Keeping It Simple
Invoices for business-jet travel can be complex, but a recent trend could help change that.
Surf Air offers members unlimited San Francisco/Los Angeles flights for a flat monthly fee. (Photo: Surf Air)

No consumer likes a surprise on the bill, unless, of course, it’s the rare happy surprise. But lots of companies seem to consider inflated invoices integral to the business plan. As we all know from too much experience, the ploy works like this: hook the customer with a low advertised price, then hit him with extra charges.s*.

Business jet travelers’ bills sometimes come loaded with surprises, at least for those who haven’t perused all the fine print. If you’re a charter customer, for example, even the basic flight charges can be difficult to predict: in addition to a per-hour fee for time in the air, there’s a price for taxiing, and some operators also impose minimum flight times, daily minimums or premiums for international or overnight routes. In addition, you can be charged fees for positioning, de-icing and catering, plus federal excise tax, segment and fuel surcharges and an assortment of other add-ons.

Oh, and while payment of all these fees will get you up in the air and to your destination, it won’t cover landing. If you’d like to actually return to the ground at the end of your flight, you’ll likely have to pay a charge for that, too.

Despite all of this, charter invoices are a model of simplicity compared with what many fractional-share buyers face. You could almost finish a Tolstoy novel in the time in takes to wade through some fractional contracts—and if you do read yours, you’ll find that acquiring a fractional share involves a lot more than simply deciding what portion of what aircraft you want and paying for it. In addition to the purchase price, there’s an hourly operational fee, plus charges to cover such things as fuel stops and peak travel days. Yet another substantial cost consists not of an amount you pay but of an amount you don’t receive when you sell, to account for depreciation.

You know the old acronym KISS, for Keep It Simple Stupid? As it happens, it was coined by someone in the aviation field—Kelly Johnson, a renowned engineer at Lockheed Martin. I suspect some people in bizav could have benefitted from his advice.

Now, finally, it seems that some of them are getting the point, as we might be witnessing the beginning of a shift toward simpler billing for private aviation services. Many jet cards, for example, tout all-inclusive pricing, with locked-in rates, no fuel surcharges and no interchange fees for using an aircraft model other than the one specified in your contract. 

The latest trend may be to do away with per-flight charges altogether. As columnist James Wynbrandt noted in BJT last August, California-based Surf Air now offers an all-you-can-fly membership deal that lets you take as many trips as you want for a flat monthly fee (plus a nominal one-time membership charge).

So while private jet travel will never be as inexpensive as taking a bus, paying for it may one day be nearly as simple. And that’s good news. Low come-on prices can seem great initially but the thrill can end abruptly with the arrival of a much higher final bill.

 

Jeff Burger
Editor, Business Jet Traveler
About the author

Jeff Burger joined Business Jet Traveler in March 2004, a few months after the publication’s launch. Besides editing the magazine, he has written many articles for it and conducted its interviews with such luminaries as Sir Richard Branson, James Carville, Suze Orman, Donald Trump, F. Lee Bailey, and Steve Van Zandt. Burger helped to oversee the introduction of BJT’s annual Readers' Choice surveys and Buyers’ Guide.

During his years with the magazine, it has won well over a hundred editorial awards. In 2011, Burger received the Gold Wing Award for Reporting Excellence from the National Business Aviation Association and the Aviation Journalism Award from the National Air Transportation Association. He has also won writing and editing awards from the American Society of Business Publication Editors. BJT, meanwhile, was named Best International Publication in 2017 in the Aerospace Media Awards. It was also a Magazine of the Year finalist in 2011, 2013, and 2016 and an Overall Excellence winner in 2018 in competitions sponsored by the American Society of Business Publication Editors.

Before coming to BJT, Burger spent 14 years at Medical Economics, the nation’s leading business magazine for doctors, where he served on the editorial board; directed staff recruiting; oversaw a $2 million annual budget; and was financial editor, news editor, and director of special projects. He has been editor of several publications, including Phoenix Magazine in Arizona, and has been a consulting editor at Time Inc. His articles have appeared in more than 75 magazines and newspapers, among them The Los Angeles TimesBarron’s, Reader’s Digest, Gentlemen’s Quarterly , and Family Circle. Chicago Review Press published his books, Springsteen on Springsteen: Interviews, Speeches, and Encounters, Leonard Cohen on Leonard Cohen: Interviews and Encounter, Lennon on Lennon: Conversations with John Lennon, and Dylan on Dylan: Interviews and Encounters. His music writing appears on multiple websites, including his own byjeffburger.com.

Burger, a summa cum laude graduate of the State University of New York at Albany, lives in Ridgewood, N.J. He and his wife, Madeleine, have two grown children. His off-hours passions include cooking, travel, technology, movies, and music.

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