Private aircraft management is when an aircraft owner outsources the day-to-day running of their aircraft to a team of specialists. This article explains how aircraft management works, how it relates to charter management and what affects the cost.

What you need to know about private aircraft management

An aircraft management company coordinates the operational and technical side of an aircraft on the owner’s behalf. Crew, maintenance planning, flight operations and supplier relationships are all handled by one team.

The owner remains in control of all key decisions concerning the aircraft. The management company handles the coordination, so the owner does not have to deal with every supplier separately.

The alternative is self management, where the owner takes care of insurance, fuel contracts, regulatory filings and operational issues independently. Whether that path makes financial sense tends to come down to flight hours, headcount and how much time an owner can give to the aircraft, as explored in self management vs hiring a management company.

A brief guide to the aircraft management process

The process starts with an assessment of the aircraft type, how often it is expected to fly and how much support the owner needs. The management company then presents a personalised proposal setting out its services and fee structure. Once the owner agrees, the company takes over the coordination of the aircraft.

From that point, the owner deals with one accountable team rather than managing relationships with crew, engineers, vendors and accountants separately.

Aviation professionals coordinating aircraft management operations in a hangar

The work usually involves four specific elements:

  • Crew: pilots and cabin crew are selected for their skills and qualifications, then matched to the aircraft type, cabin configuration and the owner’s requirements.
  • Maintenance oversight: the management company coordinates and oversees private jet maintenance carried out by qualified service providers. It plans ahead so that scheduled work is completed on time, which protects both asset value and resale position.
  • Flight coordination: the management company works with the operator, the crew and the relevant service providers to prepare for each trip.
  • Financial reporting: the owner receives monthly reports outlining operating costs and other expenses.

The management team also liaises with vendors, negotiates fuel prices and coordinates insurance, hangarage and the other services the aircraft needs. Our aircraft management service provides 24/7 support and oversight for every flight.

How aircraft management and charter management fit together

The two services are related, but they do different jobs. Aircraft management keeps the aircraft running properly. Charter management uses the time the aircraft would otherwise spend on the ground to generate charter revenue that offsets part of the cost of ownership.

Charter management is optional. The owner sets the aircraft’s availability, private use always comes first and every proposed charter trip is presented to the owner for approval. To fly commercial charter flights, the aircraft must be registered under an Air Operator Certificate (AOC), issued and overseen by the relevant civil aviation authority.

We generally recommend charter management for underutilised aircraft registered under an AOC, typically where the owner uses the aircraft for around 150 to 250 hours a year. Each aircraft is assessed individually, based on its type, age, condition, maintenance status and operator certification.

What private jet management costs include

There is no single price for private jet management. The total depends on the aircraft type, how much it flies and the level of support the owner needs. Costs generally fall into two parts: the management fee and direct operating costs. The management agreement sets out which services are included in the fee and which are billed separately.

Management fee

This is what the owner pays for the management service itself. Depending on the agreement, it may cover owner support, operational oversight, maintenance planning, reporting and supplier coordination.

The fee can be fixed at an agreed monthly amount or structured around the owner’s requirements. A fixed fee makes this part of the cost easier to plan for, although total annual costs still change with operating expenses.

Direct operating costs

These are usually charged separately from the management fee. They include fuel, maintenance, crew, handling, permits, navigation charges, insurance, hangarage and catering. The exact items billed separately depend on the management agreement, with providers increasingly aligning to recognised safety standards such as IS-BAO for operational discipline.

Operating costs vary with the hours flown, the routes, the aircraft’s requirements and the maintenance needed during the year.

How to choose the right aircraft management support

The decision depends on how often you use your aircraft and how much support you need. If you fly regularly, aircraft management on its own may be enough. If the aircraft is underutilised, charter management may help offset part of the cost of ownership through charter revenue.

Whichever route you choose, the value lies in clarity. One accountable team and a clear breakdown of fees and operating costs mean you can see exactly what you are paying for and why.

Book a consultation with the RightJet team to discuss your aircraft and receive a tailored proposal. Learn more about our aircraft management services and request a consultation to understand how we can support your aircraft.

FAQs

Q: What does an aircraft management company do?

A: It coordinates the day-to-day running of an aircraft on the owner’s behalf, including crew, maintenance planning, flight coordination and financial reporting. The owner deals with one team instead of managing each supplier separately.

Q: Do I keep control of my aircraft under a management agreement?

A: Yes. You remain in control of all key decisions about your aircraft. If the aircraft is also under charter management, every proposed charter trip is presented to you for approval.

Q: Is the aircraft management fee fixed?

A: It can be. The management fee may be agreed as a fixed monthly amount or structured around the owner’s requirements. Fuel, maintenance, crew and other operating costs are usually charged separately.

Q: Does an aircraft management company carry out maintenance?

A: No. RightJet coordinates and oversees maintenance through qualified service providers. It also plans ahead so that scheduled maintenance is completed on time.

Q: What is the difference between aircraft management and self-management?

A: With aircraft management, a specialist team coordinates crew, maintenance planning, suppliers and reporting on the owner’s behalf. With self-management, the owner handles insurance, fuel contracts, regulatory filings and operational issues directly.

Q: How much does private jet management cost annually?

A: Annual costs include the management fee and applicable operating expenses. The total depends on the aircraft, its usage, the services included in the agreement and the support required. A tailored cost estimate is needed for an accurate figure.