A Game Changer An Interview with Fred Reid, President, Flexjet EDITORS’ NOTE Fred Reid assumed buy into a whole system, and at Flexjet his current role in August of 2008. in particular, you’re buying into a system His most recent post was as Chief with extraordinarily high standards. Executive Offi cer of Virgin America. We’re the only fractional operator Prior to this, he served as President to have achieved two important mile- outlets, and you understand that you can’t run of Delta Airlines. He was the fi rst U.S. stones: the FAA Triple Diamond Award these businesses from a computer in an offi ce, national to lead a major interna- for 11 years in a row, and we’re the you cannot do what you need to do any other tional airline when he was President only fractional operator certifi ed for our way. Also, these planes often have fi ve, six, or and Chief Operating Offi cer of safety program by the Air Charter Safety seven passengers in them, and if you divide the Lufthansa German Airlines. From Foundation. We perform 200 percent of cost of that plane per passenger and compare the mid-’70s to early ’90s, Reid held the required FAA pilot training, instruct- it to fi rst class, it’s going to still be more expen- marketing and management po- ing all pilots as captains, and having sive, but not as much as you’d think. sitions with Pan American World Fred Reid them always fl y the same aircraft type. In I fl y mostly commercial, but every now and Airways and American Airlines. addition, we’re owned by Bombardier, then, I can’t get where I need to be without a He is a graduate of the University of California which has a lot at stake reputation-wise. business jet – there is not enough time in the at Berkeley, and is a member of the Board of How has the Bombardier relationship day. Otherwise, I could end up with my entire Directors of AMB Property Corporation. impacted the type of aircraft that you offer, senior team out for a whole day, waiting in air- and will you give a brief overview of the ports, with no Internet connectivity on commer- COMPANY BRIEF Flexjet (www.fl exjet.com) of- aircraft offerings? cial planes, extra hotel and meal expenses, and fers a turnkey program allowing individuals or We have the youngest fl eet in the indus- time away from their offi ce and their homes. companies to purchase a share in a Bombardier try with an average age of less than three years, You multiply that by 5, 10, or 20 weeks a year, business jet at a fraction of the full ownership which is a big differentiator. The Flexjet fl eet is and private aviation can be a game changer. cost. Flexjet manages all aspects of the aircraft, made up exclusively of world-class Bombardier In running a company like Flexjet, providing fl ight crews, training, maintenance, business jets, including the Learjet 40 XR, Learjet how challenging is it to budget your time, insurance, and catering. The recent integration 45 XR, Learjet 60 XR, Challenger 300, and and how do you focus your efforts? of Skyjet charter brokerage services into the com- Challenger 605 business jets. The Challenger air- Three areas that I work on most are fi - pany’s product offering positions Flexjet as the craft have longer range, a stand-up cabin, and nance, operations and, primarily, human re- fi rst in the market to offer a complete range of are much roomier. The 300 and 605 can both get source and organizational development. private aviation solutions. Flexjet’s parent com- to Europe and back easily. We offer fi ve different The fi rst matter is human development: I pany is Bombardier Inc., the Canada-based models of two different brands within one single believe that if you get the right people with world-leading manufacturer of innovative manufacturer. the right attitude, a lot is going to take care of transportation solutions, from regional aircraft Have you succeeded in having people itself. The next area is customer prospects and and business jets to rail transportation equip- look at this type of service as a tool and an product development. We ask, “What are the ment, systems, and services. enhancement for business, as opposed to hybrids among fractional and jet cards, whole an excess? aircraft ownership, and retail charter? How can Would you provide a brief overview of the Defi nitely. Private jets are truly essential busi- we be present in the most areas, and how do Flexjet ownership experience and how you ness tools, not glamorous perks for the wealthy. In we continue to evolve our product and offer differentiate Flexjet? good times and in bad, the requirement for busi- more options for people?” In the past year, The reason a lot of people prefer fractional ness travel remains. Ours is an industry that helps we’ve developed four or fi ve new products to aircraft ownership more than whole aircraft owner- facilitate growth and commerce, providing a way create more choice and ease of entry into this ship is that, while it’s a lot of fun to own your own for companies and individuals to more effectively space for prospective owners. plane, utilizing the fractional model allows you to and effi ciently do business We have about 900 owners. I host fi ve to legally own a portion of a depreciating asset where In fact, 75 percent of all private jets fl own eight dinners a year for them around the coun- you can buy anywhere from 1/16th of a plane to by companies do not have the CEO on board. try and spend the entire next day showing them an entire aircraft. However, when you invest in They’re troubleshooters, or technicians, or gen- fi nancials, operating statistics, and discussing fractional jet ownership, you don’t have just one eral counsels closing deals on a time-sensitive our strategy. I listen to their feedback and we plane – you have 100 planes that you can fl y on. basis, or we’re fl ying bankers somewhere take action accordingly. As a company, we take There are a number of additional advantages to provide fi nancing – it oils the wheels and pride in our commitment to excellence. At the to fl ying fractionally. You can leverage the price greases the skids for the execution of American end of the day, that commitment is what em- differential for a shorter trip or get four planes on business on a very large scale. If you take the powers Flexjet to be a game changer in the pri- the same day to bring your board of directors to- top 10 to 20 percent of the country’s highest vate aviation industry.• gether at a desired location. Also, there are 350 pi- performing companies in terms of shareholder lots and 100 mechanics, so there are a number of return, 92 percent use private aviation. If you Learjet 45 XR exterior and interior (Center top and bottom); back-ups if there is a mechanical event. You can have 15 factories, 150 restaurants, or 90 retail Callenger 300 exterior and interior (Top and bottom right) VOLUME 33, NUMBER 3 POSTED WITH PERMISSION. COPYRIGHT © 2010 LEADERS MAGAZINE, INC. LEADERS 87.