06.26.25-Articles-Aircraft Management
06.26.25-Articles-Aircraft Management

5 Ways Aircraft Management Saves a Private Jet Owner Money

Fuel Savings

Fuel is the largest variable cost that private jet owners incur; accounting for about 38% of variable expenses and 19% of annual operating expenses. Large fleet fuel purchase programs through a management company can provide private jet owner savings.

“The more diversified a private jet operator is, the more savings that can be passed along to an aircraft owner directly,” says Daniel Murphy, Vice President of Finance at Clay Lacy Aviation. “We can pass along savings to aircraft owners by driving down purchase costs. Aircraft owners essentially save by leveraging our large fleet’s buying power.”

Crew Training, Retention, and Utilization Expenses

Pilot and cabin attendant training is a necessary and recurring component to private jet ownership expenses. Pilots are required to attend training multiple times throughout a year to remain proficient on aircraft systems and emergency procedures. “We can achieve discounts on crew training in the range of thousands of dollars for each training event,” estimates Murphy. “Over time, these savings add up and make a difference for our clients.”

A good aircraft management company reduces aircraft ownership expenses through crew retention. According to a Pilot Turnover Study by AIN, “a flight department replacing a G650 pilot could cost up to $700,000 during their first year.” Clay Lacy carefully vets pilots and cabin attendants; meticulously choosing only the best and most well suited to be part of an aircraft owner’s team. Clay Lacy enjoys an incredible level of retention for the industry, offering a consistency, efficiency, and savings often unachievable with other private jet management companies.

Aircraft management saves a private jet owner money by utilizing lateral use of flight crews on similar airframes. Rotating flight crews between aircraft helps eliminate the need for outside contract pilots in the instances when full-time crew members are unavailable.

Insurance Savings

As with other components, aircraft insurance savings comes in a variety of ways. By leveraging the scale and relationships with Clay Lacy’s fleet size, its managed aircraft benefit from reduced rates from providers, as well as detailed data with which to make the best decision on coverage. But aside from actual savings, Clay Lacy aircraft benefit from insurance programs that protect the operations that make aircraft ownership worthwhile

Subscription Expenses

The must-have amenity of inflight Wi-Fi can also be an area of aircraft owner savings, as Clay Lacy’s long relationships with leaders Gogo, Starlink, Viasat and Honeywell can reduce subscriptions for the individual aircraft. “Once again, we see savings for a private jet owner based on an ability to individually serve one client while maximizing the benefits that a large fleet yields,” said Murphy. In addition to Wi-Fi, any other subscription-based services and warranties benefit from the large fleet approach.

Trip Expenses

Another area to improve efficiency in private jet management is through regular expenses from a specific flight. Examples of trip expenses include ground transportation, catering, landing fees, aircraft parking, international permits, FBO services, crew hotels and crew transportation. “Aircraft management companies maintain relationships between various vendors and can achieve discounts that a one or two aircraft flight department cannot achieve,” he said.

Maintenance Expenses

In addition to the five areas mentioned above, an aircraft management company can significantly lower maintenance costs while continuing to maximize an owner’s use of the aircraft. “An aircraft management company that offers in-house maintenance will be able to save a jet owner over the long-term by decreasing the number of cycles imposed on an aircraft and increasing dispatch reliability,” Murphy said.

“Clay Lacy’s policies include an aircraft replacement option that allows for individuals to utilize other jets in the fleet when their aircraft is down for maintenance or experience another issue or service update,” he said. When an aircraft management company maintains a large fleet, the temporary replacement option provides clients with peace of mind and ultimate convenience.

The Individualized Approach To Savings

Clay Lacy looks at both qualitative and quantitative data regarding each aircraft in the managed fleet. Subsequently, the information gathered is used to choose the best course of action for projected long-term savings, as well as operational goal achievement. It is a best-of-both-worlds situation – the cost-savings benefits of a large organization, with the familiarity and comfort with a small management company.

Every aircraft owner has a professional and specialized team, available at any time; day or night – with the resources and relationships available to give them the ownership experience that they deserve and desire.

 

Would you like to know how you can save more money as a private jet owner? Contact an aircraft manager today.