What Does an Aircraft Management Company Do?

Owning a business jet is more than buying an aircraft. Someone must hire pilots, schedule maintenance, buy insurance and keep records. Most owners hand that work to an aircraft management company. Here is what that company does.

The short answer

A management company runs the aircraft for the owner. The owner keeps the title and pays the costs. The company handles the daily work.

What they usually handle

• Crew: hiring, training and scheduling pilots
• Maintenance: planning inspections and arranging work with shops
• Records: keeping logbooks and compliance papers in order
• Insurance: placing cover for the aircraft and crew
• Hangar and fuel: parking, supplies and trip support
• Flight planning: permits, handling and catering for each trip

The owner pays for most of these items. Fees often include a monthly management fee, plus the real costs of crew, fuel and repairs. Our ownership cost breakdown shows how those parts add up.

Charter management

Some companies also offer charter management. The owner lets the aircraft be chartered to other people when they are not using it. In the United States this requires the aircraft to be on a charter operator's certificate under FAA Part 135. The operator has operational control of those flights. Read why this matters in Part 91 vs Part 135.

Charter income can offset some costs. It also means more flying hours, more wear and less aircraft time for the owner. Ask for the terms in writing.

Why owners hire one

• They do not want to run a flight department.
• They need a certificated operator for charter.
• They want help with maintenance planning and records.

Why some owners do not

Large owners with several aircraft may run their own flight department. It gives more control, but it needs staff and experience.

Questions to ask before you sign

1. What is in the monthly fee, and what is billed on top?
2. Who employs the pilots?
3. Who picks the maintenance shops, and who approves the work?
4. Can I leave, and what is the notice period?
5. If charter is offered, how many hours and what rate do I get?
6. Who holds the insurance, and who is named on it?

Red flags

• Fees that are not itemized
• No written report on maintenance spending
• Pressure to put the aircraft on charter
• Records that are hard to see

Where to start

Ask other owners of the same aircraft type who they use. Then compare two or three companies on fees, safety record and fleet. Our guide to private jet management companies is a good start. If you are choosing an aircraft too, browse a model such as the Cessna Citation CJ4 to see typical ownership details.

Sources: FAA, Part 91 and Part 135 operating rules (faa.gov).

Find providers in our Charter directory.