Perhaps you’ve been considering the purchase of an executive jet for your business—for all the benefits and personal attention that come with having your own flight department—but you cannot fully justify the cost of aircraft ownership.
Or it may be you already own your own business aircraft, but you just don’t use it as much as you anticipated—or your level of use has simply declined over time and there are days or even weeks where your jet sits idle.
Or it could be your business needs have changed and you’ve decided to sell your current business jet—but you want to wait for the market to shift in hopes of securing a higher selling price.
All of these situations and many others may be good reason to give consideration to placing your jet on the charter certificate of a professional air charter services provider who can charter your aircraft during the times you are not making use of it—and pay you a percentage of fees earned.
While you could certainly work towards gaining your own Part 135 air charter certificate (an FAA requirement for any owner wishing to offer air charter services for hire), the certification process can take up to a year or more to complete and calls for qualified Part 135 flight crew and management personnel in addition to Part 135 qualified training programs, commercial aircraft insurance, and a myriad of other provisions.
Alternatively, placing your jet onto the Part 135 certificate of an existing certificate holder lets you take advantage of all the benefits of Part 135—without all the hassles!
Benefits of Part 135 Air Charter Management
When you place your jet into service with an air charter operator, you can immediately turn your aircraft’s downtime into earnings, to help defray the fixed costs associated with aircraft ownership or off-set expenses associated with an underutilized or idle aircraft.
An air charter operator can actively market and sell flying time on your aircraft and has the expertise and the clientele to readily fill available time-frames, while managing all related Part 135 requirements.
*Placing your jet into charter operation also lets you take advantage of certain tax benefits such as depreciation and in some cases you may also be eligible for an annual fuel tax rebate.
In particular, those considering a new business jet purchase may want to investigate Part 135 charter opportunities as a possible way to reduce or even eliminate aircraft acquisition sales tax.
And while air charter income is generally taxable income, you may be able to reinvest your air charter earnings into tax-deductible aircraft equipment and other upgrades—an appealing option for those with concerns about the potential wear-and-tear of chartering their jet.
Of course, every individual and business is different and potential tax benefits may not apply to all taxpayers. Consulting with a qualified tax professional is of paramount importance to ensuring an understanding of your particular tax circumstances.
All the Advantages of Aircraft Ownership
Best of all, when you make your aircraft available for air charter, you maintain full control of your aircraft. You decide when it will be available for charter—and when it won’t. You enjoy all the benefits of owning your own private aircraft—fly exactly when you want to fly, in accordance with your schedule. Your aircraft will only be available for charter as you allow.
Shoreline Aviation can place your business jet on our FAA 135 air charter certificate #FRIA997D—and you can begin generating supplemental income from your aircraft that may also have the potential to lower your tax burden. We have held our Part 135 Air Charter Certificate since 1981 and can offer you three decades of experience managing and operating charter aircraft services to the highest standards.
And when your aircraft is operated under Shoreline Aviation’s care, you also benefit from our full-service aircraft management services, including flight planning, catering and hotel reservations in addition to our aircraft fueling and expert maintenance services, as well as the provision of our highly trained, Part 135 qualified flight crews and pilots.
Air Charter flight demand is high and Shoreline Aviation has immediate Part 135 air charter opportunities for mid-size business jets including Cessna Citation Excel/XLS and Sovereign models as well as King Air and Cheyenne turboprops.
Call us today to learn more about our Part 135 Charter Management services at (781) 834-4928.
*Speak with a Tax Professional: Potential savings and benefits described in this article will not apply to all taxpayers! Every individual and business is different. Consulting with a qualified tax professional is of paramount importance to understanding your particular tax circumstances. We urge you to obtain competent advice to determine the best strategy for your capital investments or contact the tax experts at Advocate Consulting.