How Charter Revenue Works

The economics of private aircraft ownership are straightforward: whether your jet flies 100 hours a year or 400 hours, the fixed costs remain largely the same. Crew salaries, hangar rent, insurance premiums, management fees, and scheduled maintenance accrue regardless of utilization. For the average aircraft owner who flies 200-400 hours annually, this means their aircraft sits idle for thousands of hours each year — representing a massive missed opportunity.

Plane Selection's charter revenue program transforms that idle time into a significant revenue stream. By placing your aircraft on our Part 135 (or equivalent) charter certificate, we make it available to our global network of vetted charter clients during periods when you are not using it. The revenue generated is shared transparently between you and the management company, with most owners receiving 85-90% of net charter revenue.

The fundamental principle is simple: your aircraft already incurs fixed costs whether it flies or not. Every charter hour generated during idle periods contributes directly to offsetting those costs, effectively reducing your net cost of ownership. For popular aircraft types with strong charter demand, owners routinely offset 40-70% of their annual fixed costs through charter revenue alone.

The Part 135 Charter Certificate

Revenue charter flights require operation under a commercial air carrier certificate — in the United States, this is FAR Part 135. Operating charter flights without proper certification is illegal, unsafe, and can result in severe penalties including aircraft seizure. When your aircraft is placed on Plane Selection's charter certificate, you benefit from:

• Legal compliance: All charter operations are conducted under our certificate with full regulatory oversight and documentation
• Safety standards: Our Part 135 operations exceed minimum regulatory requirements, with enhanced crew training, maintenance standards, and operational controls
• Insurance coverage: Charter operations are covered under our commercial liability insurance, providing appropriate coverage for revenue flights
• Operational infrastructure: Our flight dispatch, crew scheduling, and operational control systems support safe, efficient charter operations
• ARGUS/Wyvern ratings: Our safety ratings give charter brokers and clients confidence in the quality of our operations, driving demand for your aircraft

Revenue Models

We offer flexible charter revenue models tailored to each owner's preferences and risk tolerance:

Traditional Revenue Share

The most common arrangement, where charter revenue is shared between the owner and management company after deducting direct operating costs (fuel, landing fees, crew expenses, catering). The owner typically receives 85-90% of net revenue. This model provides maximum revenue potential with transparent cost accounting.

Guaranteed Revenue Program

For owners who prefer income predictability, we offer guaranteed minimum revenue programs on qualifying aircraft types. Under this model, you receive a guaranteed monthly payment regardless of actual charter activity, with additional revenue sharing above the guarantee threshold. This model provides income stability but may result in lower overall revenue compared to the traditional share model.

Dry Lease Arrangements

In certain situations, dry lease arrangements — where a third party leases the aircraft without crew — may offer advantageous economics. We facilitate and manage dry lease agreements with vetted lessees, ensuring proper documentation, insurance requirements, and aircraft return conditions are maintained.

Fleet Exposure and Marketing

Generating charter revenue requires connecting your aircraft with qualified charter buyers. Plane Selection exposes your aircraft to charter demand through multiple channels:

• Direct sales team: Our charter sales team actively markets available aircraft to our database of qualified charter clients
• Broker network: We maintain relationships with hundreds of charter brokers worldwide who bring client requests to our fleet
• Online marketplaces: Your aircraft is listed on major charter marketplaces and real-time availability platforms used by brokers and direct clients
• ARGUS/Wyvern certified: Our safety ratings qualify your aircraft for clients and corporations that require rated operators
• Repeat client cultivation: We build relationships with charter clients who prefer specific aircraft types, creating recurring demand for your aircraft

Owner-Controlled Scheduling

The most common concern among owners considering charter revenue is the fear of losing access to their own aircraft. Plane Selection addresses this definitively: you always come first. Our scheduling system is built on the following principles:

• Owner priority: Your travel plans take absolute precedence over charter bookings. You can block dates weeks or months in advance, or request your aircraft on short notice.
• Blackout dates: You can designate specific dates or periods when the aircraft is unavailable for charter — holidays, family events, planned trips, or any other reason.
• Trip-type restrictions: You control which types of charter trips your aircraft can accept. Some owners restrict charter to specific routes, trip lengths, or client types.
• Approval rights: Depending on your preference, you can review and approve each charter trip before it is confirmed, or authorize your management team to accept trips within defined parameters.
• Guaranteed return: Charter trips are scheduled to return your aircraft to its home base (or your specified location) with appropriate buffer time before your next planned use.

Revenue Projections by Aircraft Type

Charter revenue potential varies significantly by aircraft type, based on market demand, operating costs, and competitive positioning. The following projections are based on typical market conditions and assume the aircraft is made available for charter during all idle periods:

• Light Jets (Citation CJ3+, Phenom 300E): $200,000-$400,000 annual gross charter revenue, offsetting 30-50% of fixed costs
• Midsize Jets (Citation Latitude, Hawker 800XP): $400,000-$700,000 annual gross revenue, offsetting 40-55% of fixed costs
• Super-Midsize Jets (Challenger 350, Praetor 600): $600,000-$1,000,000 annual gross revenue, offsetting 45-60% of fixed costs
• Large-Cabin Jets (Challenger 650, Falcon 900): $800,000-$1,400,000 annual gross revenue, offsetting 50-65% of fixed costs
• Ultra-Long-Range Jets (Global 7500, G650ER): $1,200,000-$2,500,000 annual gross revenue, offsetting 50-70% of fixed costs

These figures are projections based on historical performance and current market conditions. Actual results depend on aircraft age and condition, home base location, owner availability allowance, market dynamics, and competitive positioning. We provide detailed, aircraft-specific revenue projections as part of our management proposal process.

Tax Benefits

Placing your aircraft on a charter certificate can provide significant tax advantages, though the specifics depend on your jurisdiction, ownership structure, and tax situation. Common benefits include:

• Depreciation benefits: Aircraft used in commercial operations may qualify for accelerated depreciation schedules, including bonus depreciation where applicable
• Operating expense deductions: Charter-related operating expenses may be deductible as business expenses
• Sales/use tax considerations: In some jurisdictions, aircraft used primarily for commercial operations may qualify for sales tax exemptions or reduced rates
• VAT recovery: For European operations, charter activity may enable VAT recovery on acquisition costs and operating expenses

We strongly recommend consulting with an aviation tax specialist to understand the specific benefits available in your situation. Plane Selection works with leading aviation tax advisory firms and can provide referrals upon request.

Protecting Your Asset

Charter operations inevitably mean additional use of your aircraft by third parties. Plane Selection implements multiple safeguards to protect your asset:

• All charter clients are vetted and bound by our passenger agreement terms
• Charter-specific insurance coverage supplements your existing hull and liability policies
• Post-charter inspections document aircraft condition after each revenue flight
• Cabin cleaning and detailing after every charter trip
• Strict no-smoking, no-pets policies (unless you specify otherwise)
• Additional wear-and-tear provisions in the management agreement ensure fair compensation for charter-related usage