When you buy a private jet, you’re not just buying an aircraft. You’re stepping into an operational ecosystem that requires crew, maintenance, regulatory compliance, insurance, scheduling, and — if you want to offset costs — charter management. Most owners don’t run those functions themselves. They hire an aircraft management company to do it.

Aircraft management company selection matters more than most buyers realize going in. The wrong management company costs you money, headaches, and sometimes the safety margins you paid for. The right one makes ownership feel effortless.

Here’s what to look for — including a few things that don’t always come up in the sales pitch.

Understand What a Management Company Actually Does

Before evaluating options, be clear on the scope. A full-service aircraft management company typically handles:

• Crew recruitment, training, and scheduling — hiring your pilots, managing their recurrent training, and ensuring regulatory compliance
• Maintenance oversight — coordinating scheduled maintenance, managing your maintenance tracking program, and handling AOG (aircraft on ground) situations
• Charter operations — if you elect to place your aircraft on a charter certificate (Part 135), the management company markets and operates those flights
• Administrative functions — insurance coordination, hangar arrangements, fuel purchasing, and financial reporting to the owner

Some companies do all of this in-house. Others subcontract significant portions. Know which model you’re evaluating.

Check Their Safety Ratings — And Understand What They Mean

The two primary third-party safety auditing organizations in business aviation are ARGUS and Wyvern. Charter operators and management companies can hold ratings from either or both. ARGUS ratings run from REGISTERED to GOLD to PLATINUM. Wyvern’s primary rating for operators is WINGMAN.

A management company operating charter flights on your aircraft should hold a credible safety rating. These audits examine safety management systems, crew training standards, maintenance programs, and operational procedures. They’re not perfect, but they’re the best standardized benchmarks available.

Don’t take a company’s word for their safety culture. Ask for their current rating, when it was last audited, and whether you can review the audit findings.

Ask Hard Questions About Charter Revenue

If you plan to charter your aircraft to offset costs, the charter revenue conversation is where buyers most often get misled — not through outright dishonesty, but through optimistic projections that rarely materialize.

Management companies have a financial incentive to make charter revenue estimates sound attractive. It closes deals. But charter demand depends on your aircraft type, your base location, your aircraft’s availability window, and market conditions — none of which the management company fully controls.

Specific questions to ask:

• What charter revenue did owners of comparable aircraft in your fleet generate last year — not projected, but actual?
• What percentage of charter revenue goes to the owner versus the management company?
• Are there any fees, commissions, or costs deducted before the owner’s share is calculated?
• How are owner-priority periods handled — can you guarantee your aircraft is available when you want it?

The split between owner and management company on charter revenue varies widely across the industry. Understand the exact structure before you sign.

Read the Fee Structure Carefully

Management companies typically charge a monthly management fee — often ranging from $10,000 to $20,000 or more depending on aircraft size and services included. But the monthly fee is rarely the whole picture.

Common additional cost areas to scrutinize:

• Maintenance markups. Some management companies add a markup to third-party maintenance invoices. This is disclosed in some contracts and buried in others. Ask directly.
• Fuel programs. A well-run management company should be participating in fuel purchasing programs that reduce your per-gallon costs. Ask whether you benefit from those programs and how.
• Crew costs. Are crew salaries and benefits billed at cost or marked up? What happens when training costs spike in a given year?
• Administrative fees. Some contracts include fees for bill payment, financial reporting, or other administrative functions that owners reasonably expect to be included in the management fee.

Ask for a sample owner statement from a current client. A management company that’s transparent about costs will provide one.

Evaluate Crew Quality and Retention

Your crew is the most operationally critical relationship in your aviation program. The management company is responsible for recruiting, training, and retaining them.

Ask about average crew tenure. High turnover is a signal worth paying attention to — it often indicates compensation problems, scheduling issues, or a management culture that pilots vote against with their feet. A stable, experienced crew is safer and more operationally dependable than a revolving door of newer hires.

Ask how the company handles crew disputes or performance issues, and what your role as the aircraft owner is in those situations.

Understand the Exit Terms

Management contracts typically run one to three years with varying notice periods and termination conditions. Before you sign, understand exactly what it takes to leave.

Some contracts include significant termination fees. Others have provisions that make it difficult to place your aircraft with a different operator quickly. A company that’s confident in its service won’t bury you in exit penalties — and if the contract terms make leaving difficult, that’s worth noting before you commit.

The Bottom Line

Aircraft management is not a commodity. The difference between a well-run program and a poorly run one shows up in your annual cost statement, in how your crew is trained, in whether your aircraft is available when you need it, and ultimately in the safety of every flight.

Take the time to evaluate multiple providers. Ask the questions that don’t always come up in the initial presentation. Talk to current owner-clients if you can. And work with an advisor who doesn’t have a financial relationship with the management company they’re recommending.

The right management company makes ownership what it’s supposed to be. The wrong one makes you question why you bought the aircraft in the first place.

Holstein Aviation works with aircraft owners and buyers across every stage of the ownership process — including guidance on management company selection. Contact us to start the conversation.