In the financial world, jet hedging is about airlines controlling fuel costs. It is like buying insurance so you can reliably budget your expenses and protect against rising fuel costs that could cost you many millions of dollars unexpectedly. For you, it is about controlling your flight costs for chartered air services. If you already possess a jet card or are a fractional owner of a jet, it is those per hour costs that really put a strain on the flight budget. Jet hedging, in this case, is having another option.
A small twin-engine jet, such as a Hawker 400 XP, costs close to $6,000 per hour to operate, using a prepaid jet cards. A heavy jet, such as a Gulfstream G450, costs about $18,000 per hour, making a flight from California to the east coast about $70,000. Taking the Hawker a short hop from Mississippi to Florida is about $11,000. Short jaunts, even in the big planes, can be cost effective when using a prepaid jet card. However, longer flights can cost almost double.
Jet hedging lets you use your card at your discretion, but it gives you an alternative to use other jet chartering options to save you a considerable amount of money for those flights that are not the best for using a prepaid jet card. For example, the cost of taking a Gulfstream G450 from California to the east coast can be cut in half using jet hedging to charter a flight not using the hours available on your card. Taking advantage of a jet hedging program lets you have your flight schedule examined to determine the most cost-effective means of flying. Over a single year of flights, this could save you hundreds of thousands of dollars in chartered jet travel costs, depending on the where you fly and what you fly in.
Your prepaid card fixes your costs with an hourly rate, fuel surcharges and applicable taxes. This gives you the overall hourly rate for flying, depending on the plane you will be flying in. Jet hedging is a program that will compare your prepaid jet card rates against chartering without using your hours. You then choose the way you want to fly and take the savings to apply elsewhere.