It is not uncommon to find errors in fuel surcharges on private jet invoices, and these errors can set you back hundreds or even thousands of dollars. Since fuel prices fluctuate constantly, it can be difficult for you to know whether the fuel surcharges for your fractional jet share are accurate. You can find out the cost of fuel and verify data in your invoices every month, but this can be rather time-consuming.
Most fractional jet service providers charge fuel surcharges based on the terms in their contracts. However, there are some providers that exploit the fuel surcharge to increase their profit margins. Whether fractional jet service providers charge their customers based on the national average cost of fuel or “their” cost of fuel, there is no guarantee that the amounts they charge are fair.
So, what should you do to protect yourself? Before you sign the contract to purchase your fractional jet share, you should compare offers from several operators first. Ask them to quote fuel surcharges for different posted prices of fuel, at $2.00, $3.00, and $4.00 per gallon. So, when the price of fuel reaches a certain level, you will know immediately if you are being charged fairly. Bear in mind that there may be legitimate reasons for increases in fuel surcharges, and you should take these into consideration when deciding whether you should extend your contract with your fractional jet service provider.
It is also important that you look into ways to reduce fuel consumption, such as using a small airplane tug. Get a high quality powered aircraft tug from Lindbergh Aircraft Tug Company and start saving on fuel and labor costs.