Pay It Forward

Jenny Southan investigates the pros and cons of prepaid private jet cards

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Joe is a Silicon Roundabout entrepreneur based in London. His new job as chief executive will see him travelling more for work, especially in the US. He’s happy to use commercial airlines to make transatlantic hops, but when it comes to domestic flights in America he is concerned that the hassle of using conventional carriers and airport security will be counterproductive.

In the US, if you fly more than 400 hours a year on a private jet, you’re better off buying your own aircraft, but Joe’s not going to be that guy. Instead, a business acquaintance of his has recommended a “jet card”, which means he can prepay for a block of hours or load up an account with credit to use as and when he likes on a predetermined aircraft of his choice.

If Joe decides this is right for him, he will require a chunk of cash upfront (this is not for travellers who prefer a pay-as-you-go approach to jet charter). The benefits of a subscription will mean he gets to lock in a fixed hourly rate (he only pays for scheduled flight time – not diversions, delays, fuel, landing fees, de-icing or aircraft positioning, for example). He has guaranteed availability, there are no peak-hour restrictions and the booking process is speedy.

Private jet cards represent 20-25 percent of charter revenue for boutique broker Skytime Jets, which launched in 2012. Some 60 percent of its business comes from Europe, 30 percent from the US and 10 percent from the Middle East and Asia.

James Shotton, its co-founder and director, says: “We work with individuals who appreciate that buying a private jet card is not the cheapest way to fly but who want very high quality, personalised service. Customers can either negotiate on every single charter trip and have multiple conversations about price, or have a fixed price agreed at the beginning so they know exactly what they are getting.”