Aircraft management keeps an aircraft running. Charter management earns revenue from the aircraft when the owner is not using it. This article explains what each service covers, how they differ and how owners decide which one they need.

What aircraft management covers and how it supports aircraft owners

Aircraft management means a specialist company handles the day-to-day running of a privately owned aircraft on the owner’s behalf.

Its focus is on keeping the aircraft operationally and cost efficient. While a management company takes care of the complexities, the owner keeps full ownership and the final say on key decisions.

An aircraft management service normally covers four main areas:

Crew: pilots and cabin crew are selected for their qualifications and experience, matched to the aircraft type and the owner’s requirements.

Maintenance oversight: the management company plans and oversees the maintenance programme. The maintenance itself is carried out by qualified providers, with cost drivers explored in private jet maintenance

Flight operations: the management team arranges trips with the crew and the operator, with support available 24/7.

Financial reporting: owners receive monthly reports on the cost of operating and maintaining the aircraft, with additional reports available on request. The company also manages annual budgets with careful oversight. 

Good aircraft management also depends on skilled negotiation with fuel suppliers, maintenance providers, insurers, programs, hangar providers and ground handling companies. The aim is to control costs without compromising safety or service standards.

The key advantage for the owner is a single point of contact. The owner deals with one reliable team instead of many separate suppliers. Whether a dedicated team or self management works best for a particular owner is covered in self management vs hiring a management company.

How charter management helps aircraft owners earn revenue

Charter management has a more specific role. It manages charter flights on the aircraft when the owner is not using it. The revenue offsets part of the cost of owning the aircraft and makes use of hours it would otherwise spend on the ground.

The owner remains in control at all times. The owner decides when the aircraft is available and private use always takes priority over charter.

The charter management team finds charter clients, arranges charter schedules around the owner’s own plans and keeps the owner informed at every stage. Owners receive regular updates on charter activity, the revenue generated and how the aircraft is being used, which makes it easier to judge whether the charter is working for their aircraft.

At RightJet, every charter is confirmed with full prepayment before departure.

Ground crew preparing a private jet under an aircraft management agreement

A quick view of the key differences between both services

The two services are closely linked, but they differ in five clear ways:

Purpose: aircraft management takes care of the day-to-day running of the aircraft. Charter management focuses on generating revenue.

Scope: aircraft management covers crew, flight operations, maintenance oversight, financial reporting and owner support. Charter management covers promotion of the aircraft, coordination of charters and revenue reporting.

Who it suits: aircraft management suits any owner who wants their aircraft professionally managed. Charter management suits underutilised aircraft registered under an AOC.

Operating structure: to fly charter flights, the aircraft must be registered under an Air Operator Certificate (AOC), issued and overseen by the relevant civil aviation authority. By contrast, aircraft management on its own does not require one.

Effect on finances: aircraft management fees are a cost of ownership. Charter management generates revenue that offsets part of the cost of ownership.

How the two services work together

A common misconception is that owners must choose between aircraft management and charter management. In practice, owners can use aircraft management on its own and add charter management when it suits the aircraft.

The main benefit is working with one service provider like RightJet. The owner does not need one company to manage the aircraft and another to handle charter bookings, because one team does both, meeting international safety expectations including IS-BAO alignment.

It also keeps information in one place. The team that plans maintenance and manages the crew also knows when the aircraft is available for charter, so scheduling decisions are made with the full picture in view.

Which service suits your aircraft

Business travellers onboard a private jet during a charter flight

The answer depends on how the owner uses the aircraft.

If the owner flies often or places a high value on privacy, aircraft management on its own may be the better fit. In that case, the aircraft is likely to have little idle time available for charter.

If the aircraft spends long periods on the ground, charter management may be worth adding. We generally recommend it for underutilised aircraft registered under an AOC, typically where the owner uses the aircraft for around 150 to 250 hours a year.

There are no fixed rules that apply to every aircraft. Each one is assessed individually under RightJet’s aircraft management, based on its type, age, condition, maintenance status and operator certification.

The difference lies in purpose

The real difference between the two services is purpose, not process. Aircraft management saves the owner time and effort, while charter management, where it suits the aircraft, offsets part of the cost of ownership. Whichever an owner chooses, the same standards apply: clear reports, transparent costs and one team accountable for the outcome.

Book a consultation with the RightJet team to discuss your aircraft management goals and receive a personalised proposal. To speak with the team now, contact RightJet and we will be in touch.

FAQs

Q: What is the key difference between aircraft management and charter management?

A: Aircraft management covers the day-to-day running of an aircraft, including crew, maintenance oversight, flight operations and reporting. Charter management generates charter revenue when the owner is not using the aircraft. The two services can be used separately or together.

Q: Can I use aircraft management without charter management?

A: Yes. Aircraft management is a complete service on its own. Charter management is an optional addition for owners who want to offset part of the cost of ownership.

Q: Do I lose control of my aircraft if it is on charter?

A: No. The owner sets the aircraft’s availability and private use always comes first. Every proposed charter trip is presented to the owner for approval before it is confirmed.

Q: What do aircraft management services include?

A: They usually cover crew, maintenance oversight, flight operations coordination and financial reporting. The management company also negotiates with suppliers for fuel, maintenance, insurance, hangarage and ground handling.

Q: Does my aircraft need an AOC to charter?

A: Yes. Charter flights must be operated under the appropriate Air Operator Certificate (AOC). Aircraft management on its own does not require one.

Q: How much revenue can charter management generate?

A: Revenue depends on the aircraft type, its location, charter demand, the owner’s own use and the aircraft’s availability. For this reason, there is no fixed percentage that applies to every aircraft. Each aircraft’s earning potential is assessed individually.