Aircraft management companies offer significant benefits to jet owners. Your relationship could reduce the hassle of owning an aircraft, including complying with ever-changing regulations and high costs.
Since aircraft management services are so valuable, the market is expanding. In fact, it’s expected to grow at a CAGR of 6.8% between 2026 and 2032. With so many companies offering these services, it can be hard to choose the right provider.
In this comprehensive guide, we’ll explain what aircraft management services are, how they could benefit you, and how to choose the right partner for your jet.
What Is Aircraft Management?
By hiring an aircraft management company, you’re outsourcing all of the day-to-day operational, financial, and regulatory responsibilities associated with owning a jet. You maintain your ownership, but someone else handles the details.
Self-management means you tackle all of the details associated with an aircraft. You don’t need to pay an outsider in this model, but you’ll spend a lot of time and effort keeping your aircraft operational and compliant.
As aircraft technology and regulatory environments become increasingly complex, third-party management becomes more and more common
For many owners, reducing hassle is a key benefit of using aircraft management services.
But experts explain that owners should also see significant savings in elements such as these:
- Insurance
- Hangar fees
- Fuel
- Ground transportation
- Catering
The scope of true aircraft management is vast, encompassing everything from regulatory compliance and crew welfare to maintenance logistics—a true labyrinth of moving parts. Partners like Element are essential because they integrate these complex functions, drastically simplifying the owner’s day-to-day oversight. This streamlined support allows us to focus on the asset’s well-being and unlock its potential for revenue generation efficiently.
Core Components of Aircraft Management
Every aircraft management company is different, and as the market continues to grow, companies look for new and innovative ways to stand out.
However, most offer the core set of services outlined here:
| component | focus areas | why it matters / challenges |
|---|---|---|
| Maintenance, Inspections, & Airworthiness | Scheduled vs. unscheduled maintenance, tracking “last done / next due,” continuing airworthiness oversight | Critical to safety and regulatory compliance; downtime, vendor coordination, and unexpected repairs are frequent challenges |
| Crew Management & Staffing | Recruitment, training & certification, crew scheduling, rest & duty compliance | Crew costs are significant; continuity and flexibility in scheduling directly affect reliability and client satisfaction |
| Flight Scheduling, Dispatch & Trip Planning | Route planning, overflight/landing permits, fuel stops, repositioning | Poor planning inflates costs (fuel, positioning) and increases operational risk (delays, crew positioning issues) |
| Regulatory, Compliance & Safety Oversight | Compliance with aviation authorities (FAA, EASA, etc); audits & safety programs; subcontractor oversight | Noncompliance can lead to fines, grounding, reputational damage; maintaining records & audit readiness is complex |
| Insurance, Risk & Liabilities | Hull, liability, war/hull-war risk; underwriting factors; insurance strategies | Insurance is a large, fixed cost; management practices and safety record influence premiums and contract terms |
| Financial Services, Accounting & Reporting | Expense tracking, cost allocation, reserves, forecasts; reporting to owners | Transparency is expected; poor financial reporting erodes trust; budgeting for unpredictable costs is essential |
| Facilities, Hangar & Ground Support | Hangar leasing, ground handling, parts logistics, vendor relationships | Availability of facilities and vendor quality affect operational reliability; parts sourcing, ground support delays are risk zones |
Maintenance, Inspections & Airworthiness
Every aircraft needs maintenance to fly safely and meet regulatory demands. An aircraft management company will perform scheduled maintenance and step in when something breaks unexpectedly.
All maintenance must be tracked, including paperwork that details when something was last done and is due again (LDND). The company may also use equalized maintenance strategies to reduce downtime.
All strategies should help to reduce maintenance costs while ensuring safety and compliance.
Crew Management & Staffing
An aircraft management company should handle the hiring and training of new staff, ensuring that an appropriate crew is ready at all times. The company should also manage crew schedules to ensure rest and duty requirements are met.
Professional companies will ensure that your flights are staffed by trained, experienced crew who stay with you from trip to trip, providing continuity and consistency. Without this step, you could be grounded due to a lack of staff or have a poor flight experience with an untrained crew.
Flight Scheduling, Dispatch & Trip Planning
Your management company should optimize your flight paths, secure overflight/landing permits globally, and slot coordination at busy airports. Your company should also include plans for fuel stops and ground services.
Steps like this can make a flight run smoothly. They can also help optimize costs by ensuring you purchase fuel at the right time and minimize delays.
Regulatory Compliance & Safety Oversight
Your management company can navigate critical regulatory oversight, such as FAA, EASA, and ICAO obligations. That means your company will keep detailed records, audit performance, plan for emergencies, and more.
Insurance, Risk & Liabilities
Several types of insurance are available for aircraft, including hull insurance (physical damage), liability insurance (third-party claims), and specialty coverage (war risk).
Management companies can use the portfolio effect to leverage their scale and negotiate better premium rates for owners. A provider’s strong safety record can also positively influence rates.
Financial Services, Accounting & Reporting
All fees and costs should be carefully tracked and reported on a schedule you set, such as monthly or quarterly. These documents can help you with budgeting, forecasting funds, reserving funds, and maintaining transparency with stakeholders.
Facilities, Hangar & Ground Support
Large companies can offer significant cost savings on aircraft storage, including hangar leasing and ground handling. They can also leverage their connections with vendor networks to secure discounts on parts and fuel.
Discounts can take the form of line support for quick, essential services (such as fueling and lavatory servicing). They can also come through base support, which refers to storing an aircraft for a long period.
Charter Operations & Revenue Management
Few people need to use an aircraft every day. An aircraft management company can transform downtime into financial gain through charter programs.
A program like this ensures that your jet is always working for you, even when you’re not in the air. However, you might sacrifice some flexibility, and there are wear-and-tear costs involved.
Owning an aircraft is a significant commitment, but when managed correctly, can be seamless and enjoyable experience. . Strategic chartering is the most effective way to offset operating expenses, enabling the aircraft to generate meaningful revenue when the owner is not using it. Ultimately, smart management turns idle time into productive financial contributions.
How Charter/Revenue Programs Work
A charter program begins with a Part 135 certificate, ensuring that you can use flights to generate revenue legally.
Several financial models exist, such as these:
- Revenue share, in which the owner gets a percentage of the gross charter revenue
- Net rates, in which the owner receives a fixed rate after all expenses are paid
- Fixed hourly, in which the owner gets a specific amount for each hour the aircraft is flying
Risks & Considerations With Chartering
While a charter program can earn you money, risks exist. Your aircraft will experience some wear and tear, and you will need another insurance policy to protect your finances. You’ll also face a different regulatory environment, and your profits are subject to market fluctuations.
The demand for your services can be variable and seasonally dependent, as can the overhead charges you’ll incur. Some companies smooth out these fluctuations through their billing and revenue models.
Cost and Pricing Models for Aircraft Management Services
Aircraft management companies should be upfront with clients about fees and pricing. Understanding what drives those costs can help smooth negotiations if those fees increase over time.
Major Cost Drivers
Factors that could cause the cost to increase come in two areas:
- Fixed costs, such as crew salaries, hangar rent, and insurance
- Variable costs, such as fuel, landing fees, and maintenance programs
Your management company may need to raise your costs due to fluctuations in some or all of these factors.
Fee Structures & Contract Models
Some companies use a flat-fee model (management fee and % of charter rate), ensuring a predictable rate that covers all core services. Others use a percentage of your operating budget to set fees or a negotiated markup for charges you incur.
Common contract features include minimum guaranteed hours for charters, maintenance reserves held in escrow, and cost-sharing practices.
How to Choose an Aircraft Management Partner
It’s crucial to choose the right partner to manage your aircraft. This entity is responsible for your profits and reputation, so it’s wise to choose carefully.
The National Aircraft Finance Association recommends asking the following questions before choosing an aircraft management company:
- What services do you offer?
- How long have you been in business?
- Who are your employees, and what is their experience in the industry?
- Can you provide your charter certificate and other paperwork for verification?
- Does an independent third-party audit you?
- Will maintenance be performed in-house or outsourced?
- Are fleet discounts available?
- What are your hiring and training standards?
Your potential partner should provide a contract that includes an exit strategy, a reporting cadence, audit rights, and your access to data. Ask your legal team to review the document before you sign. You should also check the company’s references.
Get Started With Element Aviation
An aircraft management company can maximize your profits and reduce your hassles. But choosing the right partner is crucial.
At Element Aviation, we utilize our subsidiary, M&N Aviation, which specializes in clear and comprehensive communication. You’ll understand our responsibilities and billing structure before you sign, and you’ll never experience any nasty surprises.
Contact us to see why so many people choose us for their aircraft management needs.
Fact Checked & Reviewed By:
Chris Blanchard has spent more than two decades in the private aviation industry. He began his career with an on-demand charter operator and played a critical role in transforming a small operation into one of the largest and most successful in the country. His experience and commitment to excellence make him a trusted innovator in the field of private aviation.
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Last modified 04 Dec 2025