Jet cards – a happy medium between owning a plane and chartering for each trip – may seem like a useful shortcut, but with so many choices out there, things can get confusing and travel managers may not always be sure how to pick the best one. After all, with the wide range of available programs, understanding the different factors and pricing structures is essential to making an informed choice.

David McCown, Chapman Freeborn’s president of the Americas, notes there are a variety of features found in jet card/jet membership programs that distinguish them from traditional ad-hoc charter services. Most notably, he says, many jet membership programs are fixed, point-to-point hourly pricing on category-based fleet options, such as light, mid, super-mid and heavy jets.

“In this case, the programs will allow low initial entry buy-ins, such as 10 hours, or an amount, such as $50,000,” he says. “While this simplification (point-to-point, fixed pricing based with low minimum buy-in on a category) may be more straightforward to the buyer, it often is not the most cost-effective program vs. dynamic pricing.”

Dynamic pricing programs are a hybrid of an initial buy-in with hourly pricing based on actual market availability at time of booking the trip. The downside in this case can be variability in pricing on the same routing from one day to the next. “Additionally, a category-based program – for example, light, mid, super-mid, heavy – can be quite unsatisfactory to many users as there is a great variation in perceived value between different aircraft models in each category,” McCown says. “If this is a problem for a prospective buyer, the buyer should consider programs that use dynamic pricing for specific aircraft models.”

Traditional jet cards give the program guaranteed availability at fixed or capped hourly rates within a primary or extended service area so long as flights are booked a specified number of hours or days prior. This means you don’t have to get prices quoted for each trip.

“In essence, a jet card program operates like an exclusive prepaid card, allowing you to purchase a set number of flying hours up front and effectively have a fleet at your fingertips,” says Andrew Stevens, sales director at Air Partner JetCard UK. “Compared to on-demand private jet charters, jet cards are a more time-efficient way to charter, offering a streamlined booking service and access to premium terms that allow for more flexibility.”

There are also jet cards and memberships that use dynamic pricing – pricing each trip based on which airport the mission originates from and the airport of choice at the destination. “Like booking charter flights one-by-one, this means the provider has to account for repositioning flights,” explains Doug Gollan, president and editor-in-chief of Private Jet Card Comparisons, a buyer’s guide covering jet cards and memberships. “The benefit of these programs over booking charter flights one-by-one is usually discounts or flight credits, and sometimes recovery guarantees to get a replacement aircraft at your original price if the first aircraft or operator can’t perform the flight. With most ad hoc charter flights, you would need to get a requote, which at the last minute is usually higher.”

Other benefits of jet cards and memberships vary but in contrast to booking flights ad hoc can include the cost of de-icing, full catering, free WiFi, ground transportation, and the ability to use funds for additional flights.

Some jet cards enable you to upgrade or downgrade aircraft size based on the mission. However, how these changes are handled may differ. “Especially when looking at a first move into a program, one should make sure the contract and membership as a whole is stacked in your favour,” Stevens cautions. “Ensure that it’s flexible and allows you to control your own private flying without being penalized. It’s here that you begin to understand that each offering does differ, with some far more rigid than others.”

Flying Ahead 
Richard Zaher, CEO of Paramount Business Jets, notes that jet card programs simplify the booking process, saving time and money. “The number of hours or the amount of deposit depends on how often the client charters and how far they fly when they do,” he says. “Depending on the program, it’s important that there are no cancellation fees or monthly fees.”

Paramount’s clients can choose any size aircraft, anywhere in the world on short notice. Once the trip is booked, making changes to the itinerary must be approved by the operator.

Chapman Freeborn’s jet membership program offers additional services, including charter flight support, 4Air services (or carbon offsetting provision), and a 20 percent discount on all luxury car rental from Go Rentals.

“Additionally, with the program you no longer need to sign contracts; you are able to confirm a charter with a simple response to an e-mail,” says David Owens, vice president of business aviation for Chapman Freeborn’s jet membership program. “You’re less likely to lose aircraft availability while waiting for wire transfers, credit card payments or signing a contract. Finally, you receive the benefit of preferred cancellation terms on every charter.”

Dave Harvey, chief commercial officer of Wheels Up, notes when looking into a jet card program, fliers should consider the number and length of trips, as well as the predictability of travel over a typical 12-month period.

Harvey notes that Wheels Up Membership, also known as the “Join Up” program, provides consistent access, pricing and booking terms. On the other hand, he says traditional charter services like Wheels Up Charter, their “Fly Up” program, offer greater flexibility on a per-flight basis, with terms and pricing influenced by market conditions.

“With Wheels Up Membership, a small annual fee and pre-funded flight hours give you access to dynamic pricing options, broader global reach, and increased flexibility,” he says. Other features, he points out, include select guaranteed availability, and capped hourly rate price protection. “Most importantly, it guarantees availability and recovery in the US, UK, and Europe. This level of commitment reflects our confidence in our improved operational reliability and our dedication to delivering exceptional service to our members.”

Not all jet card programs sell hours. For example, Chapman Freeborn takes a deposit to have funds on account. “When purchasing flight hours, there’s a high likelihood that you’re overpaying,” Owens says. “Fixed hourly rates are set by companies to maximize their profits, which is why they offer them in the first place.”

McCown adds that if a company does sell hours, it is very important for the buyer to know if the buy-in is refundable, or if the hours expire within a given time frame. “Unless the buyer is absolutely sure of their annual usage, if there are no price benefits to buying in at higher levels, then it makes sense to buy in smaller program increments,” he says.

Money Matters
Both aircraft and schedule changes depend on the specific program. “Often there will be a penalty for changing schedule or cancellations if done within a certain window. Generally, the closer to departure time the change, the greater the penalty,” McCown warns.

“With fixed hourly rate programs, your aircraft selection is typically limited to a certain category,” Owens says. “You choose the size of the plane for each charter, but if you require a larger aircraft, you may incur additional fees and a higher hourly rate.” In contrast, he says other jet membership programs, like the one offered by Chapman Freeborn, provide the appropriately sized aircraft for each charter without the added penalties.

Many jet card programs will have peak days/periods or even black-out periods. In the peak periods, this can result in higher hourly costs, more cumbersome advance booking/cancellation terms and even having to accept a wide departure time window. For example, Wheels Up identifies between 20 and 90 peak days across numerous providers when availability is either not guaranteed or requires a longer call-out time (120 hours) and includes a pricing premium of 10 to 30 percent.

“Fliers should be aware of potential premiums for peak travel days or for upgrades to different cabin classes beyond what was originally purchased,” Harvey advises. “At Wheels Up, our dynamic pricing model offers member-only price protection through capped rates in select areas on days when demand is high and enables customers to benefit from lower rates during non-peak travel times.”

When looking at the price, it’s important to ensure that all taxes are included in every quote. Pricing structures for jet card programs vary; some include all-in hourly rates while others exclude Federal Excise Tax (FET) and fuel. “Be aware that some companies may not disclose tax amounts until after confirmation,” Owens says. “Additionally, some may claim that deicing is included. However, if de-icing is necessary, the cost will ultimately be reflected in the hourly rate, meaning you are likely covering it indirectly.”

“There is also the 7.5 percent federal excise tax for domestic flights, and most programs have fuel surcharges or the ability to implement one based on the cost of fuel,” he says. “Then there are daily and segment minimums. In some cases, taxi time is included in the minimum, in other cases it’s additional.” Among the providers that offer capped or fixed hourly rates, Gollan explains that most also charge taxi time, typically 12 minutes per segment. That means if your hourly rate is $8,000, the taxi time is $1,600 per segment.

Gollan always warns subscribers not to overbuy, and think about the next six to 24 months of flying. “Private jet companies are not banks – they go out of business from time to time, and unless your funds are in an escrow account – something that is not common, and often complicates booking – your money is at risk with a failure,” Gollan says. “Because the companies’ rules and policies, and how they handle pricing is different, it’s also possible that it makes sense to have multiple providers.”

Safety Standards 
In the US all flights must meet the rules and regulations of Part 135 which specifies pilot experience, maintenance programs and so forth. Argus, Wyvern, and IS-BAO provide different levels of ratings to operators, but if you look at most jet card contracts, the guarantee is to a Part 135 compliant aircraft and crew.

Still, it’s important to research the provider before making any decisions. “Make sure to ask each provider for their safety standards,” Owens says. “While most should have minimum standards, the reality is customers may have their own requirements that exceed the provider’s standards.” This could include PIC time, aircraft year of make, SMS, etc.

“In this case, find a provider that will work with you in tailoring a network of carriers that meet your standards,” McCown says. “Also, ensure they are financially stable; considering you may be depositing $100,000-plus as prepayment, you’ll want to make sure your funds aren’t at risk due to the provider’s insolvency, or even worse that they might be incentivized to cut corners – including safety – as a way to save on their costs.

You can request the specific safety certifications an operator holds to be provided for every charter. The highest safety standards would be ARGUS Platinum and Wyvern Wingman certifications. Carriers in jet card programs will follow manufacturer’s guidelines and often will follow best practices developed through organizations such as GAMA.

Paramount Business Jets runs safety check reports on each flight prior to take off and require ARGUS Gold minimum standards for all flights. “It’s very important to use a provider that runs safety check reports and provides them to clients before every flight,” Zaher says. “Ensuring safety compliance is crucial for risk management and peace of mind.”