Should You Own the Charter Company Too?
For certain buyers of turbine-powered aircraft, jets and turboprops alike, the question isn't just how to own an aircraft, but how to make that ownership work smarter. One option worth serious consideration: establishing your own FAA-certified Part 135 air charter operation.
The concept is straightforward. Rather than simply placing your aircraft into an existing management company, a common path that brokers often suggest is for you form a separate business entity and obtain your own FAR Part 135 air carrier certificate. You own the aircraft. You own the charter company. The aircraft is then leased to the charter operation, which generates revenue by making it available to qualified charter customers.
Done right, charter revenue can meaningfully offset the fixed costs of aircraft ownership: crew salaries, maintenance, insurance, hangar fees, and more. Just as importantly, the structure creates a clean legal separation between your personal assets and the charter operation's liabilities so all employees and operational risk sit within the charter entity, not with you personally.
Is This the Right Path for You?
This model works best for owners who want more than just a managed asset. It’s those who want operational control, a stake in the business, and a long-term strategy for cost recovery. It's not the right fit for every buyer. If your usage patterns don't lend themselves to charter availability, or if you're looking for a simpler, more hands-off arrangement, placing the aircraft with an established management company may be the better match.
How the Process Works
The FAR Part 135 certification process is detailed and takes time, typically anywhere from 90 days to well over a year, depending on the complexity of the operation and how thoroughly you prepare. The smartest first move is engaging a former FAA Safety Inspector as your lead consultant. They understand the certification process from the inside, can help you build the right team, and will guide you through the FAA application from start to finish. They can also serve as the regulatory Director of Operations, pilot, and check pilot, something I can perform personally.
Once certified, you'll hire and train qualified pilots, establish your operating procedures, and begin building your charter client base. As the business matures, additional aircraft can be added to the operation, thus further distributing fixed costs and expanding revenue potential for all owners involved.
What It Takes
Make no mistake: this is a real business that requires real investment. You'll need upfront capital to fund the certification process, initial staffing, and operating expenses before charter revenue begins to flow. Engaging the right advisors from the beginning, legal, financial, and aviation, is essential to doing it correctly and efficiently.
But for the right buyer, the payoff is significant: a professionally operated, revenue-generating business that you own, that offsets the cost of an aircraft you were going to purchase anyway, and that keeps your personal liability firmly protected behind a separate corporate structure.
The right ownership structure doesn't just carry your aircraft — it carries your business forward.
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