Do you want to start a private flight company? If yes, here is a complete guide to starting a private jet rental business with no money and no experience .
Okay, so we’ve provided you with an in-depth sample private jet charter business plan template. We also take it further by analyzing and writing a sample private charter marketing plan backed by actionable guerilla marketing ideas for private charter businesses. In this article, we will consider all the requirements for starting a private charter business. So put on your entrepreneur hat and let’s get started.
Why Start a Private Aircraft Rental Company?
One of the companies that many rich people and big investors are turning to now and smiling at the bank with the private charter business. However, it would be very necessary to really know what the private jet charter business really is and how one can get on with getting started.
It is very necessary that you analyze the existing private charter inside and outside your area. Know how many there are and know their strengths and weaknesses. Knowing the weaknesses of existing private jet charter companies means that you could learn from their mistakes and, in turn, find a better and more preferred private jet charter company, free from the mistakes and weaknesses of others.
Private Jet Charter, as the name implies, is a company that offers private jets for charter. This type of company is such that it requires the effort of more than one person and it is worth noting that this business is a very lucrative type of business.
So if you have done the required feasibility studies and market research, then you may want to venture into this business. If you have been toying with setting up your own private jet company, but don’t know how, then you should consider reading this article; it will surely give you the necessary direction.
Starting a Private Charter Company A Complete Guide
- Industry overview
Private charter companies basically provide air transportation services on an irregular or unscheduled basis for passengers and cargo; It is also known as a charter agreement. Private jet companies give their customers the space to fly wherever they want (in terms of destination and airport) and whenever they want, unlike commercial airlines that operate fixed destination and timetables. It is important to note that private charter companies also offer scenic tours and tourism services.
A detailed study of the charter industry shows that after a period of low business sentiment and declining disposable income, the profit generated by establishments in the industry is expected to grow moderately. Of course, strong competition from the scheduled air transport market and high operating costs will continue to pose a great threat to private charter companies. However, increased disposable income and corporate profits will help drive demand.
The charter industry will continue to experience growth in all parts of the world, especially in developed countries such as the United States of America, Canada, the United Kingdom, Germany, Australia, South Korea, Japan, China and others.
Interesting statistics on the private charter industry
Statistics say that in the United States of America alone, there are about 21,177 licensed and registered charter companies that are scattered across the country and are responsible for employing approximately 55,020 employees.
The industry raises a sum of $ 20 billion annually with a projected annual growth rate of 1.8 percent between 2011 and 2016. The organization with the most market available in the industry is Atlas Air Worldwide Holdings.
A report recently published by IBISWorld shows that the high regulatory barriers to entry into this industry ensure the safety of staff and clients; however, the stringency of many regulations and the ever-evolving nature of such legislation prohibit market entry. A new entrant must pass a review by the Federal Aviation Administration before they are allowed to operate (see Regulation section).
This certification process can take between 18 and 24 months, depending on the size of the operation, and the oversight of ever-increasing government regulations can affect the 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 companies claim that, despite the fact that the business is capital intensive and the risk involved is high, it is in fact a prosperous and profitable commercial company for high-end entrepreneurs. requires professionalism and a good understanding of how the private jet charter and aviation industry works on a global platform. In addition, you would need to obtain the required certifications and license and also meet the expected standard for such a business before you are 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 psychographic makeup of those who require the services of a private jet company is not restricted to individuals and corporate organizations in their immediate community or state, but affects individuals and corporate organizations that can afford private jet charter services. This is because operating a private flight business is a global business, therefore it is an advantage to get customers from all over the world.
So if you are looking to define the demographics of your private airline company, then you should do it all encompassing. It should include business-oriented individuals, celebrities, public figures, religious leaders, senior government officials, investors, and corporate organizations within and outside of the United States.
List of Niche Ideas Within the Private Flight Industry You May Specialize in
Most private charter flights tend to provide a wide range of services in relation to charter flights, so it seems that there are no niche areas in the industry, but on the other hand, some private private flight companies may decide to specialize. in some key areas or specific areas such as:
- National passenger rental services
- International passenger rental services
- Transportation of perishable products
- Transportation of non-perishable products
- Tourism services
- Specialized flight services
The level of competition in the private charter industry
The level of competition in the private charter industry does not depend in any way on the location of the business, as most private jets Charter companies can operate from anywhere in the world and still compete effectively in the private charter industry. .
When it comes to private charter services, distance is never a barrier when competing for clients, especially international clients. What most clients (individual and corporate clients want is a safe and comfortable flight, therefore, they are ready to hire the services of a private charter company regardless of the part of the country in which they operate, as long as have a good track record and can deliver excellent services.
But in addition, there are several private jet charter companies spread all over the U.S. So if you choose to start your own private charter company in the U.S., you will definitely face tougher competition not just from private charters in the U.S. United, but also worldwide, especially if you choose to specialize in international business men and women services and corporate organization. In addition, there are larger private charter companies that determine trends in the industry and you must be ready to compete with them for clients.
List of well-known brands in the private charter industry
In every industry, there are always brands that perform better or are considered better by customers and the general public than others. Some of these brands are those that have been in the industry for a long time and are known for that, while others are better known for how they treat their customers.
These are some of the main private flight companies / brands in the United States of America and also in the world;
- Air Partner
- Berry Aviation
- BH Air
- Bulgarian air chart
- 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 the private charter company, you just have to get your feasibility studies and market research right before you venture into business. It is good to mention that the private charter service business is not for newbies; It is for professionals who have successfully honed in in the aviation industry over the years or for large investors.
Starting this type of business definitely involves raising a lot of capital. If you are already a wealthy person, this might not be a problem. On the contrary, if you cannot, you may consider drawing the resources of family and friends. Depending on the scale you want to start on, you may need up to thousands of dollars and even millions to eliminate this.
You are expected to hire experts to assist you with a comprehensive economic analysis and profitability of the businesses within the location where you intend to launch the business. If you get your economic and cost analysis just before you start the business, you may not have to linger long before breaking even.
Starting your private jet charter business from scratch instead of 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 instead of starting from scratch. Even though the franchise from a private jet rental company is expensive to buy, it will definitely pay you off in the long run.
But if you really want to build your own brand, having proven your worth in the aviation industry and other related large investment firms, then you may want to start your own private charter from scratch.
The truth is, it will pay you in the long run to start your private charter company from scratch. Starting from scratch will give you the opportunity to conduct a thorough market study and feasibility studies before choosing a place to start your business.
Please note that most of the great and successful private jet private craft started from scratch and they were able to build a strong business brand, It takes dedication, hard work and determination to achieve business success and of course you can build your own private flight company to become a successful brand with corporate and individual clients from all over the United States and other countries. of the world.
Possible Threats and Challenges You Will Face When Starting a Private Jet Rental Services Business
If you decide to start your own private jet charter company today, one of the main challenges you are likely to face is the presence of well established private charter companies and also commercial airline companies offering the same services that you intend to offer. The only way to avoid this challenge is to create your own market.
Some other threats that you are likely to face as a private charter company operating in the United States are unfavorable government policies, the arrival of a competitor within your operating location, and global economic downturn that generally affects purchasing / spending power. There is almost nothing you can do about these threats other than be optimistic that things will continue to work out for your good.
Starting a private charter company Legal matters
- The best legal entity to use in a private charter business
When considering starting a private charter service company, the legal entity you choose will go a long way in determining how big the business can grow; Some private charter service companies design their businesses and services for the regional / community market, some for the national market, while others for the international market.
Generally, you have the option of choosing a general partnership or limited liability company that is commonly called an LLC for a business, such as a private airline company. Generally, the general partnership should have been the ideal business structure for a small-scale private charter service company, especially if you are just starting out with moderate starting capital.
But people prefer a limited liability company for obvious reasons. In fact, if your intention is to grow the business and have clients, both corporate and individual, from all over the United States of America and other countries around the world, then choosing a general partnership is not an option for you. Limited Liability Company, LLC will reduce it for you.
For example, creating an LLC protects you from personal liability. If something goes wrong with the business, only the money you invested in the limited liability company will be at risk – not for general partnerships. Limited liability companies are simpler and more flexible to operate and do not need a board of directors, shareholders’ meetings, and other administrative formalities.
These are some of the factors to consider before choosing a legal entity for your private company. charter service company; limitation of personal liability, ease of transfer, admission of new owners, expectation of investors and, of course, taxes.
If you take the time to critically study the various legal entities that you will use for your private charter service business, you will accept that limited liability company; An LLC is the most suitable. You can start this type of business as a limited liability company (LLC) and in the future convert it to a ‘C’ corporation or an ‘S’ corporation, especially when you plan to go public.
Upgrading to either the ‘C’ corporation or the ‘S’ corporation will give you the opportunity to grow your private charter service company to compete with the major players in the industry; You will be able to generate capital from venture capital companies, you will enjoy a separate tax structure and you will be able to easily transfer ownership of the company; you will enjoy flexibility in ownership and management structures.
Catchy Business Name Ideas Suitable for a Private Private Jet Charter Service Company
Generally, when it comes to choosing a name for a business, you are expected to be creative because whatever name you choose for your business will go a long way toward creating a perception of what the business stands for. It is generally the norm for people to follow the trend in the industry from which they intend to operate when naming their business.
If you are considering starting your own private jet rental service company, here are some catchy names 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 most countries in the world, you cannot operate a business without having some of the basic insurance policy coverages required by the industry you want to operate from. Therefore, it is imperative to create a budget for insurance policy coverages and perhaps consulting an insurance broker for guidance in choosing the best and most appropriate insurance policies for your private charter company.
These are some of the basic insurance policy covers that you should consider purchasing if you want to start your own private jet charter company in the United States of America;
- General insurance
- Risk insurance
- Credit insurance
- Deposit insurance
- Financial reinsurance
- Mortgage Insurance for Lenders
- Health insurance
- Liability insurance
- Workers compensation
- Disability insurance for general expenses
- Business owner policy group insurance
- Payment protection insurance
Intellectual property / trademark protection
If you are considering starting your own private charter service company, you generally may not have any need to apply for intellectual property / trademark protection. This is so because the nature of the business makes it possible for you to run the business successfully without having any reason to challenge anyone in court for illegal use of your company’s intellectual property.
But if you only want to protect your company logo and other documents or software that are unique to you or even jingles and media production concepts, you can apply for intellectual property protection. If you want to register your trademark, you are expected to start the process by filing an application with the USPTO. Final approval of your trademark is subject to attorney review as required by the USPTO.
Is professional certification required to start a private private jet charter company?
In addition to the safety and affordability of your private jet company, professional certification is one of the main reasons most private jet service companies stand out. If you want to make an impact in the private charter services industry, you must work towards acquiring all the necessary certifications in your area of expertise.
You are strongly encouraged to seek professional certifications; demonstrate your commitment to the business. These are some of the certifications you can achieve if you want to run your own private charter service company;
- Air Operator Certificate
- Pilot license and certification
- Air Operator Certification 14 CFR Part 121
- Air Operator and Operator Certification 14 CFR Part 135
Keep in mind that the higher your qualification and experience (experience), the easier it is for you to attract high-profile clients.
List of Legal Documents You Need to Run a Private Jet Rental Service Company
The essence of having the necessary documentation before starting a business in the United States of America cannot be overstated, especially a company such as a private charter service company. It is a fact that you cannot successfully run any business in the United States without proper documentation. If you do, it won’t be 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 charter service company in the United States of America;
- Certificate of incorporation
- Business license and certification
- Commercial plan
- Nondisclosure agreement
- Employment Agreement (Offer Letters)
- Operating Agreement for LLCs
- Insurance policy
- Consultation of contractual documents
- Apostille (for those who intend to operate beyond the United States of America)
- Company statutes
- Insurance policy
- Memorandum of Understanding (MoU)
Financing Your Private Jet Rental Company
Starting a private jet charter company is a capital intensive business, therefore entrepreneurs willing to start businesses make sure to increase the required startup capital from all available legal means.
Without a doubt when it comes to financing a business, one of the first things and perhaps the main factor that you should consider is writing a good business plan. If you have a good and workable business plan document, you may not have to struggle before convincing your bank, investors, and friends to invest in your business.
Here are some of the options you can explore when looking for seed capital for your private jet charter service company;
- Raising money from personal savings and the sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Loan application from your bank / banks
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source of soft loans from your family and friends
Choosing a suitable location for your private charter company
Choosing a location for a private charter service company can be in two phases. First of all, you must be located in a city that has an airport and you are expected to pay for the parking space at the airport (hanger). In the same way, you are expected to secure the administrative office in a conspicuous and busy location.
In fact, places have a great influence on the success of private charter service companies. If you have taken the time to study the private charter service company, you will find that private charter service companies are willing to pay expensive rents to stay in a busy airport and business district for their administrative office; a place where business and financial activities are at their peak.
So if you are looking for a location for your private jet charter service company, make sure it is a location located in a business district of your city, a location that is visible and easily accessible. Of course, you don’t want to locate this type of business on the outskirts of town.
Your clients should be able to drive and locate your office with little or no difficulty. Sellers should also be able to easily locate their office when they have to submit their bids / proposals, documents or for background checks, et al.
Starting a private charter company Technical staff details
On average, no special technology or equipment is needed to run this type of business, except for private jets and software applications. So too, you will definitely need computers / laptops, internet facilities, telephone, fax machine, and office furniture (chairs, tables, and shelves) among others, and all of these can be used fairly. Please note that the airport authority provides the necessary aviation technology.
When it comes to choosing between renting or leasing an office space, the size of the private jet charter service company you want to build and your entire budget for the business should influence your choice. standard private jet charter company, then you should consider the option of leasing a facility for your office; When you lease, you can work with long-term planning, structuring and expansion.
Regarding the number of employees you are expected to start the business with, you will need to consider your finances before making the decision.On average, you would need an Executive Director or President (you can fill this position), an Administrator and Human Resources 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.
In addition, you would need a minimum of 10 to 20 key staff members to effectively run a medium but standard scale private private service company. Keep in mind that there will be times when you are expected to do your best to hire experts to help you handle some high-profile clients, especially from large corporations. If you are just starting out, you may not have the financial capacity or business structure required to retain all the professionals who are expected to work with you.
The service delivery process involved in a private jet charter service company
On average, the way private jet rental service companies work varies from company to company. , but ideally, a private jet charter service company is expected to hire mostly highly qualified pilots, get their private jets for charter, and then once a customer books their jet, take them to the destination. In most cases, it is generally from here to there.
It is important to state that a private charter service company can decide to improvise or adopt any business process and structure that guarantees a good return on investment (ROI), efficiency and flexibility; The above mentioned cum business services process is not stone based.
Starting a Private Charter Company The Marketing Plan
- Marketing ideas and strategies
As a private jet charter service company, you would have to prove yourself over and over again before attracting high-profile clients. So, if you have plans to start your own private charter service company, it will pay you to first build a successful career in the private aviation services industry.
Individuals and organizations will hire their private jets if they know they are going to get them safely to their destination.
So, when you are writing your marketing plans and strategies for your private jet charter service business, be sure to create a compelling personal and company profile. In addition to your qualifications and experience, it is important to clearly establish in practical terms what you have been able to achieve in the past when it comes to private charter services and the organizations and public figures who have chartered your private jets in the past. This will help increase your chances in the market when looking for clients.
These are some of the platforms you can use to market your private jet charter service company;
- Present your business by sending cover letters along with your brochure to all corporate organizations, households, and international business community in the United States.
- Advertise your business in relevant aviation magazines, radio stations, and television stations (be available for aviation-related talk shows and interactive sessions on television and radio)
- List your business in local directories / yellow pages
- Attend international aviation exhibitions, seminars and trade shows, etc.
- Create different packages for different categories of clients to work with their budgets
- Take advantage of the Internet to promote your business (when you blog regularly on key topics related to your business, the people who consider you an expert in the field)
- Join local chambers of commerce and industries around you with the primary goal of networking and marketing your services; you will likely get referrals from such networks.
- Hire the services of marketing executives and business developers to conduct direct marketing
Strategies to Boost Your Private Jet Company’s Brand Awareness and Create Your Corporate Identity
If you are in business and do not have the deliberate intention of increasing your brand awareness and communicating your corporate identity, then you must be ready to take on what society portrays as your business. One of the secrets of large corporations is that they are willing to spend fortunes year after year to increase their brand awareness and continue to communicate their corporate identity the way they want people to perceive it.
If your intention of starting a private jet rental service company is to grow the business beyond the city from which you are going to operate to become a national and international brand, then you must be ready to spend money on promoting and advertising your brand.
When promoting your brand and corporate identity, you should take advantage of print and electronic media and also social media (Internet). In fact, it is profitable to use the Internet and social media platforms to promote your brands, it is also quite effective and wide-ranging.
Another strategy is to sponsor relevant community shows, TV and radio shows, advertise your business in relevant magazines and newspapers. Below are the platforms you can leverage to boost your brand and promote and advertise your business;
- Place ads in aviation magazines and newspapers, radio stations, and related TV stations.
- Encourage the use of word-of-mouth advertising from your loyal customers.
- Take advantage of internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote your business.
- Make sure to place your banners and billboards in strategic positions throughout your city.
- Get in touch with corporate organizations, households and the international business community, among others, by calling them and informing them about your private jet charter services.
- Advertise your business on your official website and employ strategies that will help you get traffic to the site
- Please mark all your private jets and official cars and make sure all your staff members and management personnel wear your branded shirt or cap at regular intervals.