How Jet Hedging Works

When you think about hedging as it relates to planes, you probably think about fuel hedging, which is something the commercial airlines do a lot of as they try to buy fuel ahead of time at a set price to provide consistent costs. Private jet owners engage in fuel hedging, too, but there is another type of hedging when it comes to private flying.

What Is Jet Hedging?

When people don’t want to or can’t afford their own plane, they can buy into fractional jet ownership, meaning they get a certain amount of use of a single plane or multiple planes in one category, such as small, medium or large. These programs offer a lot of advantages, but they also have some limitations. Jet hedging takes the process a bit further by allowing those with fractional ownership to have more control over what type of plane they have. For example, if someone bought fractional ownership in a small jet, say an eight-seater, but needed a larger jet for a trip, a hedging company could help.

Advantages Of Jet Hedging

With jet hedging, you get more control not only over the type of aircraft you fly in but also the way the seating is configured, how old it is and what its customer satisfaction rating is. If you need a larger jet or one that has a bigger range than the one in which you have ownership, hedging can make it happen. And though hedging sounds as though it would add costs onto what you already spend for your fractional ownership, in many cases such trips can actually be a better value. Hedging companies buy empty legs on other jets, which they get at a discount.

Private jet travel already has many advantages over commercial air travel and being able to do private jet hedging is just one more advantage. You can use hedging to make you air travel even more convenient.