Cost analysis advisory

Independent private aviation cost analysis and billing review

A private aviation cost analysis measures the full cost of a fractional, lease or jet card program over a defined period. We include program fees, flight charges, capital consumed and any financing interest and fees, then divide that total by the hours actually flown. The analysis separates those costs from refundable deposits, unused flight credit and loan principal, so the same money is counted only once.

We use cost analysis before a commitment, to review an existing program's billing against its contract terms, and to compare alternatives at renewal. The analysis is built around the client's flight history or projected travel, rather than published rate estimates or industry averages.

We advise only the client and take no operator commissions or referral fees.

Total program cost

The full cost of a fractional program

The occupied hourly rate is only part of what a program costs. We account for each fee and the client's expected flying to calculate an all-in cost per flight hour.

The monthly management fee is fixed and charged whether or not the owner flies. When utilization falls, that fixed fee accounts for more of the cost of each hour flown. We therefore model it at the client's realistic hours rather than at the level the program is sized for. Cost is driven by aircraft size and annual hours, both of which vary widely, so an industry average drawn from other owners does not describe one client's cost.

For illustration only, an annual management fee of $120,000 contributes $2,000 per hour at 60 hours flown, or $3,000 at 40 hours. The annual fee is unchanged; fewer hours share that cost. These are hypothetical figures, not operator pricing or a client result, and they exclude all other costs.

The share purchase price less net sale proceeds is the capital consumed during ownership. Here, net sale proceeds means the sale or repurchase amount after transaction charges and before repayment of any outstanding loan. We add financing interest and fees separately. Loan principal is already represented by the purchase price, so principal repayments are tracked in the cash-flow schedule rather than added again to ownership cost.

Variable charges

Two programs with the same hourly rate can produce different all-in costs

Fuel, peak-day, positioning, interchange and ancillary charges account for much of that difference. They vary with the program, routes and travel dates, so comparing base rates alone can be misleading.

Fuel: Each program bills fuel differently, and the fuel charge can move separately from the occupied hourly rate. Its annual cost depends on the client's flight volume, aircraft category and the program's fuel pricing terms.
Peak days: The high-demand dates a program designates each year, which can carry surcharges, longer notice or both. The model accounts for the number of peak days, any surcharge and the overlap between the program's calendar and the client's travel.
Positioning and interchange: Travel outside the program's service area can bring positioning charges, and flying a different aircraft type draws hours at the agreement's exchange ratio. These terms can materially affect cost for a client who regularly departs from outside the primary coverage or flies outside the contracted category.
Ancillary charges: Depending on the agreement, catering above the standard provision, de-icing, ground transportation, international handling and Wi-Fi may be billed separately. Recurring requirements can make these charges material to the total.

Pre-commitment cost modeling

What we do before a contract is signed

Before a contract is signed, an all-in cost projection helps the client choose among the structures and programs relevant to their flying.

The projection covers acquisition cost, management fees, occupied hourly rates, fuel, peak-day frequency, positioning and interchange, and exit costs and any sale proceeds. It uses the client's expected flying rather than the program's assumed hours.

We compare those projected costs and recommend the program and structure the analysis supports. If the client's expected flying does not justify the cost of fractional ownership, we explain why and identify the structure that fits.

We assess the costs behind a new commitment, a billing question or a renewal. Our analysis uses your travel and agreement terms to explain the charges, compare relevant options and support the decision ahead.

Discuss your aviation costs

Billing review

Checking fractional charges against the agreement

A billing review compares the client’s invoices and flight record with the agreement. Billed time, interchange, peak-day charges, rate increases and ancillary fees must follow the applicable terms; an unfamiliar line is not itself evidence of an error.

Where the record supports a discrepancy, we identify the amount and the provision involved. That gives the client a documented basis for raising the issue with the operator.

Renewal comparison

Comparing program costs at renewal

For a client approaching renewal, or questioning whether the current structure still represents appropriate value, we compare the full costs of the current program and available alternatives. We base the comparison on the client's actual utilization history.

That history is most complete at renewal. It lets us compare the operator's standard renewal offer with alternatives using the same record of flights, so the client can see how the costs differ for their own travel.

The engagement

What a cost analysis engagement involves

Each engagement begins with the client's billing records, flight logs, contract documents and utilization history. For a client not yet in a program, the basis is projected utilization built from historical travel patterns, with enough detail to support a meaningful cost model.

The written analysis depends on the engagement: a line-by-line reconciliation of billing against contract terms, an all-in comparison of relevant options with a recommendation before commitment, or a comparison of the renewal offer with current alternatives.

Our fee is custom and set before the engagement begins. Our role is cost analysis and billing review. Tax and legal questions the analysis raises belong with the client's tax advisor and counsel.

Discuss your aviation costs

Common questions

Frequently asked questions

It can identify the known costs and show which missing terms prevent a complete comparison. An unquoted charge remains an uncertainty rather than an assumed zero. The conclusion is limited to what the available records support.

Yes. The fixed commitment is spread across fewer hours, and unused capacity can become more consequential than the rate difference. The analysis distinguishes using less of an existing share from buying a smaller allocation.

No. A supported discrepancy provides a basis for seeking explanation or correction. The agreement and underlying records govern the charge, and a disputed legal entitlement belongs with the client's counsel.