The History of Business Jet Charters
The first jet airplane was designed in the mid 1930s, and jets came into use as fighter planes towards the end of World War II. After the war, commercial air travel grew in leaps and bounds, and the jet aircraft became increasing popular as a fast and comfortable mode of long-distance transportation.
While scheduled jet flights were used by business travelers as well as those flying for personal reasons, it was not until the mid 1960s that the travel requirements of the top-level business executive were properly addressed. Lockheed, Gulfstream and Learjet were among a number of companies that introduced small jet planes that were luxuriously outfitted for the wealthy business flyer. CEOs, oil magnates and other multi-millionaires flocked to buy these exclusive private business jets.
The Boeing 727 long-range jet and similar large aircraft were also often used as flying five-star boardrooms, bedrooms and living rooms by super-rich travelers. It was not until the 1980s that it became possible to install satellite phones, video monitors, computers and other office equipment on board.
As soon as business jets were launched on the market, charter operators started to appear too. Corporations realized they could benefit tax-wise, and in other financial respects, from chartering aircraft whenever they needed to rather than owning them outright, and the business air charter industry was born.
In the late 1990s private air charters became more popular, as several cheaper VLJs (very light jets) came onto the market. At the same time, dissatisfaction with scheduled air carriers was growing as security concerns and congestion increased, and the rise of the internet made it simple to find charter deals online. On top of that, the growth of the air charter sector and the higher availability of routes and flights pushed prices down and encouraged more people to try private air charters.
This simultaneously gave rise to the fractional ownership model, where individuals and companies buy shares in an airplane or pool or airplanes managed by an operator. Typically, one would purchase a ˝ to 1/16 share of the aircraft, and then pay the corresponding management fees, as well as for flight hours, fuel and related flight charges.
After 9/11 business charter travel received a boost from executive flyers who wanted to avoid spending the extra time needed for security procedures at regular airports, as well as minimize on-board terrorism risks from fellow passengers who might slip through the security checks.
In 2004, the FAA (Federal Aviation Authority) introduced stricter regulations for the air charter industry, with the Part 135 certification requirements. This was partly an effort to clarify who (aircraft owner, broker, management company etc.) is responsible for the plane’s movements, crewing and compliance with prevailing regulations.
A few years ago as the economic crisis started to affect the Western world and many corporations saw the need to cut spending, there was a dip in private charter flights, and fractional jet ownership also declined significantly. Now that the economy is improving again, the business jet charter sector is picking up as more flyers are seeing the advantages in traveling by charter aircraft.
