Jet Card Pricing vs. Market Rate: Why an MSA Ensures Better Value
- Community Notes
- Mar 13
- 8 min read
Updated: 6 days ago

When evaluating private aviation options, one of the biggest concerns is cost efficiency. While Jet Cards offer convenience and guaranteed availability, their pricing structure often locks customers into rates that are significantly above market value. A Master Service Agreement (MSA), on the other hand, guarantees that you’re always paying market-driven pricing, ensuring maximum cost savings without sacrificing flexibility.
Jet Card Pricing vs. Market Rates
Let’s break down the cost of two Jet Card options:
Citation XLS (Midsize Jet) – A 25-hour NetJets Jet Card costs approximately $278,900, which breaks down to $11,196 per hour.
Phenom 300 (Light Jet) – The “One Card” program charges $225,000 for 25 hours, translating to $9,000 per hour.

Why This Pricing is Above Market Rate
The private jet market operates similarly to any other supply-and-demand model—prices fluctuate based on aircraft availability, demand, repositioning needs, and fuel costs. Jet Cards, however, lock you into a fixed hourly rate that does not adjust when market rates drop.
For comparison:
Citation XLS On-Demand Charter Rates: Typically range between $6,500 and $9,000 per hour, depending on factors like trip length, route efficiency, and operator competition.
At $11,196 per hour, the NetJets Jet Card is significantly higher than typical market rates, which usually range between $6,500 and $8,500 per hour depending on real-time market factors. At $11,000 per hour, the Jet Card holder is already locked into an above-market price—even when better deals may be available.
The Jet Card Premium: What Are You Really Paying For?
Jet Card programs justify their premium pricing by offering:
Guaranteed Aircraft Availability: While this sounds appealing, it often comes with blackout dates, peak surcharges, and limited aircraft selection.
Fixed Pricing Stability: While this eliminates market fluctuations, it also prevents cost savings when rates decrease.
Streamlined Booking Process: Yet, an experienced air charter broker can provide the same seamless experience without locking you into fixed rates.

How an MSA Guarantees Market-Driven Pricing
A Master Service Agreement (MSA) is structured differently. Instead of prepaying for flight hours at a fixed rate, an MSA allows clients to book aircraft at market-driven pricing for each trip.
With an MSA, clients benefit from:
Real-Time Pricing: Instead of being stuck with a high Jet Card rate, an MSA allows you to book flights based on actual market conditions. If demand is low, you pay less—unlike a Jet Card, which locks you into one fixed price regardless of market changes.
No Expiration of Funds: Unlike Jet Cards, which may force you to use up flight hours within a set time or lose them, an MSA ensures you only pay for the flights you actually need.
Greater Aircraft Flexibility: MSAs allow clients to choose the best aircraft for each trip, whether it’s a light jet for a short business flight or a long-range aircraft for an international mission. Jet Cards often restrict users to specific fleet categories.
Master Service Agreements (MSAs) vs. Jet Cards: The Smarter Alternative for Private Jet Travel
What is a Master Service Agreement (MSA)?
A Master Service Agreement (MSA) is a contract between a client and an air charter brokerage that outlines the terms for arranging flights on an as-needed basis. Unlike a Jet Card, which requires pre-purchasing flight hours at a fixed rate, an MSA allows clients to book flights at market rates. This means you only pay for flights when you need them, avoiding financial commitments that could become a disadvantage if market prices shift.
Pros of an MSA
No Large Upfront Payment: Unlike Jet Cards, which require a minimum of 250K+, an MSA operates on a pay-as-you-go model. Clients avoid tying up capital in unused hours and can deposit as little as 100K.
Market-Driven Pricing: Private jet pricing fluctuates based on supply and demand. With an MSA, you benefit from lower rates when the market dips, unlike Jet Cards, which lock in fixed rates that may be above market price.
Greater Aircraft Flexibility: MSAs allow clients to choose the best aircraft for each trip, whether it’s a light jet for a short business flight or a long-range aircraft for an international mission. Jet Cards often restrict users to specific fleet categories.
No Expiration of Funds: Jet Card holders face the risk of losing unused hours if they don’t fly within a set period. With an MSA, there’s no risk of expiration—you book flights as needed without time restrictions.
Stronger Negotiation Power: A brokerage using an MSA can source aircraft from multiple operators, ensuring the best deal on each flight. Jet Cards typically limit you to a single provider’s fleet, which may not always be the best-priced or most available option.
No Blackout Dates: Many Jet Card programs restrict travel on peak days or impose surcharges. An MSA allows clients to book anytime, ensuring availability based on real-time market conditions.
Cons of an MSA
Prices May Vary: While an MSA gives access to the best market rates, prices fluctuate due to demand, fuel costs, and availability. Peak seasons (e.g., holidays) may result in higher rates, but overall, clients still avoid the long-term price lock-ins of Jet Cards.
No Guaranteed Aircraft Availability: Jet Cards offer guaranteed access, while MSAs rely on real-time aircraft sourcing. However, a skilled broker can secure aircraft even during high-demand periods.
More Involvement in Booking: With an MSA, each flight requires a booking process that involves choosing aircraft and confirming rates. Jet Cards streamline this process but at the cost of higher pricing and less flexibility.
Jet Card Pricing vs. MSA: Why Market Rates Matter
Many Jet Card programs charge fixed hourly rates above market value, reducing potential savings.
For example:
Citation XLS (Midsize Jet) Jet Card– $11,196 per hour (NetJets 25-hour card: $278,900)
Phenom 300 (Light Jet) Jet Card – $9,000 per hour (NetJets 25-hour card: $225,000)
Market Rates for On-Demand Charter:
Citation XLS: Typically between $6,500 – $9,000 per hour
Phenom 300: Typically between $6,500 – $8,500 per hour
Jet Card holders may overpay by 20-40% compared to market rates. With an MSA, clients are always booking flights at real-time market rates rather than being locked into above-market pricing.
Which Option is Best for You?
A Jet Card is Ideal if You:
Fly frequently and want a predictable fixed hourly rate.
Prioritize guaranteed aircraft availability, even during peak seasons.
Don’t mind paying a premium for convenience.
An MSA is Ideal if You:
Prefer market-driven pricing, ensuring you only pay fair rates.
Want flexibility to choose different aircraft for each trip.
Avoid large upfront costs and financial lock-ins.
Need full access year-round, without blackout dates or expiration risks.
Conclusion: Why MSAs Are the Smarter Choice for Most Travelers
While Jet Cards provide structure and consistency, MSAs offer financial efficiency and flexibility. Travelers who want cost-effective private jet travel without financial commitments or fixed rates will benefit significantly from an MSA. Why lock yourself into high Jet Card rates when market prices fluctuate?
For those who value cost savings, flexibility, and access to the best market rates, an MSA is the clear choice. Pay for flights when you need them—at the best price available. Tax Implications of Jet Cards vs. Master Service Agreements (MSAs)
When choosing between Jet Cards and MSAs, understanding the tax implications can be as important as evaluating pricing and flexibility. While the specific tax treatment varies based on jurisdiction and individual circumstances, there are notable differences in how these two options may impact your financial obligations.

Tax Implications of Jet Cards
Jet Cards are typically structured as prepaid blocks of flight hours, and the tax implications stem from the prepaid nature and how flights are arranged:
1. Federal Excise Tax (FET)
Rate: In the United States, a 7.5% Federal Excise Tax (FET) is applied to most domestic private flights.
When It’s Applied: FET is usually calculated based on the cost of each flight, but for Jet Cards, it may be applied upfront on the entire block purchase. This means you could pay FET on your entire Jet Card amount before you’ve even flown.
Example: A $278,900 Jet Card for a Phenom 300 would incur $20,917.50 in FET upfront.
2. Non-Deductible Flights
Flights used for personal purposes are not tax-deductible. However, if flights are business-related, they may be deductible under certain conditions.
With Jet Cards, tracking which flights are for business vs. personal use can be complicated if prepaid hours are shared among multiple users.
3. Potential Overpayment of Taxes
If you don’t use all your Jet Card hours, you may face challenges recovering prepaid FET for unused funds, as some providers may not refund FET on unused balances.
Tax Implications of Master Service Agreements (MSAs)
An MSA allows for pay-as-you-go booking, which generally provides more control and transparency regarding tax obligations:
1. Federal Excise Tax (FET)
Rate: Like Jet Cards, domestic flights booked under an MSA are subject to 7.5% FET.
When It’s Applied: FET is calculated per flight based on the actual cost of the trip. You’re only taxed when you fly, not on a prepaid block of hours.
Example: A $15,000 trip would incur $1,125 in FET, with no upfront payment required for unused flights.
2. Business Expense Deductibility
Flights booked via an MSA can be deducted as business expenses if used for eligible business purposes. Because MSA flights are billed individually, it’s easier to track and allocate costs for tax reporting.
3. No Unused Hours, No Lost Taxes
With an MSA, there’s no risk of overpaying taxes on unused hours because you only pay taxes on flights you take. This eliminates the issue of prepaying FET and not flying enough to justify the initial tax outlay.
Key Differences in Tax Implications
Feature | Jet Cards | MSAs |
FET Payment Timing | Paid upfront on the entire block of hours. | Paid per flight at the time of booking. |
Unused Funds & Tax | Risk of paying FET on unused hours. | No risk—only pay FET for flights taken. |
Business Expense Tracking | Complex if hours are shared across users. | Simpler to track for individual flights. |
Flexibility | Limited refund options for unused prepaid taxes. | No prepaid taxes—only pay as needed. |
Other Considerations
International Flights:
International flights may not be subject to FET but could incur departure taxes or fees specific to the destination. Both Jet Cards and MSAs are subject to these rules, but MSAs may provide more flexibility in adjusting costs for international trips.
State Sales Tax:
Depending on the state, sales tax may apply to prepaid Jet Card purchases. For MSAs, are billed per trip, tax documentation is often clearer, making it easier to separate business and personal travel for tax purposes.
Since there’s no prepaid balance, you won’t risk locking up capital in a non-deductible expense.
Business users can expense flights individually, ensuring that only actual usage is accounted for in financial reporting.
No Upfront Tax Liability
Unlike Jet Cards, where you may be charged FET upfront on the full purchase, an MSA ensures that FET is only applied to each specific trip at the time of booking.
This eliminates the risk of overpaying taxes on unused flight hours.
Key Tax Differences Between Jet Cards and MSAs
Tax Factor | Jet Cards | Master Service Agreement (MSA) |
Federal Excise Tax (FET) | Charged upfront on the full amount of prepaid hours. | Charged per trip at the time of booking. |
Refunds for Unused Hours | Limited or none—FET may not be refunded for unused time. | No risk of tax overpayment—only pay FET when you fly. |
Deductibility for Business Use | Potentially more complicated due to prepaid structure and shared usage. | Easier to track & deduct since flights are billed per trip. |
Financial Flexibility | Large upfront capital outlay with prepaid tax obligations. | Pay-as-you-go structure avoids unnecessary upfront tax liability. |
Which Option is More Tax-Efficient?
For high-net-worth individuals who prioritize convenience, Jet Cards may be worth the tax burden if they frequently travel and don’t mind prepaying for hours. However, for business users or those seeking tax efficiency, an MSA is generally the better option because:
✅ No upfront tax payments—you only pay tax on flights you actually take.
✅ More control over deductibility—each flight is billed separately, making it easier to claim business expenses.
✅ Avoid overpaying FET—since there’s no prepaid block of hours, you’re never taxed on unused flights.
While taxes shouldn’t be the sole factor in deciding between a Jet Card and an MSA, they can significantly impact the total cost of ownership. If flexibility, cost efficiency, and tax optimization are priorities, an MSA offers clear advantages over the Jet Card model.

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