All-in price versus hourly rate: reading a charter quote

Why hourly rates mislead

An hourly figure may exclude positioning, taxi time, landing and handling fees, crew expenses, taxes and catering. It may assume a minimum daily usage. Two aircraft with the same hourly rate can produce very different trip prices depending on where they are based.

The NBAA charter consumer guide encourages consumers to understand what a quote includes before comparing.

What an all-in quotation should state

A useful quote names the operator and aircraft, the itinerary with times, and the total price with a clear list of inclusions and exclusions.

• Flight and positioning legs
• Landing, handling and parking fees
• Crew expenses and overnights
• Applicable taxes
• Catering and special requests
• Items excluded or variable (e.g. de-icing)

Variable items deserve attention

Some costs cannot be known in advance—de-icing, extended waiting, itinerary changes. A good quote states how these will be charged. Surprises usually come from items that were never discussed.

See negotiating without hidden risk.

Minimums and daily usage

Some operators apply a minimum number of billable hours per day, particularly for larger aircraft or on days with very short flights. A twenty-minute hop may be billed as considerably more than twenty minutes. An hourly rate quoted without the applicable minimum understates the cost of short trips.

Ask whether a daily minimum applies and how it is calculated across multi-day trips.

Block time versus flight time

Charter pricing may be based on flight time (wheels-off to wheels-on) or block time (from leaving the stand to arriving at the stand, including taxi). The difference can be meaningful at large airports with long taxi times. Neither is wrong, but you should know which is used when comparing.

A like-for-like comparison template

Lay out each quote against the same headings before comparing totals.

• Operator and aircraft registration
• Itinerary and times, including positioning legs
• Pricing basis: block or flight time; any daily minimum
• Included fees: landing, handling, parking, navigation
• Crew expenses and overnights
• Taxes and how they are calculated
• Catering and special requests
• Variable or excluded items and how they are charged
• Cancellation and substitution terms
• Quote validity period

Taxes and jurisdiction

Charter flights may be subject to taxes that depend on the route, the operator’s country and the jurisdictions involved. These rules are complex and change; this note does not attempt to summarise them. Ask the operator or broker to state which taxes are included and on what basis, and seek qualified advice where the amounts are material. A quote that is silent on taxes is incomplete. See charter pricing factors for the wider picture.

How programmes and cards complicate comparison

Jet cards and membership programmes often present fixed or capped hourly rates, sometimes with guaranteed availability on defined terms. These can be valuable for some travel patterns, but they are not directly comparable with an ad hoc charter quote. Programme rates may include or exclude positioning within a defined area, apply peak-day surcharges, require minimum daily hours, impose blackout periods or require prepayment.

To compare fairly, translate a programme rate into the full cost of a few representative trips you actually take, including any surcharges, minimums and the cost of the prepaid capital. Then compare those totals with ad hoc quotes for the same trips. NBAA’s overview of ownership and access options describes the range of models; the right one depends on how often you fly, how far in advance you plan and how much availability certainty you need.

Neither model is inherently cheaper. Programmes trade flexibility of supplier for predictability of price and availability; ad hoc charter trades predictability for the ability to choose the best-positioned aircraft each time. See charter versus ownership.

Common misconceptions

Hourly rates are a useful way to understand an aircraft’s relative cost, but only a complete trip price answers the question of what you will pay.

• “A lower hourly rate means a cheaper trip.” Positioning and fees can reverse the comparison.
• “All-inclusive means nothing else will be charged.” Variable items may still apply; check the exclusions.
• “Taxes are always included.” Confirm which taxes and on what basis.
• “Flight time and block time are the same.” Taxi time can make a noticeable difference.

Reading your next quote

When a quote arrives, check first that it names the operator and aircraft registration and shows the full itinerary including positioning. Then read the inclusions and exclusions line by line, noting anything that could be charged later. Ask for the pricing basis—block or flight time—and any daily minimum.

Only after this should you compare the total with other quotes. If one quote is significantly lower, look for the structural reason: a closer aircraft, a different pricing basis or an exclusion. Our note on negotiation explains how to respond.

Comparing fairly

Put quotes side by side on the same itinerary, passengers and baggage. Check operator, aircraft registration, inclusions and terms. Only then compare totals. No market-wide figures are asserted here; costs vary by aircraft, operator, region and date and must be confirmed in a written quotation.