet charter company today, one of the major challenges you are likely going to face is the presence of well – established private jet charter companies and also commercial flight companies who are offering same services that you intend offering. The only way to avoid this challenge is to create your own market.
Some other threats that you are likely going to face as a private jet charter company operating in the United States are unfavorable government policies, the arrival of a competitor within your location of operation and global economic downturn which usually affects purchasing/spending power. There is hardly anything you can do as regards these threats other than to be optimistic that things will continue to work for your good.
Starting a Private Jet Charter Company – Legal Matters
- Best legal entity to use for a private charter business
When considering starting a private jet charter services company, the legal entity you choose will go a long way to determine how big the business can grow; some private jet charter service companies design their business and services for regional/community market, some for national market, while others for international market.
Generally, you have the option of either choosing a general partnership, or limited liability company which is commonly called an LLC for a business such as a private jet charter company. Ordinarily, general partnership should have been the ideal business structure for a small scale private jet charter services company especially if you are just starting out with a moderate start-up capital.
But people prefer limited liability Company for obvious reasons. As a matter of fact, if your intention is to grow the business and have clients, both corporate and individual, from all across the United States of America and other countries of the world, then choosing general partnership is not an option for you. Limited Liability Company, LLC will cut it for you.
For example, Setting up an LLC protects you from personal liability. If anything goes wrong in the business, it is only the money that you invested into the limited liability company that will be at risk. It is not so for general partnerships. Limited liability companies are simpler and more flexible to operate and you don’t need board of directors, shareholders meetings and other managerial formalities.
These are some of the factors you should consider before choosing a legal entity for your private jet charter services company; limitation of personal liability, ease of transferability, admission of new owners, investors’ expectation and of course taxes.
If you take your time to critically study the various legal entities to use for your private jet charter services company, you will agree that limited liability company; an LLC is most suitable. You can start this type of business as limited liability company (LLC) and in future convert it to a ‘C’ corporation or an ‘S’ corporation especially when you have the plans of going public.
Upgrading to a ‘C’ corporation or ‘S’ corporation will give you the opportunity to grow your private jet charter services company so as to compete with major players in the industry; you will be able to generate capital from venture capital firms, you will enjoy separate tax structure, and you can easily transfer ownership of the company; you will enjoy flexibility in ownership and in your management structures.
Catchy Business Name Ideas Suitable for a Private Jet Charter Services Company
Generally, when it comes to choosing a name for a business, it is expected that you should be creative because whatever name you choose for your business will go a long way to create a perception of what the business represents. Usually it is the norm for people to follow the trend in the industry they intend operating from when naming their business.
If you are considering starting your own private jet charter services company, here are some catchy names that you can choose from;
- Alps Private Charter Jets, LLC
- Silver Private Jets, Inc.
- Kentucky Bellerose Air, LLC
- Eagles Wings Jets, Inc.
- Blue Air Services, LLC
- Currie Slope Private Jet Services Group
- James Capstone Private Jets, LLC
- Phil Garry Air Ltd.
- McQueen Private Jet Charter, Inc.
- Shannon Crafts Private Jets Charter, Inc.
- Shavonne Stevens Airline, Inc.
- Zest Private Jet Charter, Inc.
In the United States and in most countries of the world, you can’t operate a business without having some of the basic insurance policy covers that are required by the industry you want to operate from. So, it is imperative to create a budget for insurance policy covers and perhaps consult an insurance broker to guide you in choosing the best and most appropriate insurance policies for your private jet charter services company.
Here are some of the basic insurance policy covers that you should consider purchasing if you want to start your own private jet charter services company in the United States of America;
- General insurance
- Risk Insurance
- Credit insurance
- Deposit insurance
- Financial reinsurance
- Lenders mortgage insurance
- Health insurance
- Liability insurance
- Workers Compensation
- Overhead expense disability insurance
- Business owner’s policy group insurance
- Payment protection insurance
Intellectual Property Protection/Trademark
If you are considering starting your own private jet charter services company, usually you may not have any need to file for intellectual property protection/trademark. This is so because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
But if you just want to protect your company’s logo and other documents or software that are unique to you or even jingles and media production concepts, then you can go ahead to file for intellectual property protection. If you want to register your trademark, you are expected to begin the process by filing an application with the USPTO. The final approval of your trademark is subjected to the review of attorneys as required by USPTO.
Is Professional Certification Needed to Run a Starting a Private Jet Charter Company?
Aside from safety and affordability of your private jet charter company, professional certification is one of the main reasons why most private jet charter services company stand out. If you want to make impact in the private jet charter services industry, you should work towards acquiring all the needed certifications in your area of specialization.
You are strongly encouraged to pursue professional certifications; it will go a long way to show your commitment towards the business. These are some of the certifications you can work towards achieving if you want to run your own private jet charter services company;
- Air operator’s certificate
- Pilot licensing and certification
- 14 CFR Part 121 Air Carrier Certification
- 14 CFR Part 135 Air Carrier and Operator Certification
Please note that the higher your qualifications and experience (expertise), the easier it is for you to attract high – profile clients.
List of Legal Documents You Need to Run a Private Jet Charter Services Company
The essence of having the necessary documentation in place before launching a business in the United States of America cannot be overemphasized especially a business like private jet charter services company. It is a fact that you cannot successfully run any business in the United States without the proper documentations. If you do, it won’t be too long before the long arm of the law catches up with you.
These are some of the basic legal documents that you are expected to have in place if you want to legally run your own private jet charter services company in the United States of America;
- Certificate of Incorporation
- Business License and Certification
- Business Plan
- Non – disclosure Agreement
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Consulting contract documents
- Apostille (for those who intend operating beyond the United States of America)
- Company Bylaws
- Insurance Policy
- Memorandum of Understanding (MoU)
Financing Your Private Jet Charter Company
Starting a private jet charter company is indeed a capital intensive business hence entrepreneurs willing to start the business ensure that they raise the required start-up capital from all available legal means.
No doubt when it comes to financing a business, one of the first things and perhaps the major factor that you should consider is to write a good business plan. If you have a good and workable business plan document in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.
Here are some of the options you can explore when sourcing for start–up capital for your private jet charter services company;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source for soft loans from your family members and your friends
Choosing a Suitable Location for your Private Jet Charter Company
Choosing a location for a private jet charter services company can be in two phases. Firstly it must be located in a city that has airport and you are expected to pay for parking space in the airport (hanger). So also, you are expected to secure administrative office in a visible and busy location.
Indeed, locations have great influence on the success of private jet charter services companies. If you have taken your time to study the private jet charter services company, you will realize that private jet charter services companies are willing to pay expensive rents in order to stay in a busy airport and business district for their administrative office; a place where business activities and financial activities are at its peak.
So, if you are looking for a location for your private jet charter services company, ensure that it is a place that is located in a business district in your city, a place that is visible and easily accessible. Of course, you would not want to locate this type of business in the outskirts of town.
Your clients should be able to drive down and locate your office with little or no difficulty. Vendors also should be able to easily locate your office when they have to come submit their bid/proposals, documents or for background checks et al.
Starting a Private Jet Charter Company – Technical & Manpower Details
On the average, there are no special technology or equipment needed to run this type of business except for private jets and software applications. So also, you will definitely need computers/laptops, internet facility, telephone, fax machine and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten as fairly used. Please note that the needed aviation technology is provided by the airport authority.
When it comes to choosing between renting and leasing an office space, the size of the private jet charter services company you want to build, and your entire budget for the business should influence your choice. If you have enough capital to run a standard private jet charter services company, then you should consider the option of leasing a facility for your office; when you lease, you will be able to work with long term planning, structuring and expansion.
As regards the number of employees that you are expected to kick start the business with, you would need to consider your finance before making the decision. Averagely, you would need a Chief Executive Officer or President (you can occupy this role), an Admin and Human Resource Manager, Pilots, Cabin Crew Members, Chief Financial Officer (CFO)/Chief Accounting Officer (CAO), Business Development Executive/Marketing Executive and Customer Service Officer or Front Desk Officer.
Over and above, you would need a minimum of 10 to 20 key staff to effectively run a medium scale but standard private jet charter services company. Please note that there will be times when you are expected to go out of your way to hire experts to help you handle some high profile clients especially from big corporations. If you are just starting out you may not have the financial capacity or required business structure to retain all the professionals that are expected to work with you.
The Service Delivery Process Involved in a Private Jet Charter Services Company
On the average, the way private jet charter services companies work varies from one company to another company, but ideally, a private jet charter services company is expected to first and foremost hire highly skilled pilots, get their private jets available for charter and then once a client books their jet, they fly the clients to the destination. In most cases, it is usually to and fro.
It is important to state that a private jet charter services company may decide to improvise or adopt any business process and structure that will guarantee them good return on investment (ROI) efficiency and flexibility; the above stated business cum services process is not cast on stone.
Starting a Private Jet Charter Company – The Marketing Plan
- Marketing ideas and strategies
As a private jet charter services company, you would have to prove your worth over and over again before attracting high profile clients. So, if you have plans to start your own private jet charter services company, it will pay you to first build a successful career in the private jet charter services cum aviation services industry.
People and organizations will hire your private jets if they know that they are going to take them safely to their destination.
So, when you are drafting your marketing plans and strategies for your private jet charter services company, make sure that you create a compelling personal and company’s profile. Aside from your qualifications and experience, it is important to clearly state in practical terms what you have been able to achieve in time past as it relates to private jet charter services and the organizations and public figures that have hired your private jets in time past. This will help boost your chances in the market place when sourcing for clients.
Here are some of the platforms you can utilize to market your private jet charter services company;
- Introduce your business by sending introductory letters alongside your brochure to all the corporate organizations, households and international business community in the United States
- Advertise your business in relevant aviation magazines, radio stations and TV stations (make yourself available for aviation related talk shows and interactive sessions on TV and Radios)
- List your business on local directories/yellow pages
- Attend international aviation expos, seminars, and business fairs et al
- Create different packages for different categories of clients in order to work with their budgets
- Leverage on the internet to promote your business (when you blog regularly on key issues as it relates to your business, people who consider you an expert in the field)
- Join local chambers of commerce and industries around you with the main aim of networking and marketing your services; you are likely going to get referrals from such networks.
- Engage the services of marketing executives and business developers to carry out direct marketing
Strategies to Boost Your Private Jet Company Brand Awareness and Create Your Corporate Identity
If you are in business and you are not deliberate about boosting you brand awareness and communicating your corporate identity, then you should be ready to take on whatever the society portrays your business to be. One of the secrets of larger corporations is that they are willing to spend fortunes year in and year out to boost their brand awareness and to continue to communicate their corporate identity the way they want people to perceive them to be.
If your intention of starting a private jet charter services company is to grow the business beyond the city where you are going to be operating from to become a national and international brand, then you must be ready to spend money on promotion and advertisement of your brand.
In promoting your brand and corporate identity, you should leverage on both print and electronic media and also social media (the internet). As a matter of fact, it is cost effective to use the internet and social media platforms to promote your brands, besides it is pretty much effective and wide reaching.
Another strategy is to sponsor relevant community based programs, TV and radio programs, advertise your business in relevant magazines and newspapers. Below are the platforms you can leverage on to boost your brand and to promote and advertise your business;
- Place adverts on aviation magazines and related newspapers, radio stations and TV stations.
- Encourage the use of word of mouth publicity from your loyal customers.
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote your business.
- Ensure that you position your banners and billboards in strategic positions all around your city.
- Contact corporate organizations, households and international business community et al by calling them up and informing them of your private jet charter services.
- Advertise your business in your official website and employ strategies that will help you pull traffic to the site
- Brand all your private jets and official cars and ensure that all your staff members and management staff wear your branded shirt or cap at regular intervals.
- How to Start a Zumba Studio Class Business in 20 Steps - August 4, 2020
- How to Start a Car Title Loan Business in 20 Steps - August 4, 2020
- How to Register and Start a Business in Saskatchewan - August 2, 2020