Capital Jet Management Opens Office at Santa Ana Airport

February 5, 2018 in Announcements

SANTA ANA, Feb 5th – Capital Jet Management, a new firm focused on private aircraft management and jet charter, has announced the commencement of operations from its Orange County base. The company was founded by industry veterans, John Jorgensen, Cliff Bruner, and Ken Webster. Together they formed Capital Jet Management to service aircraft owners desiring a more personalized aircraft management experience.

Ken Webster, Managing Partner explains, “Looking at the private aviation industry in the United States there has been exceptional growth in the last few years. As the economy has recovered there has been consolidation between many of the operators in Southern California. 10 years ago there were dozens of management companies to choose from whereas today there are really only 4 or 5 large firms. We have identified an opportunity for aircraft owners and private jet charter customers who are looking for a more personalized experience.”

The company is independently owned with no operational or financial commitments to any MRO, Manufacturer, or FBO provider. “This is really key to what we are trying to do. Our goal is not only to manage your aircraft, but to be your personal flight department. The needs of each individual aircraft is our primary focus. Unfortunately some of the industry has moved away from that. We want to return the industry to a place where an aircraft owner can get the personalized service they deserve.”, said John Jorgensen, Director of Operations.

The three founders are all industry veterans each with a different area of expertise. Cliff Bruner has over 20 years of maintenance experience. John Jorgensen has 20 years of operations and training experience. Ken Webster has extensive international flight and management experience. “We have all worked long enough in aviation to have a idea for how we think things ‘should’ be run. We got together and realized the only way to deliver the level of service we were all aspiring for was to do it ourselves.”, said Cliff Bruner, Director of Maintenance.

The company has opened its main office at Santa Ana’s John Wayne Airport. With offices in Newport Beach and Ontario.

About Capital Jet Management

Capital Jet Management, or CJM, provides boutique aircraft management and jet charter services to clients within the United States. CJM manages a fleet of aircraft primarily based in Southern California, with offices at Santa Ana Airport. CJM operates under FAA Air Carrier Certificate Number 5GCA573N.

What To Look For In An Aircraft Management Company

March 12, 2018 in Aircraft Management

There are no shortages of aircraft management companies in Southern California. Each has its pros and cons. A larger aircraft management firm can provide you with cost-effective economies of scale to reduce your costs of ownership. Their relationships with FBO chains can drive lower fuel prices, their relationships with insurance companies can help reduce insurance costs, and their existing customer base can provide instant charter revenue on your aircraft.

It sounds like every aircraft owner should place their aircraft with a larger management firm then right? Well not so fast…

The Larger Aircraft Management Firms

There are plenty of downsides with the larger aircraft management firms. Their large size also means the revenue they must generate from your aircraft is higher than a smaller company. They might make them push less than optimal charter flights for your aircraft to reach revenue targets. That relationship with an FBO chain that saves you money in Teterboro might cost you more money in Van Nuys because their agreement forces all aircraft to only use that FBO chain. Most of all if you are just one of 100 aircraft under management you might be treated as ‘just another owner’. Finally, most larger aircraft management firms have specific procedures in place for monthly management and owner flights. Given their size they are usually less flexible when it comes to specific owner requests for special monthly reporting and operational needs.

The Smaller Aircraft Management Firms

Being a customer of a smaller management firm can also have its downsides. While most fuel pricing advantages have been eliminated through the use of contract fuel, partnering with a management firm that also owns FBOs will ensure you are getting the best rates on fuel while at company FBOs. Smaller aircraft management firms can provide a higher level of customer service than the larger firms. Smaller aircraft management firms are also usually more flexible when working with your accounting and tax professionals to develop custom reporting and proactive budgeting.

In the end, it comes down to preference and people. 

Finding a trustworthy company to manage your aircraft is not an easy decision. There is an abundance of companies each with their pros and cons. Invest the time required to get to know the management and employees of the company that will be managing your aircraft, as they will be the ones safeguarding your asset.

Citation Sovereign Direct Operating Costs

January 11, 2018 in Aircraft Management, Aircraft Operations

The Citation Sovereign is a mid-sized private jet with a range of 3,000nm. It is one of the most cost-effective private jets per seat for travel in North America because of its direct operating costs. First of all the Sovereign shines when it comes to short runway performance. At maximum weight, it only needs 2,600ft to come to a full stop. One of our Sovereigns under management regularly flies full of passengers from a 4,900ft runway to the opposite coast without any performance limitations.

Citation Sovereign Variable Operating Costs

The table below lists the direct operating costs of a Citation Sovereign based on actual data from our Citation Sovereign aircraft under management. The table is based on 360 hours of flight per year. Fuel pricing information comes from fuel prices for an aircraft operating out of Southern California.

Variable Costs360 hours per year
Total Variable Cost$700,200
Engine/APU Maintenance$198,000
Airframe Maintenance$108,000

Citation Sovereign Fixed Operating Costs

Variable operating costs are just part of the picture when budgeting for an aircraft. Variable costs are the costs associated with every flight hour the aircraft is in operation. The fixed operating costs are your costs associated with operating the aircraft that do not vary based on the number of hours flown. Some common fixed costs are:

  • Aircraft Management Fee – The fee the management company charges to oversee all aspects of your aircraft.
  • Aircraft Hangar
  • Crew Salaries and Benefits
  • Crew Training
  • Aircraft Cleaning
  • Aircraft Insurance
  • and More

How expensive is it to fly a Citation Sovereign?

The answer is: It Depends! Your tax situation, available capital, and location will have a large impact on your variable operating costs. The easiest way to determine a budget for your aircraft is to have our aircraft management team generate an operating budget for your aircraft or the aircraft you are interested in. Its fast, easy, and free.