Aircraft-to-Charter Feasibility
Can This Aircraft Go on Charter — and Should It?
Those are two different questions.
An aircraft may be capable of operating under Part 135 and still be a poor charter candidate because of operating costs, aircraft configuration, market demand, maintenance requirements, crew requirements, or certification complexity.
Before committing significant capital, Blue Mountain Aviation Services (BMAS) helps aircraft owners and prospective operators determine whether a proposed charter operation makes sense from a regulatory, operational, and business perspective.
EVALUATING FEASIBILITY
Start With the Aircraft
Not every aircraft is equally suited for Part 135 charter operations.
BMAS begins by evaluating the aircraft and its proposed mission.
Considerations may include:
Aircraft make, model, and configuration
Passenger seating and payload
Range and mission profile
Single-pilot or two-pilot operation
Maintenance and inspection requirements
Required equipment and modifications
Aircraft conformity considerations
Training requirements
Insurance considerations
Expected utilization
Operating costs
The question is not simply whether the aircraft can operate under Part 135.
The better question is whether it is the right aircraft for the proposed charter operation.
Evaluate the Proposed Operation
The aircraft is only one part of the equation.
BMAS also evaluates how the owner intends to use the aircraft and what type of charter business is being considered.
This may include:
Owner use versus charter availability
Geographic operating area
Typical trip length
Passenger profile
Expected annual utilization
Aircraft management structure
Crew requirements
Maintenance support
Hangar and operating base
Charter sales strategy
Existing management-company relationships
These factors help determine whether the proposed operation is practical and what certification structure may be appropriate.
Determine The Part 135 Path
Once the aircraft and mission are understood, BMAS evaluates the regulatory structure required to support the operation.
Depending on the proposal, this may involve:
Operating under an existing Part 135 certificate
Establishing a new Part 135 certificate
Single Pilot certification
Single Pilot-in-Command certification
Basic Part 135 certification
Full Part 135 certification
Part 119 management requirements
Training and checking requirements
Safety Management System requirements
Maintenance program considerations
Operational-control requirements
The certification path can have a significant effect on startup cost, staffing, workload, and timeline.
Choosing the right path early can prevent expensive changes later.
Existing Certificate Or Your Own?
For some aircraft owners, placing the aircraft with an established charter operator may be the most practical solution.
For others, establishing a separate Part 135 operation may provide greater control over the aircraft, operation, and long-term business strategy.
BMAS can help evaluate both approaches.
Placing the Aircraft With an Existing Operator
Considerations may include:
Management fees
Charter revenue sharing
Aircraft availability
Owner-use restrictions
Crew arrangements
Maintenance management
Operational control
Insurance
Contract terms
Establishing Your Own Part 135 Operation
Considerations may include:
FAA certification
Part 119 management
Manuals and training programs
SMS
Pilot staffing
Maintenance structure
Operational control
Regulatory compliance
Continuing FAA oversight
Startup and ongoing administrative costs
Neither approach is automatically better.
The appropriate structure depends on the aircraft, owner's objectives, expected utilization, and economics of the proposed operation.
Understand the Economics
Revenue Factors
Expected Charter Utilization
Realistic Charter Rates
Cost Factors
Director of Operations Costs (fuel, maintenance, reserves)
Crew & Training
Insurance & Management Expenses
Increased Maintenance Exposure
Certification & Compliance Costs
Owner-Use Requirements
The objective is to develop a realistic picture of what charter activity may, or may not, contribute toward the cost of aircraft ownership.