Jet fuel. The jargon in the aviation industry is “Jet-A”. It is approximately 35% of the operating cost of an aircraft. A cost that brings the stock market down for the airlines and results in layoffs and losses. How does the price of jet fuel impact the private jet industry? Mostly, it affects the charter operators as they are very much like the airlines and rely on cost cutting tools to prevent any waste of their profits. The major advantage being that there is a tax break on the purchase of Jet-A fuel which helps the charter operators control their operating costs.
As far as the private jets owned and operated by an individual or a private entity, there are no such tax breaks, as they are used for their personal travel only. How do we then control the cost of jet fuel as a private owner of an aircraft that can guzzle thousands of gallons of jet fuel on a flight? This is where Icarus Jet offers its jet fuel resale solutions. Icarus Jet has a resale value of jet fuel that is set on the number of aircraft in our fleet that we purchase jet fuel for. So, the more the merrier! Fleet discounts through major FBO’s, handlers and suppliers can save you 2% or more on every purchase. This 2%, adds up to a lot by the end of the year.
Fuel tankering – We have a cutting-edge software that calculates the difference in the price of jet fuel from departure to destination. It then uses its price matrix to calculate how much jet fuel should tanker (extra or not). This algorithm will save you 5-7% yearly. It is very easy to use and highly accurate when it comes to the decision making process of how much extra fuel to uplift.
Besides the cost savings, one of the biggest advantages to buying Jet-A fuel from Icarus Jet is that we are available globally. Our fuel is available at civilian and military bases. The hassle of carrying a credit card or cash is gone. With our fuel releases, crew can uplift Jet-A fuel just by showing up and asking for a fuel truck. No one can beat this easy set up.
To open a Jet-A fuel account today, please contact Adrian Banciov or Kamran Khan.
Written by: Kevin Singh