Navigating Jet Cards: What Brokers Need to Know to Protect Their Clients
Dec 04, 2024
In the realm of private aviation, jet cards have emerged as a convenient solution for clients seeking seamless access to private flights without the complexities of ownership. But not all jet cards are created equal, and it falls on brokers to navigate the fine print, protect their client’s interests, and ensure their investment is safe and well-spent.
At the International Aircraft Broker Institute (IABI), our mission goes beyond training brokers; we aim to elevate the private aviation industry by fostering transparency, safety, and ethical practices. Here’s a closer look at jet cards and the essential considerations for brokers.
What Are Jet Cards?
Jet cards are prepaid programs that offer clients access to a fleet of private jets under set terms, typically in exchange for pre-purchased flight hours or a deposit. Clients benefit from guaranteed availability, predictable pricing, and simplified booking, making jet cards a favored choice for frequent travelers.
They sit between ad-hoc charter and fractional ownership: more commitment than booking flight by flight, far less than owning a share of an aircraft.
Types of Jet Card Programs
Jet card tiers are usually based on hours or deposits:
- Light usage programs — 25 hours or smaller deposits
- Mid-tier programs — 50–75 hours
- High usage programs — 100+ hours or larger deposits
Each tier has its own appeal, but the details matter. Brokers must dig deeper to ensure the program aligns with the client’s needs. A client flying 30 hours a year on short domestic legs has a completely different requirement from one flying 100 hours transatlantic.
Key Considerations for Brokers
1. Aircraft Availability and Priority
Jet cards often promise “guaranteed availability,” but the reality can differ, especially during peak travel times. Verify the fleet size, bases, and policies to ensure clients truly receive priority access.
Ask specifically about peak day definitions and how many are excluded. A program guaranteeing availability with 30 peak days blacked out is a materially different product from one with 10.
2. Avoiding Repositioning Fees
Repositioning fees — charges for moving an aircraft to a client’s departure point — are a common pitfall. These fees can quickly erode a client’s deposit. Opt for programs with strategic fleet placement or those that explicitly exclude repositioning fees.
This is where fleet base locations matter more than fleet size. A large fleet based far from your client’s home airport is worse than a small one based nearby.
3. Included Services
Transparency is key when it comes to fees, and those can add up rapidly. Check whether the following are covered:
- De-icing
- Catering
- Fuel surcharges
- Ground transportation
- Security fees
- Federal excise tax
- International handling, permits and overflight fees
Ensure clients know what to expect, as unclear terms can lead to unpleasant surprises. De-icing in particular catches clients out — it is weather-dependent, uncapped in many programs, and can run into thousands per departure.
4. Booking Terms and Cancellation Policies
Flexible cancellation policies are a hallmark of quality jet cards. Brokers should prioritise programs with generous terms, allowing clients to adjust plans without significant financial loss. Avoid programs with vague or restrictive policies that penalise cancellations.
Check the callout period too — the notice required to book a flight. A card guaranteeing availability at 24 hours’ notice is worth considerably more than one requiring 96.
5. What Happens to Unused Funds
Establish before purchase whether unused hours or deposit funds expire, whether they are refundable, and on what terms. Expiry dates and non-refundable balances are among the most common sources of client dissatisfaction with jet cards.
Red Flags to Avoid
1. Vague Terms and Hidden Costs
Some jet card providers use ambiguous language to justify repositioning fees or other unexpected charges. Thoroughly review contract details to protect clients from such practices.
2. Providers Without Aircraft or an Operating Certificate
Be cautious of newer brokerages offering jet card programs without owning or managing aircraft, and without a Part 135 certificate behind the flights.
The structural risk is straightforward: where a provider holds no assets and no certificate, client deposits may be funding current operations rather than being held against future flights. Several such programs have failed, leaving cardholders as unsecured creditors with no aircraft to claim against. The private aviation press has covered multiple collapses of this kind.
What a broker should verify:
- Whether flights are operated under a valid Part 135 certificate — see our guide to FAA Part 135 and Part 91
- Whether client funds are held in escrow or a segregated account
- Whether the provider owns, manages, or merely brokers the fleet
- How long the program has operated and under what ownership
3. Pricing That Doesn't Reconcile
If a program’s hourly rate is materially below the market for that aircraft category, ask what is being excluded or subsidised. In this industry, a price that doesn’t make sense usually doesn’t.
How IABI Helps Brokers Elevate the Industry
At IABI, we believe in equipping brokers with the knowledge to safeguard their clients’ interests and uphold the integrity of private aviation. Our courses emphasise transparency, compliance, and ethical practices. By educating brokers, we contribute to a safer and more reliable industry, ensuring clients enjoy the benefits of private aviation without unnecessary risks.
Jet card evaluation, operator verification and charter pricing are covered in the Aircraft Charter Broker Course. Compare the certification tracks or book a free consultation.
FAQ
Are jet cards worth it?
It depends on flying pattern. Jet cards suit clients who fly regularly enough to value guaranteed availability and fixed pricing, but not enough to justify ownership or a fractional share. For occasional flyers, ad-hoc charter is usually more economical.
What is a repositioning fee?
A charge for flying the aircraft empty to the client’s departure airport, or back to base afterwards. Whether it applies depends on fleet base locations and the specific program terms.
What is a peak day on a jet card?
A date on which the program’s standard guarantees — availability, pricing, or callout time — do not apply. The number of peak days varies significantly between providers and is one of the most important terms to compare.
How can a broker tell if a jet card program is financially sound?
Check whether flights operate under a valid Part 135 certificate, whether client funds are held in escrow or segregated, whether the provider controls any aircraft, and how long the program has traded. A provider with no aircraft, no certificate and no escrow carries structural risk regardless of how it markets itself.
What should a client ask before buying a jet card?
What is excluded from the hourly rate, how many peak days apply, what the callout period is, whether unused funds expire or are refundable, and who actually operates the flights.
Related Articles
