In an interview with Barron’s, private air travel advisor and Shaircraft CEO, James Butler, explains that the current economic climate provides a good opportunity for new and existing private jet travelers to negotiate for additional concessions, better rates and all-around better contract terms.
“Anyone going into fractionals now has negotiating leverage with the providers, and even fractional owners that are already in programs can negotiate for additional concessions,” says Butler. “We are [renegotiating contracts] for clients with all the major providers.”
Butler points out that it’s important to negotiate concessions that add value or cut costs in ways that serve your specific needs. For example, he suggests that if a fractional provider has a one-hour minimum flight charge, and you plan to make several short flights during the contract period, you should negotiate for a number of “short-leg waivers” so that your short flights will be billed based on your actual flight time. Similarly, if you fly predominantly on a light jet but plan on making a few transcontinental flights per year, you should consider negotiating guaranteed upgrades to large-cabin aircraft for those flights.
Click here for a full text version of this article.