|
Buoyed by corporate profits, mostly from business aviation, the private aviation industry hit a record high in 2007, before plummeting back to earth during the Great Recession. The reason for the precipitous decline was simple—American businesses started making fewer and fewer deals. They also cut their travel budgets and instructed employees to either take commercial flights or use videoconferencing to speak to prospective clients. As badly hit as most private air charter brokers were, it was nothing compared to the people who actually made the planes. Sales of private jets and planes sunk by 28 percent between 2008 and 2010 and continued to decline into the new year. This figure includes both passenger and cargo planes that are used to ship small loads across the country. The industry did not begin to recover until 2010, when it posted an 11 percent increase at the end of the year! Where are we now? The recent resurgence in private aviation is encouraging for the economy, since most of it has been attributed to increases in business aviation. Most of the top private air charter brokers have reported increases in business flights, many of which are international flights. Flights to Hong Kong, Shanghai, United Arab Emirates, and countries like Brazil and Argentina in South America are more common than ever, since each of those areas are home to emerging economies. Because they have become a symbol of profligacy and waste, many American businesses are reluctant to admit that they own their own private jets. And to improve their public images, many of them sold their planes during the financial contraction. Not surprisingly, this has been a great advantage to private air charter brokers located in or near major metropolitan areas. What do private air charter brokers do? The average private plane costs several million dollars and tens of thousands more to maintain on an annual basis. How then do private air charter brokers post a profit? Simple...they don’t actually own the private planes they arrange! Rather, they arrange other people’s planes when they aren’t being used. They then receive a small cut for brokering the deal. This practice is not nearly as uncommon as you may think. Many of the world’s most affluent individuals have luxury toys they rarely use. To pay for maintenance costs, hangar and parking, and fuel fees, some owners choose to charter them out when they are away. That way, everybody wins. The owner makes some extra money by offsetting cost; the renter gets the service they need without the upfront investment. Air charter brokers for less There are plenty of private jet and plane companies that actually own at least a fraction of their fleets. Of course, they have to pass maintenance and depreciation fees along to their customers, which make them quite a bit pricier. Using an air charter brokers is easily the most cost-effective way to enjoy the comfort, privacy, and safety of a private plane. Air Charter Advisors is one of the leading private air charter brokers in the Miami area. They offer a whole host of services for seasoned corporate clients and first-time private fliers.
Related Articles -
private, air, charter, brokers,
| 
