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As demand for private jets soars, due diligence remains more important than ever

As demand for private jets soars, due diligence remains more important than ever

On Behalf of | Sep 8, 2020 | Aviation Law |

For a long time, the use of private jets has been dominated by wealthy individuals, globetrotting business executives and high-profile celebrities. These types of clients will continue to account for the majority of trips.

However, in recent months, regular consumers have begun exploring the use of private aircraft for travel. While this trend is a likely boon for private jet operators, more passengers means more scrutiny.

Private flight business soars despite downturn

Demand for private flights has increased in recent months, according to a CNN report. Unsurprisingly, this is being attributed to the cramped nature of public commercial flights, coupled with ongoing health concerns. Many travelers have opted to turn to small jet operators to avoid these issues.

Private jet companies described themselves to CNN as “inundated” with requests, as bookings fill up far in advance. One U.S.-based charter company said they’ve seen a 100-300% increase in requests, depending on the region.

The influx of travelers, many of whom have never used such a service before, also represents an opportunity for additional scrutiny.

One misstep can be costly

With increased demand, it is more important than ever that private jet businesses adhere to all relevant regulations. Depending on how the aircraft is registered and the purpose of the flight, that might include oversight from agencies such as:

  • The Federal Aviation Administration
  • The Department of Transportation
  • The National Transportation Safety Board
  • The Internal Revenue Service
  • The Securities and Exchange Commission

Federal and state taxes, foreign regulations and the ownership structure of operation should also be kept in mind.

One overlooked rule could easily be used against you in the event of any jet-related incident. It is not just civil penalties or a potential criminal investigation. Insurance coverage may be denied on the basis of a violation, which could leave you facing a difficult financial situation.

There has never been a better time to operate a private jet business. Just make sure you protect yourself by doing the proper due diligence on the ground.

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