We recently spoke with James Butler, a self-professed “ombudsman for private aircraft owners”, and CEO of Shaircraft Solutions of Bethesda, Maryland to discuss what concessions should be offered if a plane is late or the jet does not arrive at all.

“It really comes down to specific provisions within your contract, but also how well you negotiate to get a concession that adds value to your flying requirements,” Butler explained.

In the eyes of private jet brokers, on-demand charter providers, or even fractional operators, flight delays and no shows come in two forms:

1. Delays they have control over: Mechanical errors, staffing problems, labor issues.
2. Delays they don’t have control over: “Force Majeure” (e.g., weather, war, or riots)

According to Butler, “If the provider is more than an hour late, and it is their fault, the customer gets additional flight time equal to the amount of the delay, up to two hours.”

Butler (photo, right)stressed the importance of making sure that the concessions offered are actually useful to your particular travel situation. He said it’s common for operators to throw more hours at you, but the additional time is not beneficial if you’re not using all your hours already.

If additional hours are not useful, Butler recommends negotiating something more beneficial, such as the following two concessions:

1. Ferry Fee Waiver, which waives the fee normally charged when you travel outside the provider’s service area.
2. Short Leg Waiver, which will bill you for the actual flight time rather than the minimum requirement. This would be a better concession for someone who makes frequent short flights, such as the 28-minute jaunt from Washington DC to New York (and are typically charged for a full hour of flight time).

He offered these negotiating tips:

• Promises as to aircraft reliability and their associated provisions are made in your contract – no matter if it is a one-time charter, or fractional ownership.
• If you do experience a delay, get specifics on why the flight was delayed. This may help with your concession negotiation.
• Don’t necessarily accept their first offer. Consider options that best meet your flying needs and ask for them.
• Typically, the operator wants to keep your business and can be influenced in terms of concessions for situations they have control over.

Butler compares the experience of dealing with aircraft providers to that of buying a new car: “When you do not have the same information as the car salesman, you are at a disadvantage. You do not know your options, so you tend to accept concessions as they are offered. It’s important to know what your options are.”

Consultants and advisors like Shaircraft Solutions offer to help reduce the information assymetry. Other companies such as JetAdvisors and Fractional Insider provide similar contract negotiation services, as well as acquisition, management and aircraft charter information.

Since there is no official governing body or consumer advocate group such as the International Airline Passenger Association for executive aviation, these consultants can act as a liaison during contract negotiations.

Helium’s Perspective:

Advisors can add real value when dealing with private air providers, from saving time to cutting through the legal issues to negotiating. But an advisor is not the solution if you are chronically dissatisfied with your provider – you need to switch providers. And negotiating excessive concessions that make it hard for the provider to service you profitably will ultimately reduce your own level of service. But an advisor can help you know what to ask for, so that you present as an informed consumer. Hopefully, we add some value in that process as well.

If you have experience with Shaircraft or any other private aviation consultants, email us at tips@heliumreport.com or write a review.