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Understanding The Basics of Jet Hedging

Understanding The Basics of Jet Hedging | The Early Air Way

Choosing to travel by private jet makes sense in a number of scenarios. A business owner who needs to get to a major client and seal a deal before the competition moves in will find this works better than trying to grab a commercial flight. When there’s the need to get to a loved one in trouble without delay, a private jet is the only way to go. With these scenarios, there’s still the need to consider cost. That’s where the idea of jet hedging comes into the picture.

What Is Jet Hedging?

There’s really nothing complicated about jet hedging. It’s a process that allows you to determine which of the different strategies you use to travel is the most economical as well as the most practical.

Hedging in general is a term that is used in many different situations, including the world of investing. In this type of application, you are taking a look at the available data and qualifying it in some manner. The plan is to limit your choices to the ones that are the most likely to produce the desired results. As this relates to travel, jet hedging allows you to look at the different options for using private jets and settle on the method that will get you where you need to go and save money at the same time.

How Does It Work?

Many people who utilize private jets on a regular basis already have some kind of program in place. Perhaps you have a fractional share program that allows you to be part of a group that owns the private jet. In return for your partial or fractional interest, you are able to use the jet for a reduced cost. Maybe you belong to a pre-paid jet program that provides benefits that reduce the cost of travel. If you do fly on a regular basis, there’s a chance you are involved with multiple programs.

The idea behind jet hedging is to determine how to save the most money on your upcoming trip. Based on how often you fly, the amount of baggage you take along, and several other factors, it’s possible to determine your average annual flight activity. Using that average, hedging allows you to determine if utilizing your fractional sharing program is the best bet, or if you would do better to make use of your pre-paid jet card. Depending on the outcome of the comparison, it may be in your best interests to go with an on-demand air charter arrangement for this trip.

Can’t I Do This On My Own?

In theory, you could manage your own jet hedging without the aid of a third party. In practice, the process can be quite difficult. It’s too easy for you to overlook some aspect of your typical travel pattern and come up with skewed results. That in turn will mean you end up spending more money for your trip than you really needed to do.

Perhaps you typically travel during peak times, but this trip will occur during what is known as empty leg flight hours. Forget to add that into the equation and your hedging effort will not provide the best results. By contrast, a professional who knows how to ask the right questions and evaluate all the available data will ensure you do make the right choice.

If you would like to learn more about jet hedging, talk with a professional who can show you examples of how to break down the expenses and compare all your programs side by side. When you see the annual savings that will result based on your usual flight usage, using hedging will make a lot of sense.

 

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