When researching private jet companies, it’s important to get the facts so you can find the right provider that fits your personal and business travel needs. Since aircraft availability, safety standards, fees and more can vary significantly from company to company, make sure you have all the information before investing in a private aviation program. Check out the Magellan Jets vs. NetJets comparison below to evaluate benefits, business models and other key aspects of their services.
Magellan Jets vs. NetJets
Business Model & Infrastructure
NetJets, a subsidiary of Berkshire Hathaway, has provided private jet services since its founding in 1964. Offering fractional ownership and jet card services, NetJets’ business model involves owning its own fleet of over 600 aircraft of different sizes and models. With aggressive financial goals set by its parent company focused on expansion and growth, NetJets must keep its fleet optimized, often resulting in larger clients and fractional owners being prioritized above smaller ones. With such a model, client funds are used for operations, such as aircraft maintenance, covering the salaries of over 6,000 employees, monthly management fees as well as other expenses.
This focus on fleet optimization can lead to trips being late or moved altogether in order to accommodate their schedule instead of their client’s needs. Additionally, as a private jet provider that owns its own fleet, NetJets will always try to use their own equipment to recover a trip in the event of mechanical issues, as it’s more cost effective for them to do so. However, usually, the closest aircraft that the provider owns could be hours away, meaning guests end up on off-fleet, charter flights if they don’t want to wait (while still being charged NetJets rates).
Meanwhile, Magellan Jets’ model focuses on providing sound stewardship over the security, privacy and finances of all guests. Founded in 2008, Magellan Jets is a proudly lean, privately-owned company with no debt, providing jet card ownership, pay-as-you-go membership and on-demand charter services. Since clients’ funds are never mixed with operational funds, Magellan Jets guests fly with the peace of mind knowing that they’re investing only in their travel experiences.
Should a mechanical or scheduling issue occur, the Magellan Jets model allows them to look for the next best and closest option, without inconveniencing the client. The true highlight guests can expect is a high-level attention to detail that ensures clients are safe, comfortable and on-time. Showcasing its elevated approach to safety and excellence, Magellan Jets’ continuously audits over 2000 aircraft and 6000 crews to make sure the highest industry standards are being met.
Investment & Fees
Roughly 30% more expensive than other leading private jet providers, NetJets requires significant upfront investments, in addition to other fees. In particular, fractional owners end up getting locked into lengthy contract terms on assets that depreciate.
When determining the return on investment of working with NetJets, one must also take a closer look at the hourly rate. Numerous costs are unbundled to make the industry’s highest rate seem competitive, though that’s not the case when factoring in the hidden fees. While an hourly rate may be advertised at one price, a client’s actual hourly investment is much higher once you take in monthly management fees (even when an owner isn’t using the aircraft), peak day fees and other costs into consideration.
Additionally, elite card owners are billed 25% more when flying on high volume days. In general, the program is designed to encourage owners to avoid flying during the holidays and other busy times of year, so that aircraft can be reserved for fractional owner use. Jet card owners with 18-month terms aren’t even guaranteed access on high volume days during the last six months of their contracts.
On the other hand, Magellan Jets provides superior reliability and client experience with full pricing transparency. Whenever a guests receives an hourly rate, there are never any hidden fees that will inflate the price tag.
All in all, guests can expect the lowest financial risk and lowest possible incremental spend when flying with Magellan Jets. Clients are never burdened by monthly maintenance fees or peak travel fees.
Safety Management System
While both companies have expert safety management systems (SMS) in place, there are slight differences.
Although NetJets has a world-class, in-house SMS, it’s advanced training qualifications program occasionally results in clients being flown by pilots with minimal time on certain aircraft types. With aircraft being reassigned frequently, as well as new aircraft requiring new pilots, there’s no chance for dynamic auditing to occur.
However, Magellan Jets offers dynamic, real-time auditing on each and every flight to ensure SMS compliance. This includes enhanced COVID-19 protocols and ground transportation briefings, plus advanced airplane, pilot and crew screening so you know who you are flying with, every time.
Magellan Jets continues to be a leader when it comes to safe flying, with several members of executive leadership serving in important roles that set the industry standard, such as the Air Charter Safety Foundation.
Aircraft Availability & Access
With over 6,000 clients, but only a few hundred aircraft, NetJets cannot guarantee that every fractional client will fly on a NetJets tail number. Since larger clients receive aircraft priority, those with smaller shares are forced to fly off-fleet on a chartered flight, making NetJets the industry’s biggest broker. Essentially, many guests are paying 30% more just to be brokered out.
For example, if there’s ever a situation where both a Marquis jet card owner and a NetJets fractional owner are trying to fly on the same aircraft at the same time, the priority will always go to the fractional owner. As a result the Marquis jet card owner would be asked to fly on an off-fleet, charter flight, while still paying the same NetJets rates.
Additionally, working with NetJets also comes with blackout dates, peak travel dates and other high volume dates that all translate to the same thing: your plans better be flexible. While NetJets clients can request upgrades to larger aircraft or multiple aircraft per day, they aren’t guaranteed access, especially on peak period or black out dates.
Magellan Jets, however, always lets you fly when you want. For jet card owners and members, there are no peak travel fees and no blackout dates. In addition, Magellan Jets guarantees multiple daily aircraft use.
With Magellan Jets, travel on your terms and enjoy effortless, personalized and purely private experiences, every time. Click the link below to learn more.