Empty Leg Private Jet Flights Explained by Alex Kowtun

Editor’s note: This transcript has been lightly edited for clarity and readability. Dagen Davis: What are some common misconceptions about chartering? Alex Kowtun: I think empty legs are probably the biggest misconception. People believe they can fly for free. You see advertisements on social media offering something like Teterboro to London for $6,000. A lot of that is clickbait, and those opportunities rarely exist as advertised. It is frequently a marketing strategy. That is probably my biggest concern with people chasing empty legs. They assume it will always be cheaper or provide a better deal, but they lose flexibility. A lot of the time, the flight is not even available. Dagen Davis: What about the price of empty legs? Alex Kowtun: In my experience, I commonly see empty legs priced approximately 30 to 40 percent below conventional charter. Sometimes the difference may only be 15 to 20 percent. A lot of people expect to pay ten cents on the dollar because the airplane has to reposition anyway. Operators generally are not giving those flights away the way they may have eight or nine years ago. Many operators would rather reposition the aircraft empty than price the flight at an unsustainable level. Dagen Davis: I have seen advertisements for programs where someone purchases a membership for a few thousand dollars per year and receives access to empty legs across the country. Members join a waitlist, and if they receive the flight, the entire airplane is available to them. Are you seeing more of these programs, or is this limited to a few companies? Alex Kowtun: We have seen them because the concept is attractive to market and appeals to people who would not normally be private aviation clients. However, that is not really our niche. Palm Beach Jets primarily works with family offices, entrepreneurs and ultra high net worth clients who are looking for something different. They are concerned about safety, timing and the amount of experience the pilots have in that specific aircraft type. When we receive an inquiry that falls outside our niche or expertise, we refer it to someone better suited to that traveler. Dagen Davis: What are some of the hidden costs that someone new to charter might not expect? Alex Kowtun: Some unexpected costs surprised me when I first entered the industry. One example is event related airport fees. A traveler can have a charter fully booked, but if the advisor or broker is not carefully managing the details, the aircraft could arrive at a destination with a significant landing or event fee. During major events such as the World Cup or the Super Bowl, that fee could potentially reach $12,000. These costs are sometimes not disclosed until the day of travel. I have also seen situations where a broker did not disclose them properly, which is unprofessional, and the client received the additional charge at the end. Another unexpected expense is deicing during the winter. This is a cost that cannot always be predicted in advance. An aircraft may be ready for departure and require deicing that results in an additional charge of several thousand dollars. Even though the traveler is chartering the aircraft rather than owning it, that expense may still be the charter customer’s responsibility. Pricing examples reflect the speaker’s experience and market observations at the time of recording. Empty leg availability and charter expenses vary according to the route, aircraft, operator, airport, weather and operating conditions. Palm Beach Jets is an independent private aviation advisory and contractual aircraft management firm. Palm Beach Jets does not operate aircraft or hold itself out as a direct air carrier. Charter transportation is arranged through properly certificated third party operators.