Under a joint venture with the People’s Global charter market experiences rebound Republic of China, NetJets China plans to manage and charter aircraft, such oming off its long slump following the onset of the 2008 reces- as these Challengers, that are wholly sion, air charter has enjoyed a generally good year around the owned by customers, rather than C introducing fractional ownership. globe, and there are indications that the demand will continue to pick up as the world economy finally rights itself, and charter continues to adapt to the needs of travelers around the world. Here’s a look at the SPECIAL REPORT current state of charter markets in North America, Europe, Asia, Latin America, Africa and the Middle East. & by James Wynbrandt North America hourly rates for light, midsize and large- FRACTIONAL CHARTER Following two slack years, North cabin aircraft over the past six months American air charter flights increased has shown fluctuations from 10 percent almost 9 percent (8.9%) from August above to 3 percent below the previous 2012 to July 2013 over the same period year’s pricing, and domestic operators Challenger 300 for travelers flying to and Whatever the discrepancies in data, a year before, according to aviation complain that aggressive pricing by com- from designated zones. Sentient, which several major Europe-based providers market research and services firm Argus Inter- petitors keeps rates depressed. claims more than 4,000 active customers, report strong growth over the past year, 21 Global charter market experiences rebound part 1 national. Charter flight activity for all Sales of jet cards, whose flight time is saw strong demand in the charter market due as much to business model adjust- 24 Big four national frax list dwindles to two cabin categories was up for the period. flown under Part 135, also appear on the recently for super-midsize and large-cabin ments as to overall market demand. Small and midsize cabins saw double- increase. Andrew Collins, president of aircraft, and created 25-hour jet cards Patrick Margetson-Rushmore, chief 26 Regional fractionals digit jumps (11.3 percent and 15.3 per- charter broker Sentient Jet, said the com- providing fixed pricing, guaranteed avail- executive of charter management com- cent, respectively); large-cabin flight pany’s jet card product has experienced ability and a hedge against any pany London Executive Aviation 28 Bankruptcy strands share owners activity rose 7.6 percent and turboprops “its strongest summer of flying in five fuel price increases. Meanwhile (LEA), said this July was “the best were up 3.1 percent. years, and we had one of our best months Sentient has continued a focus on month we have had in the last five Overall charter activity within North ever this past July.” developing “preferred relation- years,” with charter providing the America declined by 0.8 percent, accord- Bombardier’s , whose fleet of ships within the operator commu- bulk of the company’s 25-percent ing to FAA data, but that was offset by Learjet 40XRs, 45XRs and 60XRs and nity,” to source the best available increase in revenue for the May- increases in charter flights to Asia (up 15 Challenger 300s and 604s is operated by aircraft for customers, and has July period. LEA operates 29 air- hile the charter industry the company’s shutdown will affect to have decided they are better off Bombardier Globals on its behalf. percent) and Latin America (up 6.2 per- Texas-based Jet Solutions, reported 48 a guaranteed revenue program craft from a Citation Mustang cent), while charter to Europe was up 1 percent growth in jet card sales in this where it will pre-purchase hours to Dassault Falcon 2000s, based has seen some changes the fractional business. (See story focusing on manufacturing rather (See story on page 1.) percent, the agency reported. year’s first quarter, compared with the on the aircraft. from London to Moscow. W this year, the fractional- on page 8.) than aircraft operations. Part 1 of AIN’s charter/fractional Charter’s growth comes at the expense same period last year. (Flexjet’s charter California-based JetSuite, Patrick Margetson- Athens-based Gainjet increased share business is undergoing a Of course, Avantair is the For a short time it appeared special report, along with special of fractional aircraft flying (down 8.5 per- arm brokers flights rather than using the which provides charter on its fleet Rushmore, its charter business over the LEA chief executive wrenching transition, with the second fractional operator to have that the fractional-share industry coverage of these major develop- cent, according to Argus), attributable in Flexjet fleet.) NetJets reported sales of its of Phenom 100s and Citation past year by reshuffling its fleet, shutdown of Avantair and the exited the business in recent times. would return to one dominated ments in this issue, explores the part to Avantair’s unraveling (see page 8) Marquis Jet Card contributed to an over- CJ3, has partnered with Singapore Air- said marketing director Andrew Hallak, announced sale of Bombardier’s CitationAir, ’s fractional- by three large players, but that is changes in both industry segments and CitationAir unwinding its fractional all 50-percent increase in the company’s lines to provide service and connections phasing out its super-midsize jet fleet in Flexjet to Flight Options parent share, charter and management divi- not the case because on September during the past year and provides program, as well as to a decline in Part first-half sales. for some preferred airline passengers. favor of “focusing on large-capacity pri- 91 flying. “Overall the pie doesn’t appear Now JetSuite has announced partnering vate aircraft.” The Gainjet executive fleet Directional Capital. sion, is all but non-existent after the 5, Bombardier announced the a snapshot of the current state of to be growing, but the slices are changing Market Drivers with Leverage Global Partners, a network ranges from the Gulfstream G450 and Avantair, whose fleet of 56 effi- company’s parent, Textron, decided sale of Flexjet to Directional the charter and fractional-share shape,” said Argus CEO Joe Moeggenberg. In addition to an improving economy, of boutique real estate brokerages, to co- G550 to the Bombardier Global Express cient, fast and roomy Piaggio that aircraft operations weren’t Capital for $185 million. (See segments. In AIN’s November issue, Charter’s growth trend appears to be con- charter sales are being driven by increas- promote their offerings among customers. XRS and a Boeing 757-200 and 737-400. Avanti twin turboprops domi- in its best interests. CitationAir story on page 1.) A day later, various issues affecting the charter tinuing. According to Argus TraqPak ing product offerings, partnerships and XOJet and TWC Aviation, two major Thanks to a “booming” market in Rus- nated the turboprop fractional is finishing out its remaining VistaJet announced a move into and fractional-share industries will numbers, July marked the 10th consecu- alliances among providers, and the avail- California-based charter operators, have sia and a “dynamic” Middle East, Switzer- market, was forced into invol- contracts, but it won’t be surprising the U.S. charter market in an alli- be explored, including what happens tive month of an increase in Part 135 fly- ability of empty legs and one-way pricing. partnered to give members of each others’ land-based charter broker Vertis Aviation untary Chapter 7 bankruptcy in to see the company disap- ance with Jet Aviation when a key fractional player ing, and the month’s flight totals were 17.8 Flexjet’s Coastal Connect program, a card programs guaranteed access and pre- has seen “about a 12-percent increase August. Avantair accounted for pear in the not-too- Flight Services, suddenly shuts down, and how that percent over the previous July’s. feature introduced on its Flexjet 25 jet card ferred rates aboard their respective fleets. year-on-year so far,” said partner Jeffrey The price of charter has remained last December, provides special incen- Emmenis. Vertis has exclusive representa- a significant amount of private distant future as which is to affects the owners, the state of the inconsistent. Avinode’s tracking of tive rates for cross-country travel on the Europe tion for a fleet of more than half a dozen turboprop traffic in the U.S., and aircraft manu- operate a empty-leg charter market, charter Conflicting signs of an economic jets from Bombardier Global XRS to Air- it will take some time to see how facturers seem fleet of 12 pilot training issues and more. n rebound in Europe are mirrored in the bus Corporate Jets. One indication of its region’s air charter data. Avinode, the growth: an independently managed Vertis Swedish online charter marketplace and Aviation opened in London this year. data provider, reports the total value of Slovenia-based Elit’Avia has also ben- requested departures in Europe increased efited from growing demand in Russia by approximately 30 percent during the over the past year, adding three Bombar- first six months of this year compared dier Global 6000s and a Global XRS to with the same period last year. Avinode its fleet in the last year. To improve ser- sees an even more encouraging increase vice to clients in the U.S.–and attract new (80%) in value in unique requests for ones–Elit’Avia opened a sales office in flights over the past two years, driven by Atlanta this year, said managing director increasing demand for large-cabin, long- Michel Coulomb. range charters. (The Avinode system fil- Last December, the UK’s Hangar 8 ters out duplicate broker quote requests (see article on page 70) acquired Interna- for a single flight.) tional Jet Club, creating a fleet of some Yet Eurocontrol reports charter flight four dozen business jets, the majority of departures from Europe were down 4.1 per- them large-cabin. In addition to giving cent over the past year, while the European Hangar 8 more of the scale an interna- Business Aviation Association (EBAA) said tional provider requires, the acquisition Operators are offering plenty of new overall business aviation arrivals, depar- has provided “useful insight into the options that make charter a palatable tures, internals and overflights decreased option for a broader market. by 4.4 percent during that period. Continues on next page

20 Aviation International News • October 2013 • www.ainonline.com SERIES GLOBAL 6000 NETJETS SIGNATURE www.ainonline.com • October 2013 • Aviation International News 21 FRACTIONAL & CHARTER Continued from preceding page market 25% International Premium Traffic Growth by Route 20% June 2013 operational methods employed by other and taking travelers from those portals 15% companies,” said Janus Kamradt, group to points around the world. Neil Har- 10% sales and marketing director. He also said vey, director of executive aviation at UK- 5% that to help ride out the prolonged down- based charter broker Hunt & Palmer, 0% IATA Source: turn in Europe’s business aviation activ- said the company’s strategy is “to arrive Mid Atlantic North and Mid Pacific South Atlantic North Atlantic Europe - Africa Within Europe Within Africa Far East - Southwest Pacific Africa - Far East Total Middle East - Far North America - Central Europe - Far East Within South America Europe - Middle East Within North America South Pacific Within Far East North America - South Other routes Africa - Middle East ity, over the last 18 months Hangar 8 has in Hong Kong or Shanghai [with char- -5% diversified its charter fleet into long-term ter passengers], then fly them back to the lease contracts, “which have helped us point of departure.” Hunt & Palmer typ- weather the storm better than some of ically brokers Chinese-registered aircraft our competitors.” based in Hong Kong, where the com- If charter has increased, surely the pany has an office, including a Falcon attractive pricing has played a role, to 2000 and 2000LX, Challenger 300, 605 the detriment of many operators, own- and 850, and a pair of Gulfstream IVs ers and others squeezed by downward for missions to and from China. Using The airlines are reporting growth among premium pressure on charter rates. Gainjet’s Hal- Chinese-registered aircraft enables pro- passengers on a number of routes and this growth lak cited “price wars between operators, viders to expedite flight permitting pro- could spell good news for charter operators. brought about by brokers and online cedures, as well as arrange some trips Top 10 Airports for Part 135 marketplaces,” as the main challenge fac- within China, for example to Beijing. five days, and plans can’t be amended eas- Departures and Arrivals ing charter in the region. Chinese charter customers travel- ily, hamstringing the quick response and 30 Charter also faces the larger chal- ing outside China often prefer flying on flexibility that are hallmarks of air char- 25 lenges that confront business aviation as N-registered aircraft, which are seen as ter elsewhere. Bureaucratic bottlenecks 20 a whole in Europe, ranging from rising facilitating international travel. U.S.- also check charter’s ability to expand. The 15 taxes and fees to a patchwork of incon- based TWC Aviation established an alli- Civil Aviation Administration of China 10

sistent regulations and reporting require- ance with Sino Jet Management last year (CAAC) has 53 applications for aircraft 5 ments, as well as lack of clear operating to operate charters using Sino Jet’s fleet operator certificates (AOCs) from com- Departures In Thousands KTEB KVNY KHPN KHOU KLAS KPBI KAPA KDAL KMDW KIAD rules governing air charter. The Euro- of Hong Kong-based, U.S.-registered panies that want to establish charter ser- pean Business Aviation Association business jets. TWC formerly offered sim- vices within China, but only 12 AOCs are 30 (EBAA) has working groups directly ilar service through an alliance issued annually. 25 related to air charter issues, such as illegal with TAG Asia. The concept of air charter has 20 charter activity, and is “working to have Having an established pres- yet to catch on in China. David 15 dedicated regulations for air taxi opera- ence in the region and “a stra- MacDonald, sales director for 10

tions,” according to Belarmino Paradela, tegic partner experienced with private jets at international Arrivals In Thousands 5 Argus TraqPak Source: EBAA’s senior manager for economics. local customs, cultures, lan- charter broker Air Partner, said KTEB KVNY KHPN KHOU KLAS KPBI KAPA KDAL KMDW KIAD guages and regulations,” is essen- wealthy Chinese don’t use char- Asia tial to gaining a foothold in the ter “for personal travel or leisure Brazilian Yearbook of General Aviation, Jet charter flights to Asia from the China market, said TWC CEO travel, as in the U.S. or Europe.” published by the Associação Brasileira U.S. increased 15 percent in the first Andrew Richmond. But MacDonald notes Air Part- Aviação Geral [ABAG]) remains Latin half of this year compared with the Also last year, U.S. fractional David MacDonald, ner has seen “a lot more Asian America’s key charter market, even if same period last year, according to FAA provider NetJets established Air Partner companies coming into Europe it is not currently a healthy one. ABAG sales director data. Flights from Europe to Asia dur- NetJets China Business Aviation for private jets and wanting to charter aircraft,” reports air-taxi operations declined 12 ing the same period increased 12 percent, Ltd., aimed at providing aircraft which he interprets as a hopeful percent over the past year, and illegal according to Eurocontrol. management and air charter operations sign. “That’s when Far Easterners started charter may be partly to blame. The Bra- Charter providers covet China’s mar- to customers in the region. Subject to becoming clients,” MacDonald said. zilian Air Taxi Operators Association ket the most for its potential size, but its government approval, NetJets China will Culturally, the idea of letting strang- (ABTAer) has been waging a campaign limited general aviation infrastructure, establish a joint venture with a consor- ers use one’s aircraft is foreign to most to engage the Agência Nacional de Avi- regulatory strictures and lack of cultural tium of Chinese investors. business jet buyers in Asia, so they are ação Civil (ANAC, National Civil Avi- awareness of air charter constrain inter- But substantial reform and cultural less likely to make their aircraft available ation Agency) in cracking down on the nal growth in the near term. Providers awareness is necessary before charter can for charter, potentially limiting the size of practice. Last December, the association are now concentrating on bringing inter- really expand within China. Obtaining the charter fleet. protested the illegal use of helicopters national travelers to China’s doorstep permits for a flight within China can take for passenger shuttle purposes during the Latin America Formula 1 World Championship car race Charter flights to Latin America and in São Paulo. the from January to July of In Mexico, illegal charter operations this year were up 6.2 percent over the cor- are hurting the region’s charter industry, responding period last year, according to said Alexis Javkin, director of Toluca- FAA data, while Eurocontrol figures for based fractional operator MexJet. By the period show traffic from Europe to circumventing regulations, illegal opera- Latin America and the Caribbean was up tors can offer lower prices, undermining 22.2 percent. Requests for charter trips to the investment legitimate providers make and from the region also jumped, accord- in improving safety and service, such as ing to Avinode, which reports a 51-per- earning Wyvern Wingman status, which cent gain over the past year. MexJet received this August. Brazil and Mexico have led the Overall, though, indications for the region’s growth in recent years, and region’s business aviation industry, and though their economies have been cool- by extension air charter, are positive. ing recently, aviation analyst Brian Foley Industry forecast specialist HIS Global points out that economies in Argentina, Insight predicts economic growth in Venezuela and others in the region are Latin America will average 4.1 percent on the uptick, an economic diversity that annually over the next 20 years. Hon- “makes for a more stable and consistent eywell’s 2012-2022 market forecast sees

DAVID McINTOSH DAVID market overall.” Latin America accounting for 18 percent Charter operators have their work cut out for them in the Chinese market as Chinese owners have Nonetheless Brazil, with the second traditionally been wary of chartering out their aircraft. Wealthy individuals have tended not to charter largest GA fleet in the world after the Story continues on page 28 Report continues on page 24 aircraft for travel, but companies are starting to use them, a hopeful sign for operators. U.S. (according to the 2013 edition of the

22 Aviation International News • October 2013 • www.ainonline.com & FRACTIONAL CHARTER Total Flight Activity by Operational Category Continued from page 22 market 2011-2012 vs 2012-2013

1.6M PART 91 PART 91

1.4M 2011-2012

2012-2013 1.2M

1M PART 135 800K PART 135

600K

Fractional 400K Fractional

200K Argus TraqPak Source:

else.” All new NetJets airplanes will be Big four list of national fractionals dwindles to big two Signature Series versions. About six months ago, NetJets intro- by Matt Thurber duced a new aircraft transition program, where it will help an owner who is inter- ll of a sudden, the ranks of national jet frac- fractional provider Avantair on June 26 and its involuntary ested in a NetJets share sell their aircraft or even buy the aircraft outright then sell A tional-share operators in the U.S. are shrinking bankruptcy in August. Just a month later, Bombardier and it. “We have closed several of these deals to a “big two,” down from four active compa- DAC announced plans to sell Bombardier-owned Flexjet to already,” Hansell said. From an internal perspective, NetJets nies not too long ago. The remaining players are NetJets, DAC for $185 million as well as an order by newly formed is the first private aviation company to which celebrates its 50th year in business next year, Flexjet LLC, the shell company formed for the acquisition, achieve Level IV in the FAA’s safety man- agement system pilot program. “We’re having started as Executive Jet Aviation–the first national for $1.8 billion worth of new jets. unceasingly trying to improve the basic charter/management company–in 1964, and the compa- These changes reflect a massive consolidation of operation and distance ourselves from nies that are and will be owned by Directional Aviation aviation’s fractional-share industry, and while NetJets, our competitors,” he said. “I’ve told the folks here at NetJets we’re going to do Capital (Flight Options and, when the deal closes later Flexjet and Flight Options will remain at about the what is necessary to make sure we are this year, Bombardier’s Flexjet). same size or even grow, the total fractional fleet has the safest possible operation we can be, period. And the nice thing about work- It seems the major changes occurring to the fractional lost the 56 airplanes that were purported to be in ing at NetJets is they all looked at me and industry this year began with the shutdown of turboprop the Avantair fleet. nodded and said, ‘We’ve been doing that for a long time,’ and went back to work.” Hansell doesn’t find much to worry NetJets helped, although the market in Europe authorities; they’ve been quite welcoming about with the consolidation that has Berkshire Hathaway-owned NetJets remains “a little bit tougher,” he said. of our applications and we’re looking for- reduced the fractional field to two major is still the biggest fractional-share and “We are seeing improvement year over ward to getting up and running there as companies (although Flight Options and charter/management operator, with year in some categories and jurisdictions soon as possible.” Flexjet will be run as separate organiza- a total of about 707 jets in its world- but it’s still so early that I almost hate The NetJets business model for China tions). “There have been changes in the wide fleet (includes NetJets, NetJets to say one way or the other. We’ve seen will be a traditional management busi- general aviation industry for a long, long Europe and Executive Jet Management). before it can turn quickly, and I’m talk- ness. “We think there’s a strong market time,” he said. “We’ve seen people come, Approximately 500 of those airplanes are ing more about the economy in Europe for that, and I think we can provide supe- go, combine, exit. We focus almost exclu- in fractional service, with 100 serving the than I am about us.” rior service,” he said. Meanwhile, NetJets sively on what we’re doing at NetJets, European market and 190 managed by NetJets China has not yet begun oper- has been working with Chinese custom- on providing the highest levels of safety Executive Jet Management. ating because NetJets has applied for its ers, offering a jet card for U.S. and Euro- and service possible. And we couple that In its second-quarter earnings report, own air operator certificate in China, and pean travel, “and we’ve seen some early with the national stability of Berkshire Berkshire Hathaway reported increased this process will take some time to com- demand for that.” If anything, this will Hathaway. I really feel good about what share sales as well as earnings that grew plete (although it should be noted that it help introduce Chinese customers to pri- the team has been able to accomplish.” “due to improved flight operations mar- sometimes takes a year or two for U.S. vate jet travel and the NetJets experience. gins, fractional sales margins and reduced operators to receive charter approval). At some point, however, NetJets will con- The New Flexjet net financing costs.” “China is not yet relevant because we’re sider offering fractional shares in China, The announcement of DAC’s plan to “We’ve been pleased overall with our still in startup mode,” he said. “We’ve he added, “if it makes sense, but we don’t purchase Flexjet for $185 million comes global performance,” said NetJets chair- been making our way through the regula- have that in the firm plan at the moment.” at a time when business is booming for man and CEO Jordan Hansell. The tory process. We’ve been pleased with our In ordering new jets, Columbus, Ohio- the Bombardier-owned fractional-share slowly improving U.S. economy has interactions with the Chinese regulatory based NetJets took a new tack a few operator. Flexjet president Deanna years ago, negotiating special “Signature White will remain with the company, as Series” versions with custom features that will all other current employees. DAC has are available only to NetJets. The first formed a new company, Flexjet LLC, to to be delivered was a Signature Series purchase the business from Bombardier. Embraer Phenom 300, and the Bombar- The deal is expected to close by year-end. dier Global 5000 and 6000 models that At the same time that it announced have started joining the NetJets fleet are the purchase, DAC also placed an order also special versions. Next year, Bombar- for 85 Bombardier jets worth $1.8 billion, dier will begin delivering Challenger 350s including 25 Learjet 75s, 30 Learjet 85s, in a Signature Series to NetJets. These 20 Challenger 350s and 10 Challenger special versions are paying off, according 605s, plus options for 160 more airplanes to Hansell. “We’ve seen a lot of excite- worth another $3.4 billion. Deliveries will A few years ago NetJets negotiated with manufacturers for delivery of its own “Signature Series” models, ment centered around the fact that the begin in July next year. exclusive to the fractional operator. The Phenom 300 and Global 5000 and 6000 (shown) have started joining aircraft are new and different and unique the fleet. The Challenger 350, for which NetJets is the launch customer, is scheduled for delivery next year. Continues on page 26 NETJETS SIGNATURE SERIES GLOBAL 6000 NETJETS SIGNATURE and that one can’t buy them anywhere

24 Aviation International News • October 2013 • www.ainonline.com & FRACTIONAL CHARTER Fractional Flight Activity Business Aircraft Flight Activity 40K 250K40K 2011-2012 vs 2012-2013 2011-2012 vs 2012-2013 different. We’re not putting Lakes region seem limited, Continued from page 24 1,000 or 1,200 hours per year on “We’re just scratching the sur- market 240K35K 35K the airplanes; we’re flying a max- face,” Plumb said. “We spent DAC’s purchase of Flexjet that size aircraft. With NetJets company planned to add four to 230K imum of 650 hours per year and lot of effort in Buffalo [the will give it two separate frac- now flying Global 5000s and six Phenom 300s and the same 30K 30K we have better residual value. Great Lakes base] and are tional operations: its exist- 6000s and awaiting delivery of number of 400XTs this year. 220K Our pricing model and manage- expanding our presence there ing Flight Options brand and even longer-range 7000s and Flexjet’s fleet size just before 25K 25K ment fees are about 50 percent to exploit new markets.” As the 210K Flexjet. DAC chairman Kenn 8000s, it appears Flexjet will the sale announcement was of those of the larger carriers, so Citations join the fleet and cus-

Ricci told AIN that Flight step up to that competition. about 80 aircraft, according to Argus TraqPak Source: 20K 200K20K they have more costs to absorb.” tomers come to appreciate their Options will offer a “value” frac- Just before the announce- White. The company has been AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL While EAS’s service areas utility, “we can see expanding tional product using mostly pre- ment of the sale to DAC, Flight enjoying a resurging interest 2011-2012 2012-2013 in the central U.S. and Great that fleet next year.” o owned or remanufactured jets, Options executive v-p of sales in asset purchases, with frac- which include the 400XT modi- and marketing Matt Doyle told tional sales up 112 percent in fication of the Beechjet/Hawker AIN that fractional-share cus- the first half compared with them with customers in the next 400 done by sister company tomer growth is up 25 percent the same period last year. Jet month or so. The CJ2+s offer Nextant. Flexjet will be DAC’s this year, having grown 30 per- card sales were up 68 percent. a new product for buyers who luxury brand, with newer jets cent last year. Many of these “The industry had something want something larger than that it will fly for about four customers are new to frac- of a benefit from the economic EAS’s Embraer Phenom 100 years before they are sold or tional shares, he said. While improvements,” she said. “Peo- but don’t want to spend as much moved into the Flight Options the Flight Options jet member- ple are starting to open their wal- 90 days’ notice and no penalty) Flexjet aircraft after DAC com- for a share in one of the opera- fleet. The new Flexjet aircraft ship club has seen significant lets and spend more. We’re doing and a 90-day satisfaction guar- pletes the purchase, although tor’s Phenom 300s. The will also feature special interior growth, he said, “Fractionals well financially on the cash flow antee. “A lot of customers who that will likely be reviewed after also cost less to operate than the colors and appointments that remain our strongest portion of and profit side.” For Flexjet this we get from competitors like the the transition. Phenom 300s, Plumb said. are customized for individual the business. We’re continuing has translated into hiring more fact they can try Flexjet and if “We’ve had a really great Customer feedback showed airplanes so that the aircraft in to see the momentum we saw pilots and recalling all those who they’re not satisfied then they start to 2013,” she said. “We’re that some wanted to fly non- the fleet do not all look the same. in 2012.” The Flight Options were furloughed last year. can get out with a full refund in over-performing better than we stop trips from the central U.S. While DAC’s order is for all fleet stood at approximately 100 Flexjet has a variety of prod- 90 days,” said White. originally expected.” Flexjet saw to the East Coast, but while the Bombardier jets, there is noth- aircraft when the Flexjet pur- uct offerings beside fractional Flexjet’s jet card charters more business during the sec- Phenom 100 can do this east- ing that prevents DAC from chase was announced, includ- shares and jet cards. These are flown by Jet Solutions, a ond quarter versus the first, and bound, it usually needs a fuel ordering jets from other manu- ing the Nextant 400XT, Hawker include leases of shares, a jet U.S. charter company founded most new fractional share sales stop on the return trip. “The facturers. Flexjet may put in an 400 and 800, card that works like a debit card by Dennis Keith. Bombar- are new customers, she said, Phenom 300 could do it,” he order for ultra-long-range jets and Embraer Phenom 300 and and that allows travel on any dier plans to sell its 49-percent including a combination of said, “but it has higher operating by year-end. This is an interest- Legacy 600. Flight Options is aircraft in the fleet, a 90-day stake in Jet Solutions to Keith, competitive captures from other costs and too many empty seats. ing development because pre- phasing out its Hawker 800s, walkaway lease (allowing the according to White, and Jet providers and new entrants into The CJ2+ is the ideal solution.” viously Flexjet saw no need for according to Doyle, and the customer to exit the lease with Solutions will still operate some fractional share ownership. o EAS has also added a CJ3 under management to the fleet, which can be used to supple- PlaneSense’s primary area of ment the CJ2+s. The company Regional Fractionals coverage is east of the Missis- operates nine Phenom 100s and While Avantair’s shutdown dominated the news, the remaining sippi River, and that area still five Phenom 300s (that num- holds plenty of opportunity, ber is expected to grow to six U.S. turboprop fractional players are enjoying a relatively strong according to Antoniadis. “We this month). Five King Air business climate and a healthy amount of business. believe there is still adequate 350s are still a core part of the space to grow without endan- EAS fleet, and another may be PlaneSense sales and flight activity have been gering the core elements of our added, while plans call for the PlaneSense, the Portsmouth, strong, and flying from January product. We are constantly eval- remaining four King Air 90s to N.H.-based Pilatus PC-12 oper- through August is up 8 percent uating which areas we would like be phased out. ator, celebrated delivery of Pila- compared with the same period to be in next, but also concen- Flight hours jumped 50 per- tus’s 1,200th PC-12 in July. This last year. PlaneSense has “repeat- trated on building market share cent in July, compared with July PC-12NG is the 49th delivered to edly broken records for the num- in our existing area. We are vying Executive AirShare president and COO last year, Plumb said, and he PlaneSense, although the com- ber of flights per day,” he said. for clients who seek private flight seats and a Jacuzzi, we don’t offer Keith Plumb (left) and chairman and attributes much of that growth pany’s fleet currently comprises “And historically, placement to between points primarily east of that,” he said. What PlaneSense CEO Bob Taylor (right) take delivery to former Avantair custom- 30 of the single-engine turbo- outside [charter] vendors is under the Mississippi.” does offer is reliable and cost- of a CJ2+ from Lannion O’Bannion, ers signing up with EAS. “We regional v-p of Cessna sales for the props as older ones are sold after one percent.” PlaneSense’s on- Of course any type of pri- effective transportation at a Midwest U.S. and Canada. were profitable last year and logging about 6,500 hours. time departure rate is 99.5 percent vate flying is a competitor for larger variety of airports because we’re on plan to have an incred- “We’ve seen an active half (excluding late passengers or fac- PlaneSense, but PlaneSense isn’t the PC-12 is as comfortable at launch in 1995 to the compa- ible year with the CJ2+s.” EAS year,” said founder and CEO tors beyond the company’s control trying to be everything to every- a 2,500-foot strip as at a major ny’s steady focus, he said, “and currently serves 105 fractional George Antoniadis. Both share such as ATC or weather delays). body. “If somebody wants 14 metropolitan airport, offering our mission, which is to provide shareowners. travelers the opportunity to save a high-level service product for a Plumb is well aware that after time by landing much nearer to responsible price.” Avantair’s shutdown, poten- their ultimate destination. tial fractional customers might Interestingly, before the news Executive AirShare be wary of investing in a share, broke about Bombardier’s sale “We are gearing up for a sig- especially with the mess that of Flexjet to DAC, Antoniadis nificant growth period,” said resulted from Avantair’s bank- accurately predicted some of the Keith Plumb, president and ruptcy and the grounding of upcoming changes, although not COO of Kansas City, Mo.-based its entire fleet. “People are cau- the specific companies involved. Executive AirShare (EAS). tious,” he said. There’s a lit- “I believe industry consolidation While the regional fractional tle bit of resistance to writing a will occur,” he told AIN. “I don’t operator isn’t expanding its ser- big check.” But EAS has been believe there’s too much capacity vice area beyond its central U.S. around for 12 years and has and still believe there is healthy core and Great Lakes area, the grown steadily. “We show how demand for our industry. But fleet is transitioning into a larger our business model is so much sometimes there’s not enough variety of jets and fewer King differentiation….That’s why you Air 90 turboprops. may see consolidation.” EAS bought three relatively PlaneSense fields a fleet of 30 Pilatus PC-12s, which it flies mostly east of the Mississippi. The company sees plenty of demand for cost-effective flights that bring passengers nearer their destination by flying to smaller strips. Antoniadis attributes Plane- young Cessna Citation CJ2+s in Sense’s long success since its August and plans to start flying

26 Aviation International News • October 2013 • www.ainonline.com www.ainonline.com • October 2013 • Aviation International News 27 FRACTIONAL& CHARTER BANKRUPTCY STRANDS AVANTAIR SHARE OWNERS The August bankruptcy of Clearwater, Fla.-based Avantair (see article on page 8) has left the program’s more than 600 fractional shareowners without their Piaggio Avanti twin Continued from page 22 market ­turboprops. Many of the aircraft are unflyable and the FAA has suspended the airworthiness certificates of all 56 Avantis formerly in Avantair’s fleet. Piaggio America, U.S. representative of business jet deliveries by the end of the problems of illegal charter in the region. for the Italian manufacturer, is assembling a team to offer factory-authorized refurbishment period, five points higher than the fore- Also hampering charter’s growth is a plans to shareowners. Owners also face mechanics’ liens filed in state courts for unpaid main- cast from a year ago. lack of understanding of business avia- tenance bills. As of press time, six former Avantair execs were scheduled to begin providing tion. The Middle East has no regulations sworn testimony regarding business and personal finances to the bankruptcy trustee. –J.W. Middle East analogous to Part 135 or Part 91 as dis- Demand for charter flights originat- tinct from Part 121 or Part 125, though ing in the Middle East rose 4 percent association members have expressed a charter market with high-end offerings of Johannesburg-based Bombardier Global over the past year, according to Avinode. need for such separate regulations, Al their own, which should help spread an 6000 to its fleet, the first aircraft it repre- No official statistics are compiled on Naqbi said. MEBAA has commended awareness of air charter in the region. sents based in Africa. air charter for the region. The UAE advocating for a regulatory overhaul with Slovenia-based Elit’Avia has estab- ranks number 12 on the Europe-Middle regional authorities. Africa lished an office in Ghana’s capital, Accra, East list of the countries with the most But the region’s triumvirate of major Signs of the vibrancy and potential of to expand its presence in West Africa, and requested unique business jet departures. commercial carriers–Emirates, Etihad and the African charter market are all over the expects to take delivery of a Gulfstream However, requests were down 10 percent Qatar Airways–consume the bulk of the continent, though hard numbers on char- G550, a Dassault Falcon 7X and a Bom- in Saudi Arabia over the past year (17 regulatory resources of regional regula- ter activity aren’t compiled in the region. bardier Challenger 605 that will be based on the list), the only Top tory authorities such as Among the most promising indications is in Accra before year-end. Not all these 20 market besides Poland Ali Al the UAE’s General Civil the establishment last year of the African aircraft will be available for charter, as (20) to show a decline in Naqbi, Aviation Authority Business Aviation Association (AfBAA), aircraft owners in Africa, as in other requests for charter quotes founding (GCAA); the GCAA which aims to promote business aviation developing markets, are more reticent to for the period. chairman of has no unit dedicated on a continent where it’s badly needed yet allow use of their aircraft by others than Middle East Busi- MEBAA to business aviation, woefully unprepared and unaware of how are owners in the U.S. or Europe, accord- ness Aviation Associa- and the patchwork of at to put it to use. The African Union has ing to Elit’Avia’s Coulomb. tion (MEBAA) founding chairman Ali least 22 aviation authorities in the Middle granted AfBAA official observer status, Meanwhile AfBAA will hold the first Al Naqbi estimates the rate of charter East and North Africa allows many regula- making it the first association to be given business aviation expo of its own next growth in the region to be approximately tory and enforcement issues to fall through such a seat, putting “the tools at its finger- April in conjunction with the Marrakech 12 percent; 20 percent of MEBAA’s mem- cracks. Further complicating oversight of tips to be able to influence the regulatory Air Show “to bring together African bers (42 out of 208) are involved in air business aviation operations in the region environment in 56 states,” said AfBAA’s aviation companies from a wide vari- charter in some form. is the large number of foreign-registered founding chairman, Tarek Ragheb. ety of sectors,” Ragheb said. If a rising Al Naqbi sees gaining access to busy aircraft. Saudi Arabia, for example, has Meanwhile, Europe-based provid- tide raises all boats, charter will likely commercial airports as one of the big- almost 800 based aircraft. ers are positioning themselves to take be one of the biggest beneficiaries of an gest challenges facing air charter in the On a more positive note, Qatar Airways advantage of charter opportunities. In improved business aviation environment region. He has also been vocal about the and Emirates Airline have entered the air August, charter broker Vertis added a in Africa. o

28 Aviation International News • October 2013 • www.ainonline.com