Positioning Cost
Positioning cost is the operator's expense of flying an aircraft empty to or from a paid charter — fuel, crew duty, landing and ramp fees, handling. This is the cost empty-leg pricing recovers when an operator sells the positioning segment to a passenger.
Also known as: positioning fee, repositioning cost, ferry cost
Every paid charter requires the aircraft to get to the trip's departure airport and to leave the trip's arrival airport. Where the aircraft starts (the operator's base or its previous booking's location) and where it needs to go next determines the positioning cost on each end of the customer's trip.
On retail on-demand charter, the operator includes the positioning cost in the customer's quote — the customer pays for both the productive flight time and the positioning. On empty legs, the customer pays only for one direction (theirs), and the positioning cost is recovered by selling the empty seats at retail-discount pricing.
The price floor on an empty leg is bounded by the marginal positioning cost the operator wants to recover. Far from departure, the operator holds out for closer-to-retail pricing; closer to departure, the operator drops the price toward marginal fuel + landing-fee cost because anything above zero beats flying empty.
Frequently asked questions
- What is the positioning cost on a charter flight?
- The operator's expense of flying the aircraft empty to or from a paid charter — fuel, crew duty time, landing and ramp fees, and handling. Empty legs let operators sell the positioning leg to passengers and recover some or all of this cost.
Related terms
- Empty Leg Flight
An empty leg flight is a one-way private jet flight sold at a discount because the aircraft has to fly without passengers to its next paid booking. Empty legs are typically priced 25–80% below retail charter, with the discount widening as the departure window narrows.
- Repositioning Flight
A repositioning flight is a non-revenue flight that moves a private aircraft from one airport to another to be in position for its next paid booking. When opened for sale to passengers, it becomes an empty leg priced 25–80% below retail charter.
- Deadhead Flight
A deadhead flight is a non-revenue positioning flight where the aircraft (and often the crew) flies without paying passengers to be in position for the next paid booking. Operators sell deadhead seats as empty legs at 25–80% off retail.
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