integris-aviation-consultancy

Aircraft Resourcing Options for Family Offices

Sun, 26 Apr 2026 04:11:05 GMT

Summary

Private aviation's technical aspects like speeds, costs, maintenance intervals, salaries, and scheduling are important, but its strategic aspect is more crucial. It is the foundation of having a robust family aviation program rather than just an aircraft. This article discusses the different options available to family offices and provides key considerations for selecting the best one for their needs, covering the broad categories of family office aviation.

Choices, Choices

New visitors to the United States have many interesting perceptions of our country, but a common refrain I have heard many times is the incredible number of shampoo choices in the supermarket aisle. It is almost too much to take in for those new to a capitalistic society.

Private aviation options may not number the choices offered in the shampoo section of your local Target, but there are a dizzying number of choices available-and each one has its rightful place in the market. In the United States, there are over two hundred jetcard choices, for example.

There are also over 2,000 certificated aircraft charter operators. Hundreds of management companies exist in the United States, from large operators with hundreds of aircraft under their watch to Mom & Pop companies who only operate three to five aircraft.

So where does a family office start when selecting the right option (or options) when it comes to serving their family units? What is the best way to go about this, and what pitfalls are there to avoid?

In this article, we will discuss the broad categories that exist for family office aviation and some of the key considerations with each one. When you finish reading this, you should have a better understanding of where the boundaries lie and how to factor in best practices in selecting the right choice for your family office or corporation.

Light Usage-A Good Place to Start

The vast majority of family offices and ultra-high net-worth individuals don't use private aviation in a consistent, well-thought-out manner and most certainly don't own or lease their own aircraft. Therefore, most family offices are initially probably light users, meaning 25 to 50 hours per year. This category is what we call Ad Hoc Charter, or On Demand Charter. It is equivalent to a trip every one to two months and is typically used for leisure travel.

One must choose the operator wisely, as over 2,000 air charter operators exist in the United States alone. What is the safety record of the charter operator? Do they have a standard contract available that gives you guarantees in case of trip cancellation or refund policies? Are you able to list the passengers as additional insured persons on the insurance policy and request a waiver of subrogation?

All of these are key considerations when chartering on an "ondemand" basis. With a knowledgeable aviation consultant on your side, you can navigate all of these issues and ensure your interests are protected so you can do what you want the most-get to your destination safely and enjoy time with friends & family.

Charter Packaged Hours (JetCards)

As On-Demand Charter has evolved over the years, program benefits have grown, and, as can be expected, those who sign up for more hours up-front get preferred access during holidays and flexibility in choosing aircraft depending on the type of travel.

This has led to the rise of companies like Wheels UP, which follows a membership model reminiscent of Costco. For an annual fee, members get access to aircraft at preferred rates. Part of the benefit is access to Wheels Down, where all manner of reservations can be made for cars, restaurants, events, and more. It is a concierge service that is standard among other membership programs like NetJets, VistaJet, and Flexjet.

If you know you need 50 to 100 hours per year and are willing to pay up front for hours, the benefits could be very interesting for your family office, giving your family units predictability and the ability to simulate aircraft ownership with much of the standardization without the monthly overhead.

Fractional Shares

The first on-ramp to ownership is fractional ownership. This model was first introduced by NetJets in 1986 with a fleet of ten Citation aircraft, and the rest is history. Borrowing from the hotel timeshare craze in the 1980s, Netjets aimed to bring the same kind of "shared ownership" experience to the aviation market.

This option continues to be very popular today and is usually sought after by family offices, corporations, and high-net-worth individuals who want an ownership experience but who aren't quite ready to be fully burdened by all of the costs incurred by an aircraft owner.

For corporations, the share is a depreciable asset and is able to be resold after a period of time (usually five years). Fractional companies sell shares in 1/4, 1/8, and 1/2 increments and charge a monthly management fee to cover crew, insurance, and maintenance costs. There is also an hourly flight charge to cover fuel and other fees.

If your families are flying 100 to 200 hours per year and want a very predictable flying experience and a "one call does it all" option, then fractional ownership might be for you. If you own a corporation, tax benefits may also exist.

Leasing is In

While the vast majority of full-time operators of aircraft own their assets, many are choosing to lease for a variety of reasons.

This option is for the family office or corporation that is ready for full-time control of an aircraft but for specific reasons does not want to actually own the asset.

Several reasons exist for this: first, a family office may wish to avoid asset volatility and reduce upfront capital investment. Second, a family or corporation may want to only pay use tax by the hour rather than a large, one-time sales tax on a comparable purchase.

Or perhaps they just want to "try before buying" - using an aircraft for a year or two before committing to that model long-term.

These and other reasons are driving more family offices to lease rather than buy. It is a great option for those flying more than 200 hours per year but not quite ready to commit for a longer period of time.

Whole Ownership

The opposite end of the spectrum from on-demand charter is whole ownership. This is where family offices and corporations end up after carefully determining that they want full control of their assets, can use the aircraft full-time, and are ready for the expense & responsibilities of this commitment.

High net worth families are rarely composed of one family unit but instead can be anywhere from four to ten family units who share amenities managed by the family office-from vacation homes to marine assets to aircraft.

Much more than just an aircraft, what the family has, in reality, is an aviation program in order to facilitate the lifestyles of the family members.

Aviation provides the random-access, on-demand mobility necessary to allow each family member to get more out of their time, allowing them to do more by leveraging their time accordingly.

With whole ownership, the family or corporation has complete freedom to operate the aircraft themselves or hire a professional management company to run the whole aviation program for them.

Some reasons for using a management company are bulk discounts on fuel, insurance, parts, and maintenance.

Other reasons include a 24/7 operations & dispatch center, maintenance control, and safety oversight. Streamlined hiring processes exist for crewmembers, and backup aircraft can be sourced in the event your plane is in maintenance or already flying on another trip.

Reasons for having an in-house flight department are maintaining more control of the operation, which may just reflect the philosophical bent of the family: owning versus outsourcing.

No matter which option is chosen to operate the aircraft, at this level the family has complete control of their aviation asset(s), and with a fair use policy, the aviation program is central to the amenities offered by the family office to its various family units.

Other Considerations

No matter what aviation option (or options) you choose, there are several things that family offices can do to mitigate risk and establish procedures for fairly accessing lift.

One of the most important things is to ensure the proper legal framework is in place to operate a fractional share, or a leased/wholly owned asset.

An experienced aviation attorney will be able to ensure all the necessary agreements are in place and determine if additional legal entities need to be formed. Federal and state laws come into play, and there are many nuances that are not worth risking by going it alone.

Another tool already touched on here is that of a use policy that will govern how the aircraft will be accessed by family members. What approvals are necessary to fly, how chargebacks are accomplished, what happens if the plane is already booked, and how insurance is written: all of these and other considerations can be placed into a fair use policy that will provide clarity and reduce conflict among the family units.

Yet another consideration is the tax consequences of each resourcing option and how best to structure the operation in light of this.

Private aviation has several very competent aviation tax firms that can be engaged to ensure that taxes aren't left to chance and money isn't left on the table.

An important tool that a family can use, no matter which resourcing option is selected, is that of the Emergency Response Plan (ERP). By putting in place a plan in the event of a mishap, the family can designate ahead of time one spokesperson for all communications and determine the messaging on their terms. This is extremely important to protect the privacy and reputation of the family during an event that will take twists and turns even under the best of circumstances.

By preparing and practicing for the unlikely-but-possible, a family or corporation can take preemptive steps to ensure their interests are protected should an accident or incident occur.

All of these and other considerations can be discussed with a competent, experienced aviation advisor contracted to protect the interests of the family that is interested in creating a robust aviation program, not just owning an aircraft.

Conclusions

The most important thing in a family office is the family, and private aviation is a key strategy that enables the family units to live out the legacy of the founders.

By using a best-practices approach and enlisting the best professionals to advise on several key issues (tax, legal, insurance, operations, technical, and transactions), family offices can ensure they are doing everything they can to create a robust aviation program-not just own or operate an aircraft.

There are several on-ramps to private aviation that are easy to access: on-demand charter for light users, jetcards (packaged hours) for those able to pre-pay, fractional shares for those wanting an ownership experience without all the overhead, and whole ownership/leasing for families wanting full control of the asset so they can customize their aviation program to their needs.

Having an experienced aviation consultant on your team is invaluable in navigating the myriad of choices, options, and considerations-as well as making introductions to the very best aviation professionals who are at the top of their game. By using the same careful, thoughtful approach employed in other areas of the family office, private aviation can be leveraged as a lifestyle multiplier for the family units served.

Mitigating the risks and maximizing safety & service can be key components of any aviation program designed to enhance the lives of family members as they live out the legacy of the founders for generations to come.

The Role of Private Aviation In Family Offices

Sun, 26 Apr 2026 04:00:18 GMT

Summary

For family offices, private aviation is not just about speed, cost, and scheduling, but more importantly, it is a tool to build and sustain family values and legacies. Developing human capital and defining shared family values are crucial for multi-generational success. Private aviation provides the mobility necessary to achieve these objectives, making it an important tool for families who are building generational wealth and leaving a lasting impact. Before and after a liquidity event, families must spend time defining their purpose and long-term impact, separating those with a lasting legacy from those who may diminish their impact over time.

An Aircraft or An Aviation Program?

Much of the discussion around private aviation revolves around its technical aspects: speeds, costs, maintenance intervals, salaries, and scheduling. While these operational issues (the how’s of private aviation) are important, it is even more important that family offices delve deep into their private aviation program’s strategic aspects (the why’s), as an aviation program is entirely built on this foundation of strategic intent. Strategy is the difference between simply having an aircraft and having a robust family aviation program.

Aviation is not an end to itself—few people get on an aircraft simply to go for a ride. It is, instead, a means to an end. Aviation is a tool by which greater purposes are accomplished. Defining those purposes is critically important for a high net-worth family, especially one that has just gone through a liquidity event.

While family offices have traditionally prioritized managing financial capital as central to their advisory role, increasing emphasis is being placed on developing human capital in the family, which is just as important as the financial side. Human capital development is critical to providing an environment in which families can continue to succeed and thrive long-term.

At the core of these two kinds of capital (human and financial) is a deeply held set of shared family values, and the family business is tasked with driving alignment around these values in order to achieve multi-generational success.

Private aviation is a critical tool in providing the mobility necessary for a family to accomplish these objectives and is the reason so many families have invested in robust aviation programs that go way beyond simply providing convenient transportation between points A and B.

For families who use aviation in their company’s pre-liquidity stage, the overarching purpose is to build something substantial and maximize its value without unduly sacrificing personal time. However, for the family in the post-liquidity event phase, it is essential to define what they now stand for and their lasting purpose. It is not enough to simply manage the accumulated wealth or pretend that the family doesn’t face new existential questions, because they do.

Families who are intent on building generational wealth and long-lasting legacies spend a considerable amount of time defining their purpose and their long-term impact both before and after a liquidity event. This effort separates families into those who intentionally create a long-term legacy and those who could steadily diminish their impact in a matter of generations.

The Role of Private Aviation

So, what is the role of private aviation in the family office? Quite simply, it is the primary mobility tool the family uses to live out its founders’ legacy. The vast majority of founders (Generation 1) built their wealth based upon a set of values and principles, which will become their legacy.

That legacy is played out in a series of activities that reflect the founders’ inner priorities, and those activities require mobility. While airline travel can provide some freedom of movement, the value it can provide is limited, given the multiple connections, risk of delays, and inability to maintain privacy in public settings. Private aviation can provide security, flexibility, and privacy like no other mode of transportation and is thus the best way to facilitate the activities that promote the founders’ legacy.

In broad categories, these activities can be described as: 1) personal travel, 2) business interests, and 3) philanthropic efforts. Personal travel covers everything from family trips abroad to regular commutes to other family homes. It could also involve bringing college kids home for the holidays—anything that involves family or leisure can be categorized as personal travel. Often, this category accounts for the greatest amount of travel in the family office.

The second largest number of trips usually revolves around furthering business or investment interests, from investing in a startup to sitting on a board. Attending conferences also falls under this umbrella, as does anything else involving business travel on the family aircraft.

Lastly is travel related to philanthropic or charitable causes. Such travel might include fundraisers, site visits, board meetings, or even providing empty seats for nonprofits like Corporate Angel Network, which is a group that fills empty seats on private aircraft with patients traveling to doctor or hospital visits.

Another aspect to the role of private aviation in the family office is where it sits under the overall governance structure. Oftentimes, the founder has had control of the family or business aircraft for decades, and it sits outside the purview of the family business governance structure.

This arrangement can introduce serious risks to the family from a legal, financial, and reputation standpoint because it escapes oversight and becomes difficult to align aviation with the overall family objectives.

By bringing the aircraft under the umbrella of family office governance, best practices can be applied to create a more robust aviation program. This approach will provide for all eligible family units’ transportation needs, something that occasional charter or fractional usage cannot offer.

A Shared Family Amenity

Many times, aviation falls under “Shared Amenities” in the family office structure, but it could also fall under “Lifestyle” or “Personal Assets.” No matter where aviation is placed under the governance structure, it can be operated in coordination with tax, legal, risk management, human resources, and accounting, greatly facilitating oversight as the aircraft transitions from mostly being used by the principal to becoming part of a larger aviation program used by multiple family units (Generations 2 and 3).

Any family aviation program needs to have a very well-defined use policy in order to avoid misunderstandings and conflicts among the different family units. This policy will address everything from double-bookings, chargebacks, and annual allotted hours per family unit to empty legs, third-party charter usage, and much more.

It is also important for a small committee of family members and family office personnel (usually two or three people) to meet with the aviation director monthly to discuss upcoming maintenance, safety concerns, aircraft improvements, personnel needs, hiring, technology trends, and any other issues pertaining to the aviation program’s operation.

Aviation needs to be treated with the same seriousness as any other aspect of the family office, and having expertise at the table is invaluable to the program’s long-term success. By running aviation like a business unit, with the same standards of oversight and governance, family offices can ensure that they leave nothing to chance from a legal, financial, or risk standpoint, which is critical to providing safe mobility that furthers the founders’ legacy over the course of time.

Legal Considerations

Other key aspects of a successful aviation program are robust safety policies and well-defined legal frameworks for the operation. Each family office situation is unique and requires careful analysis of what is required from a legal standpoint to ensure no regulations are broken when multiple entities use the aircraft.

An aircraft without the proper legal structures in place can place the family in serious legal jeopardy and could affect insurance coverages in the event of an incident or accident. A very specific legal framework that is tailored to the aviation operation and reviewed regularly is a critical part of family business oversight.

Even if the single or multi-family business does not have the in-house expertise necessary to pull these pieces together, external experts are available who are well-versed in meshing these different aspects seamlessly for any given situation. Aviation-specific legal counsel, tax specialists, and aviation consultants are invaluable in addressing both macro and micro issues and ensuring nothing is missed.

Preparation is Key

The Emergency Response Plan (ERP) is an important tool a family can use no matter how their aviation program is structured. By putting a formal plan in place in the event of a mishap, the family can designate one spokesperson ahead of time for all communications and determine the messaging on their terms. Many agencies, insurers, and concerned friends and associates, as well as the media, will need regular updates with pertinent and accurate information.

Careful messaging via one point of contact is extremely important to protect the privacy of everyone involved during an event that will take twists and turns even under the best of circumstances. By preparing and practicing for the unlikely-but-possible, a family business can take preemptive steps to ensure their interests are protected should an accident or incident occur. In the process, they can protect the family’s reputation both internally and externally.

Conclusions

In the recently published 2022 Citi Private Bank Family Office Survey ( http://citi.us/3UWNYrS ), 43% of G2 and G3 family members listed family unity and continuity as priorities. Active management of investments and philanthropy also rated high on the priority list—all considerations that require mobility-intensive activities in addition to the expected personal travel.

Private aviation is thus a key resource for families that are still running the founders’ company or are finding new purpose post-liquidity-event. Operating a standalone aviation program under a single- or multi-family office governance structure is the best way to ensure that all disciplines—both in-house and those brought in from external resources—come to bear.

By ensuring safe and flexible transportation that supports activities informed by the family’s agreed-upon values, the first generation’s legacy can be carried forward decades into the future.

The Unique Nature of Family Office Aviation

Sun, 26 Apr 2026 03:38:01 GMT

Summary

Family office aviation is a growing trend in which families use private aviation to serve their specific needs. As more families establish family offices, they are taking on the responsibility of managing their own aviation programs. This presents unique challenges that must be carefully considered when staffing and operating a family aviation program.

The Origins of Private Aviation

The private side of aviation has always been somewhat of a mystery. Ever since corporations and high net-worth individuals began using decommissioned military-executive transport aircraft in the 1960s, privacy and convenience were the main reasons for such an investment. The ability to go anywhere, anytime on their own terms was breathtaking, especially at that time when aviation had only existed for just over half a century.

Fast forward to the present time and we see a much more evolved landscape, with clear threads and utilization strategies developing rapidly over the last thirty years. Corporations most certainly have embraced private aviation, using it to accomplish their strategic objectives by leveraging their key employees' time.

In fact, the vast majority of Fortune 500 companies use private aircraft, many owning one or more units and running entire departments that are staffed by professionals who are at the top of their game. Many companies would simply not be where they are today without the use of a private aircraft. Even Warren Buffett once famously said that he went from calling his private aircraft “The Indefensible” to “The Indispensable.” Berkshire Hathaway went on to buy NetJets, the world's largest fractional ownership company, which today boasts a fleet of over 800 aircraft.

The Rise of Family Office Aviation

But in parallel to the corporate use of aviation (also called business aviation) is family office aviation–private aviation used in service of one particular family with one or more family units sharing the amenity.

As family offices have gained popularity in the past ten years, more are taking on the responsibilities of overseeing the aviation program for their family. This has brought unique challenges that are not insurmountable but must be carefully considered when staffing and operating a family aviation program.

Scheduling Can Be Challenging

One of the key differences between business and family office aviation is that of scheduling. Whereas most business occurs Monday through Friday, this allows a certain predictability when scheduling crews and offering quality of life, which is very important for employee retention these days.

Many larger corporate aviation departments have gone to a quasi-airline-style scheduling model, with guaranteed days off and the ability to bid a schedule that fits with each crew member's individual situation.

With family office aviation, just the opposite may be true–many trips occur on weekends and holidays and may involve being on call more than the counterparts who fly for a company.

Financial Considerations

That leads to another key difference: staffing. When a family is staffing their aviation department, it is very important that all crew members have realistic expectations of what is involved with the schedule. Vetting candidates is extremely important in order to find the best personality fit with the family culture. Set the right expectations for how the family travels and how they make changes and how last-minute those may be. The differences may be subtle, but one starts to see some stark contrasts when it comes to business aviation and when flying for a family.

Think of it as the difference between staffing a trucking company and a fire department. The trucking company will seek candidates who value fixed schedules, completing a mission on time, and guaranteed time off. A fire department, though, will want people who are more flexible, able to handle periods of waiting while maintaining a great attitude and able to jump into action when called upon with short notice.

By putting the right people in place for specific demands of the situation, a family can build a flight services team that can function at a high level no matter what the circumstances, since those will have been anticipated and factored in from the beginning.

The Importance of Oversight

One final big difference between a corporate flight operation and a high-net-worth family is that of oversight. A corporate aviation department will have access to all of the built-in functions of the company–from HR to Purchasing, Finance, IT, Risk Management, Facilities, and an executive team hired to make complex decisions. The aviation department becomes an extension of the company with the support of all of these departments orchestrated through the aviation director.

With the family office, these functions may not be as robust as those found in a corporation. While the family flight department will be staffed by highly competent aviation professionals, the family office itself may not have the experience or framework to deal with all of the issues that a corporation is set up to handle.

One solution is for the family office to have a highly experienced aviation advisor to help talk through everything from budgeting to strategic planning, fleet planning to use policy, hiring standards, safety, risk management, tax, and much more. It can get complicated if the aviation professionals at the hangar are not well versed in these issues and neither is the family office team.

This can present some real challenges, which can fortunately be mitigated by hiring a competent aviation consultant on a project or retainer basis to advise the family, the family office, and the aviation department through these different issues in a coherent, coordinated way.

Conclusions

Today we have a well-evolved private aviation landscape with three well-defined strands: corporate aviation, fractional ownership & charter, and family/UHNWI aviation. Fractional ownership is the most structured, followed by corporate aviation. Family office aviation runs the gamut from a structure standpoint.

If they lack the expertise and structure to meaningfully work through all pertinent issues, then family offices can tap into the expertise of a specialized aviation advisor who can help them create an overarching strategy while also zooming in to the granular details.

With a focus on best practices and risk mitigation, any family office can function at the highest levels of safety while providing the flexibility required by the family units they serve.