How to Operate a Charter

Starting a bus or airplane charter business can be an exciting move.

Operating a charter bus or airplane requires planning, proper safety precautions and effective marketing. You will need to decide what type of charter you wish to operate, and you may want to start with a simple bus charter. You'll need to register your company with the proper transit authorities and obtain appropriate licenses and certifications.

Things You'll Need

• Bus or small airplane
• Licensed bus driver or pilot
• Certification from the Federal Aviation Administration (FAA) or US Department of Transportation (USDOT)
• Airport lease or bus terminal lease

Instructions

Bus Charters

1. Obtain your USDOT number and certification through the USDOT website. Fill out the questionnaire to determine what type of certification you will need. Most companies planning on carrying passengers across state lines or carrying 16 or more passengers will need special certification. Obtain necessary business licenses in the jurisdiction where you will operate.

2. 

   Purchase your bus.

   Purchase or lease a coach bus. If you do not already own a bus, you'll need to purchase or lease one, depending on your needs. Determine how many passengers you will need to transport, what type of service you will offer and whether you will purchase a used or new bus. Contact a charter bus sales distributor; find distributors online or in a phone book.

3. 

   You'll need to lease a bus terminal.

   Lease a bus terminal. Depending on the type of charter you start, you will need a place to store your bus and a place customers can find you. If you plan on partnering with a travel agency, you may be able to pick up customers from the travel agency directly. If you plan on picking up customers from hotels, you may not need a bus terminal, but you will need to contact the hotel to determine their pickup policies.

4. 

   Hire a driver for your charter company.

   Hire a driver. Place an ad for a licensed bus driver. Check applicants' driving records, find out how much experience they have and perform a background check on every applicant. You'll need to screen for any serious offenses or criminal activity.

5. 

   You'll need bus insurance for pitfalls along the way.

   Apply for insurance. By law, charter bus companies need to obtain liability insurance to cover expenses in case of an accident. According to USA Bus Charter, charter companies must have $5,000,000 minimum in liability insurance.

6. 

   Create a marketing strategy for your business.

   Market your business. Contact local travel agencies, hotels, tourist destinations and airports to find partnerships. Offer a discount to these businesses if they refer clients to you. Place an ad in the paper and on travel websites and distribute brochures in airports and hotels.

Airplane Charter

1. 

   You'll need a place to park your plane.

   Lease a terminal at an airport. You'll need an airplane hangar to store your plane as well as private use of a terminal. Many airports reserve special terminals for private charters. You will probably only need to rent an airplane hangar at your home base.

2. 

   Buy an airplane to fit your needs.

   Purchase or lease an airplane. If you do not own an airplane you will need to purchase or lease one. Contact an airplane broker online or visit a broker's hangar. Choose a plane to fit your customers' needs. Before you visit a broker, you should decide what type of plane you'll need. Will you be flying customers who expect a luxury plane? Will you offer sea plane services? How many passengers will you need to accommodate at one time?

3. Register your airplane with the FAA. You will need to fill out an application and an agent will inspect your plane. You will need to perform routine maintenance on your aircraft and you will need to inspect it regularly. FAA agents will perform routine inspections on your plane as well.

4. 

   Hire a pilot.

   Hire a pilot. You can find professional pilots through staffing agencies such as Flight Deck Recruitment. These agencies will perform an initial interview, background check, drug screening and reference check for you. However, you should interview each candidate thoroughly to ensure you hire the pilot who fits your needs.

5. Obtain insurance. You'll need to purchase airline liability insurance for your business before you schedule your first flight. After you purchase your aircraft, you'll need to purchase your liability insurance because the type of insurance depends on the type of aircraft. If you join a company like the Experimental Aircraft Association (EAA), you can contact an agent to determine your insurance needs.

Tips & Warnings

• Advertise with local businesses to get word-of-mouth business. Offer free services to people if they mention your charter to obtain new customers. Join a charter bus or plane association to network with other companies.

• Make sure you have all the proper licenses, certifications and inspections before opening your charter business. Hire licensed professionals who have at least five years of experience. Perform extensive background checks on all prospective employees (especially drivers and pilots) before making a hiring decision.

References

• Federal Aviation Administration: Aircraft Registry
• US Department of Transportation: Registration Assistance
• EAA: What Do You Know About Aircraft Liability Insurance?

Resources

• USA Aircraft Brokers Inc
• United Motorcoach Association
• USA Bus Charter: Affiliate Registration
• Flight Deck Recruitment
• Commercial Truck Financing
• Advance Air Capital: Airplane Leasing