Archive for January, 2012

The Effects of Higher Elevations on Aircraft Performance

Thursday, January 19th, 2012

If you are an avid skier, you probably know the effect that high altitude has on your breathing.  The same principle that makes it difficult to breathe at high altitude can also have an impact on the performance of your charter aircraft.  A common misconception among jet charter consumers is that inclement weather, (i.e. thunderstorms, blizzards, etc.), is the only source of a weather-related delay.  In actuality, the effects of air density on aircraft performance play an equal role in affecting a charter flight out of high altitude destinations.

Air density is an important consideration when traveling to popular ski-resort destinations, such as Telluride (TEX), Truckee (TRK), Eagle (EGE) and Aspen (ASE). Why? At higher elevations, air density is much lower. Low air density can have a major impact on aircraft performance and can be dangerous as it reduces lift. The lower the air density, the higher the speed an aircraft must achieve to generate lift. Warmer temperatures also reduce air density. Factor in a high temperature along with a higher elevation and it can quickly become a safety issue, and can result in a delayed departure until conditions become more favorable.

Air density can be defined as the mass of air divided by the volume it occupies. Because air density is a complex subject, we will only focus on the effects it has on aircraft performance.  What is important to know is that a number of factors, including altitude/pressure, temperature and humidity can affect the density of air.  More specifically, high altitudes, low pressure, high temperatures and humidity can reduce aircraft performance.

When air density decreases, the lifting force underneath an aircraft’s wings decreases too, along with the power produced by the engines and the thrust created by the propeller.  These performance losses will offset the already-reduced drag on the aircraft, which means that it will need more runway to safely take-off and land.  That’s why at higher elevation airports, where the density of air is already a concern, a higher temperature can be just as dangerous as the presence of aircraft icing

Fortunately for the skiing enthusiast, there are a number of private jet aircraft that were designed to perform at higher altitudes, such as the Citation Ultra and the Citation Excel. The mid-sized Citation Excel has two powerful Pratt & Whitney PW545 engines, providing excellent take-off thrust-to-weight ratio, enabling it to take-off from shorter runways at higher elevations.  In addition, the increased airflow over its engine core allows it to operate in higher temperatures without a significant loss in performance.  The Citation Excel was designed with the skier in mind as it has ample storage room for skis (or golf clubs) in its luggage compartment.

The next time you plan a trip to a popular ski resort haven, like Aspen or Telluride, keep in mind that your jet charter flight could be delayed if you encounter high temperatures or low pressure conditions.  Remember that safety should always come first, even if it means waiting a few hours for temperatures to cool down at the airport.  To minimize the chances of a flight delay, our experienced air charter agents at Stratos Jets can help you find a charter aircraft that is best-suited to handle the effects of low density on aircraft performance. In addition to ensuring your personal safety, your agent will go above and beyond to find you a private aircraft that can accommodate you, your party and your equipment.

Explaining the Taxes You Pay as an Air Charter Consumer

Wednesday, January 18th, 2012

A new bill would completely eliminate the tax paid by commercial jets, while increasing the general aviation fuel tax rate from 35.9 to 49 cents per gallon

As the U.S. economy searches for ways to regain its footing, and the state and Federal government look for more ways to balance their budgets, the subject of taxes has become more important than ever. Some jet charter users may have questions on the taxes levied on the air transportation services that are being provided to them. Here is a brief outline.

The primary way that taxes are levied upon both private and commercial aircraft operators is through the FET, or Federal Excise Tax. This fee due to the government is administered through either fuel taxes or percentage of total cost/headcount taxes.

FUEL TAXES

For recreational or otherwise non-commercial (FAR Part 91) flying, the fuel tax is set as a cents-per-gallon fee/tax. Aviation gasoline (most often used in smaller, propeller-driven aircraft) is taxed at the rate of 19.4 cents per gallon; jet fuel is taxed at the higher rate of 21.9 cents per gallon.

This tax is not a real concern for most jet charter users, except for those who are flying with illegal, Part 91 operators.

PERCENTAGE TAXES

For commercial transportation including jet charter (FAR Part 135), the FET takes the form of a percentage tax or a head tax, or both.

The traditional FET is a percentage tax on the total amount paid for air transportation. There is also a segment fee due on each domestic segment, and a head tax which applies to international transportation of persons and other specific flights. Commercial airlines and charter operations also pay a reduced rate of fuel tax at 4.4¢/gallon.

These taxes are used primarily to fund airport and Air Traffic Control operations throughout the country, and are thus very important to air transportation system in the U.S. However, it should be noted that commercial aviation (Part 121 businesses) is by the far the largest user of these services.

NEW CHANGES AND POTENTIAL ONES

There were a few increases in the FET that went into effect on January 1st of 2012. Thankfully the percentage tax of 7.5% for commercial flights was left unchanged, while the domestic segment fee (paid for each segment of a flight itinerary) increased 10 cents to $3.80. Other fees for international and Hawaii/Alaska-bound travelers have also been increased.

A bill has been recently introduced by Sen. Jay Rockefeller (D-W.Va.) and Sen. Trent Lott (R-Miss.) that would completely eliminate the tax paid by commercial jets, while increasing the general aviation fuel tax rate from 35.9 to 49 cents per gallon.

ENFORCEMENT

In recent years, as government agencies like the Internal Revenue Service (IRS) have become much more interested in their potential “revenue sources,” their auditors have become more aggressive in their audits of aircraft management companies and charter operators.

These auditors have begun assessing FET on a wide variety of non-commercial flight operations, including flights conducted by aircraft owners under FAR Part 91 when the aircraft is managed by an outside management company.

It’s also important to mention that the IRS and Federal Aviation Administration (FAA) can have different views on what constitutes commercial and non-commercial operations. In certain cases, an operation that is viewed as non-commercial by the FAA may actually be viewed as commercial by the IRS for FET purposes. At Stratos Jets, we support straightforward tax laws and regulations, so that all operators clearly understand how their flights will be categorized and taxed.

We hope that we have given you a better understanding of the taxes you pay as a jet charter consumer. We believe that business aviation produces economic growth, and results in increased productivity and the expansion of companies nationwide.

This increases overall employment and thus the total tax base at the same time – creating a win-win situation for everyone. That’s why we would oppose any new legislation that would raise taxes on FAR Part 135 operators and their customers, who we believe are certainly paying their fair share already.

What Constitutes Unethical Business Practices in Private Aviation?

Wednesday, January 18th, 2012

By working with an ACANA member, you can trust that your air charter service provider is honest, reliable and fair.

In all ways, Stratos Jet Charters seeks to be open, honest and fair with our clients.  As a member of the prestigious Air Charter Association of North America (ACANA), we are committed to promoting higher standards of ethics, professionalism and integrity. We engage in fair business practices, such as honest and fair advertising and clear pricing.  A founding tenant of both our organization and ACANA is to provide our clients with the information they need to make informed buying decisions for each and every charter flight. 

Because of the recent entry of air charter brokering in the industry, it is not yet fully regulated by the Department of Transportation (DOT).  This “free” environment has allowed for some air charter organizations to engage in unfair and dishonest business practices to undercut their legitimate competitors.  As both an ACANA member, and agent for our clients, Stratos Jets has a responsibility to offer our clients insight into these deceptive business tactics to help them make the best decisions for their individual jet charter needs.
  
What Constitutes Unethical Business Practices in Private Aviation?

As one ACANA member said, “unethical business practices are the evil twin of best practices.” Unethical business practices can take on many shadowy forms, and are not always easy to identify.  The best way to arm yourself against unethical brokers and operators is to commit yourself to only working with ACANA members. ACANA members play a key part in promoting best practices and professionalism and are barred from engaging in unethical business practices. However, if you should choose to work with a non-ACANA member, you need to be aware of the possibility of your charter broker engaging in dishonest and unfair business practices.

An example of a deceptive business practice that we have seen in the industry is “phantom aircraft bidding.”  This practice occurs when a charter brokerage offers a firm quote on an aircraft at a price point that is not available in the charter market.  After the charter broker “wins the trip” by procuring a contract with the client, he or she will try to “fill the requirement” by contacting several operators and using the client’s signature on the contract as leverage. If the broker can’t offer the aircraft they promised, they will then tell the client that a mechanical, or other event, has occurred to prevent the flight.  

Another example of a deceptive business practice occurs when a charter broker offers a “best price guarantee.” Charter brokers who offer this type of pricing do not offer clients an “apples-to-apples” choice; but instead rely on taking advantage of a client’s inexperience or lack of knowledge to offer an aircraft from an operator with a poor safety history. These brokers will provide an aircraft with an unacceptably low-level of insurance to operate the flight, or an aircraft that has not been approved for aircraft charter operations.

Other examples of unethical business practices that are currently prohibited by ACANA include: 

- Creating confusion in the consumer’s mind as to whether a service provider is an air carrier or a broker, such as creating marketing materials that imply a broker is an operator 
- Engaging in speculative pricing that is not based on actual aircraft availability in an effort to undercut the legitimate pricing of competitors 
- Engaging in behavior or other unlawful activity that results in enforcement action from the FAA or Department of Transportation 
- Transacting business with operators that are not properly certified (135 or ICAO equivalent) 

At Stratos Jets, we would never put profit over the safety and integrity of your charter flight experience. We understand the real costs of private aviation and relate these to our clients. Our air charter agents are among the most knowledgeable in the industry and are available 24 hours a day to answer and explain any questions you may have regarding your charter flight.

Stratos Jets only works with fully registered Part 135 and Part 121 Air Carriers, verified through independent agencies such as WYVERN and ARG/US. Stratos Jets’ In-house Safety Due Diligence program carefully screens all aircraft operators to ensure that every flight flown for our clients is on the safest, most well maintained aircraft under the command of two highly trained pilots. This ensures that your charter experience will be among the safest in the industry, as well as of the highest quality. 

As an ACANA member, Stratos Jets’ goal is to inform the public about the requirements and expectations of a safe, effectual charter experience. We believe that the more knowledgeable our clients are, the better our industry, regulations, and services will be. We hope to be a contributor in helping ACANA shape the regulatory landscape of FAA and DOT regulations to continually improve the charter marketplace for the benefit of our clients.

Member of Air Charter Association of North America Member of National Defense Transportation Association TerraPass - fight global warming, promote clean energy National Business Aviation Association member - NBAA All air charter flights chartered by Stratos Jets are ARG/US approved
Stratos Jet Charter Services is a BBB Accredited Business. Click for the BBB Business Review of this Aircraft Charter, Rental & Lease in Winter Park FL

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