Business Aviation Glossary
Pricing, billing, leasing, no-shows, fleet economics, school operations.
Business glossary terms cover the commercial and operational economics of running a flight school or AOC — the time-based and per-aircraft pricing concepts (block hours, per-aircraft pricing, fuel surcharges, standby rates, rental rates), the no-show and cancellation dynamics that drive revenue leakage, the GI Bill and VA-benefits revenue stream for US schools, and the wet-lease vs dry-lease distinctions that shape fleet contracting.
A
Aircraft Rental Rate
An aircraft rental rate is the hourly price charged by a flight school or FBO for the use of an aircraft, typically calculated based on Hobbs time and quoted as either a wet rate (fuel included) or dry rate (fuel separate).
Aviation Insurance
Aviation insurance covers the physical-damage and liability exposures unique to aircraft ownership and operation, underwritten through a specialty international syndicate market because general-purpose insurers lack the actuarial data and technical underwriting capacity to price aviation risk.
B
Block Hours
Block hours are prepaid bundles of flight time that students or renters purchase in advance at a discounted rate, creating upfront revenue for the flight school.
Block-Time Charter
A block-time charter is a commercial aviation arrangement in which a customer pre-purchases a defined quantity of flight hours — typically 25 to 200 hours — for use over a contract period, at a fixed per-hour rate, from a certificated charter operator. It is distinct from per-trip charter, fractional ownership, and wet lease.
C
Cadet Program and Bonded Training
A cadet program is an airline-sponsored ab-initio pilot training pipeline that recruits zero-time candidates and trains them to First Officer standard; bonded training is any arrangement in which the training cost is sponsored by an employer against a contractual service commitment, with liquidated damages provisions if the pilot leaves before the bond period expires.
Chapter 1606 — Montgomery GI Bill (Selected Reserve)
Chapter 1606 of Title 10 U.S. Code, the Montgomery GI Bill — Selected Reserve (MGIB-SR), is a US Department of Defense education benefit administered through the Department of Veterans Affairs that provides a monthly stipend during approved education or flight training to currently-serving members of the Selected Reserve and Army or Air National Guard, contingent on continued reserve service.
Chapter 30 — Montgomery GI Bill (Active Duty)
Chapter 30 of Title 38 U.S. Code, the Montgomery GI Bill — Active Duty (MGIB-AD), is a US Department of Veterans Affairs education benefit that pays the veteran a flat monthly stipend during enrolment in an approved education or flight training programme, in exchange for a $1,200 buy-in deduction taken from active-duty pay during the service member's first twelve months of service.
Chapter 31 — Veteran Readiness and Employment (VR&E)
Chapter 31 of Title 38 U.S. Code, formally known as Veteran Readiness and Employment (VR&E) and historically as Vocational Rehabilitation and Employment, is a US Department of Veterans Affairs programme that funds employment-oriented training — including flight training — for veterans with a service-connected disability rated at 10 percent or higher when VA counsellor evaluation determines training is necessary to overcome employment barriers caused by the disability.
Chapter 33 — Post-9/11 GI Bill
Chapter 33 of Title 38 U.S. Code, commonly known as the Post-9/11 GI Bill, is the dominant US Department of Veterans Affairs education benefit programme, providing tuition payments, a monthly housing allowance, and an annual book stipend to veterans, active-duty service members, and qualifying transferees pursuing approved education and flight training programmes at Part 141 and Part 142 flight schools.
Chapter 35 — Survivors' and Dependents' Educational Assistance (DEA)
Chapter 35 of Title 38 U.S. Code, the Survivors' and Dependents' Educational Assistance programme (DEA), is a US Department of Veterans Affairs education benefit that pays a monthly stipend during approved education or flight training to spouses and children of veterans who died in service, died of service-connected causes, or are permanently and totally disabled from service-connected causes.
Code-Share and Interline Agreements
A code-share is a bilateral commercial agreement where two airlines sell seats on the same physical flight under both carriers' flight numbers; an interline agreement is a lower-integration arrangement allowing through-ticketing and baggage transfer on multi-airline itineraries. Both are governed by IATA frameworks and, for consumer protection, by EU Regulation 2111/2005 and US 14 CFR §257.
D
Discovery Flight
A discovery flight is an introductory flying experience designed to give prospective students their first taste of piloting an aircraft, typically lasting 30 to 60 minutes with a certified flight instructor.
Dual Instruction
Dual instruction is flight time during which a student pilot flies with a certified flight instructor (CFI) who provides training, guidance, and oversight from the other seat.
F
Fixed Base Operator (FBO)
A Fixed Base Operator (FBO) is a commercial business granted the right by an airport authority to provide aeronautical services such as fuelling, hangaring, maintenance, and aircraft parking to airport users.
Flight Hour
A flight hour is the fundamental unit of measurement in aviation training and billing, representing one hour of aircraft operation as recorded by the aircraft's Hobbs meter or tachometer.
Fuel Surcharge
A fuel surcharge is an additional fee added to aircraft rental or charter billing to account for fuel costs that exceed the base rate built into the standard hourly price.
S
Simulator Time
Simulator time is training time logged in a Flight Simulation Training Device (FSTD) — such as an AATD, BATD, or full-flight simulator — that may count toward the flight hour requirements for pilot certificates and ratings.
Standby Rate
A standby rate is the hourly or daily charge applied when an aircraft and crew are reserved and available for a client but not actively flying.