Private Jet Charter News

[caption id=“attachment_312” align=“alignright” width=“300” caption=“Delta Flight 86 Enroute to Tel Aviv diverted to Boston Logan Airport Yesterday”][/caption]A Boeing 767 on a flight from New York to Tel Aviv was diverted to Logan International Airport last night when a 22-year-old man began screaming, running through the aisles, and banging on the cockpit door, a MassPort official said.

The unruly passenger identified as Itay Atmor an Israeli citizen, was forced to the floor by members of the crew and a handful of the 206 passengers aboard. The group used seatbelts to bind his hands and keep him subdued until the plane could be diverted to Boston, said MassPort spokesman Phil Orlandela.

In a rush to report a story about the sinful wasting of American Taxpayers money, one local news station erroneously reported that several banks who are recipeients of bailout money flew their high priced toys to the Masters Tournament.  Shame on them for not getting the whole story before adding fuel to this already out of control fire.  Hopefully, the lesson has been learned; no matter how good the soundbite is, it means nothing unless it can be backed up by accurate facts.  Too bad News 12 wasn’t as public with their “apology” as with the damning story to begin with.

from http://www.wrdw.com (News12)
AUGUSTA—-Last week, News 12 brought you the story of several jets that flew into the Augusta area during Masters Week that are owned by some banks that have been in the headlines lately. News 12 has since learned that while the jets are owned by the Wachovia and Bank of America, they are not operated by them. We have been told the banks have no input on where the planes fly or when.

The banks provided loan money to private individuals to buy the planes, but they are not paid off yet and thus, they are still owned by the banks. It is not much different than a mortgage or car loan. You live in the house or drive the car, but the bank still technically is the owner until you pay off the balance.

Here is a listing of this week’s one-ways.  Notice that we have JetPool aircraft heading to NBA and NHL playoff cities.  Contact us today for more info!

According to a data recently released from ARG/US, March saw an 8 percent increase in General Aviation flight activity over the previous month.  This marks the second month-over-month increase in air traffic flight data from ARG/US and further strengthens hope that this is indeed a solid recovery sign for the business aviation industry.

ARG/US, the Cincinatti-based specialized aviation-services firm, estimates that flight activity has dropped an average of 1.76 percent per month over the last 12 months, with total flight activity declining 20.45 percent in that period. Compared with March last year, business jet and turboprop traffic was down 26.2 percent last month.  So, while still down as compared to a year ago, this increase in traffic shows that the industry is taking the first tentative steps to making a full comeback.

As reported on CNN.com

An armed man, described as “mentally challenged,” took six crew members hostage after he barged onto a passenger jet at a Jamaican airport Monday and demanded to be flown to Cuba.  [caption id=“attachment_278” align=“alignright” width=“219” caption=“Hostage-taker commandeered a CanJet flight in Montego Bay, Jamaica”][/caption]A hostage-taker commandeered a CanJet flight at Sangster International Airport in Montego Bay, Jamaica.  The gunman, believed to be in his early 20s, released all passengers and two members of the crew from the CanJet plane but negotiations continued Monday morning at Sangster International Airport in the resort city of Montego Bay to secure the remaining crew members’ release.“The hijacking is that from a mentally challenged youngster and not anything that would be of concern in terms of an international incident,” said Jamaica’s Information Minister Daryl Vaz.

“His demand was to go to Cuba,” he said.  CanJet Airlines flight 918 was carrying 174 passengers and eight crew members, said Kent Woodside, the airline’s vice president. All the passengers are Canadian, he said.  The Boeing 737 flew in from Halifax, Canada, and had made a scheduled landing at Montego Bay, when the armed man boarded the plane late Sunday, the airline said. It was scheduled to continue on to Santa Clara, Cuba.  The gunman fired a shot in the boarding bridge to the plane as he entered, Woodside said.  He then took an undisclosed number of passengers and crew members hostage, said Elizabeth Scotton, a spokeswoman for the company that manages the airport.

***This episode, certainly unsettling to the passengers, serves as a reminder of a key advantage of flying privately.  Namely, the inherent security of knowing that everyone on board the aircraft has been checked against the TSA’s No-Fly list and that you will personally know each person with whom you are flying.  Additionally, when it comes to safely evacuating an area due to any political or social unrest or idustrial/natural disaster use of a Gulfstream or Hawker jet can become a case of life or death.  With emergency evacuation procedures in place, your employees or loved ones can be free from danger with as little as 4 hours notice. 

[caption id=“attachment_272” align=“aligncenter” width=“500” caption=“Full Route for 2009 \‘Speed Around the World\’ Attempt”][/caption]
As reported in CharterX Daily

Jared Isaacman and his co-pilot Doug Demko have taken off for their latest attempt at an around-the-world speed record in a light jet while raising money for the Make-A-Wish Foundation.

Airport operations at Morristown Municipal Airport in New Jersey confirmed that Isaacman’s Cessna Citation took off about 6:30 p.m. Sunday, destined for St. Johns, Canada, the first leg of the flight.

Isaacman, 26, of Washington Township, New Jersey intends to fly around the globe, more than 22,000 miles, in about 65 hours. If all goes according to plan, the jet will return to Morristown Airport Wednesday. That would break the record of 82 hours set in 1991. Light jets weigh between 6,600 and 13,200 pounds.

Landings are planned in St. Johns, Canada; the Azores; Sardinia, Italy; Luxor, Egypt; Muscat; Oman; Thailand; Manila; and Seoul, among other stops.

Last year Isaacman raised $60,000 for the Make A-Wish Foundation, which grants the wishes of children with life-threatening illnesses, but fell short in his attempt to break the speed record.

Isaacman is the founder and chief executive officer of United Bank Card Inc.

Donations can be made online at http://www.speedaroundtheworld.com.

Isaacman will use funds from his company’s account to match all donations on the Web site up to $20,000.

The Masters Golf Tournament is once again proving to be a major draw for golf fans around the country. 

A quick glimpse of the air traffic shows many Gulfstreams, Hawkers, and Learjets heading to Augusta this morning.  There is still time to organize your trip to the tourney - A Hawker 1000, 8 tickets to The Masters, VIP ground transportation, and special on-board catering from New York is still only $2900 per person*.  Imagine winging your way to Augusta tomorrow morning, where the temperature is going to be close to 80!  Spend a whole day watching your favorite players battle the bunkers, hazards, greens, and pressure of the worlds’ most famous golf course.  Then, jump in the limo for a quick ride back to your luxuriouos private jet for a short flight back to NYC and a full weekend with the family.  Hey the Jet Set do it, why not you?

*pricing for jet based upon 8 passengers

As reported in CharterX Daily

NBAA President and CEO Ed Bolen commended Senator Sam Brownback (R-KS) for taking to the floor of the Senate late last month to remind his colleagues of the value of business aviation for citizens, communities and companies across the U.S.

“The people of the business aviation community applaud Senator Brownback for explaining what business aviation is all about, and correcting some of the misstatements and mischaracterizations about business aviation that have recently been made,” Bolen said.

In his remarks, Brownback told his colleagues: “Some federal officials have recently been making use of business aviation a matter of derision. Well, there is a lot of good that this business—a U.S.-dominated business—does, and we ought to support it, not hurt it.”

To illustrate his point, Brownback noted the following, among other facts:
• Business aviation employs more than one million people in manufacturing and support services.
• Many companies rely on an airplane to conduct business across a number of different locations, which are often located in areas without robust airline airline service.
• Of the nation’s 5,000 public-use airports, only 500 are served by the commercial airlines, making business aviation the only option for accessing most airports.
• Eighty-six percent of people aboard business aircraft are not a company’s senior officials, but are mid-level employees, including salespeople, engineers, or other technical specialists.
“Whether its a piston or a jet, it [a business jet] is often what ends up connecting a lot of people on a rapid basis throughout the country,” Brownback said. “Without the use of business aircraft, you’re going to have a lot more inefficiencies in companies; you’re going to have a lot more difficulty getting people from point A to point B.”

Bolen agreed, adding: “Business aviation is an essential tool for many companies to be productive and efficient, which is especially critical in this economic climate. But as the senator also pointed out, business aviation means jobs for more than a million people. It provides a critical lifeline for communities across the country, many of which have lost some or all of their airline service in the past year. And, it supports humanitarian initiatives, including medical transport for people in need and delivery of relief and supplies for victims of natural disasters. We thank Senator Brownback for recognizing these facts in highlighting the essential role of business aviation in America today.”

 
A few weeks ago I wrote a blog supporting the use of Air Force One by President Obama.  Recently, reports have resurfaced about Speaker of the House Nancy Pelosi’s use of private jets, specifically the “demand” that she be shuttled around in a Boeing 757.  To be clear, in 2001, the BUSH Administration enacted the policy that for security purposes, the speaker of the house (and 3rd in succession) would travel in VIP military transport.  Nancy Pelosi typically travels aboard a C-20, which in military parlance is really a Gulfstream III or Gulfstream IV.  “Pelosi has used the Air Force equivalent of a Boeing 757 to fly between Washington, D.C., and her San Francisco district. But she has done so exactly once, when no smaller aircraft was available, according to Air Force spokesman Eric Sharman.”, as reported on FactCheck.org.
Again, we are looking at private aviation as a target of political vitriol from those against any kind of corporate bailout.  Perhaps if these same critics from the House and Senate were forced to travel exclusively by commercial airlines, the greater flexibility, range, speed, security, comfort afforded by private jets would seem less of a perk and more of the essential business tool that they really are.

[youtube=http://www.youtube.com/watch?v=J64Qf3np5XA]

Everyone seems to have an opinion on this so I thought that I would share mine.  Admittedly, as the owner of Executive Charter Services, a private jet charter agent, I have a significant amount of bias when it comes to individuals and corporations making use of private jets such as Gulfstreams or LearJets.  But after you clear away the hyperbole and the pithy sound bites what remains is that the proposed recipients of the “Bailout” money are companies who find themselves in dire financial trouble.  I’m not arguing how they wound up in this position, nor past usage of the company jet, but now - RIGHT NOW, is when private aviation is going to be most crucial to the survival of these companies.

The ability to travel from meeting to meeting with efficiency and rapidity, hold high level discussions en-route, and minimize lost productivity while away from the office is precisely why private jets are utilized.  You don’t see President Obama schleping around on Southwest, do you?  No, the taxpayers foot the bill for Air Force One and we are happy to do it.  We know that AF1 provides speed, security, and safety, to the most important American during this important time in our history.  While the media enjoys proclaiming private jet usage as the ultimate in wasteful spending, it is often more cost effective to charter a private jet than to fly commercially.  When all of the factors are taken into account - lost productivity, lodging, meals, rental cars, etc - the private jet becomes a true business tool.  (SEE BELOW FOR A CASE STUDY) But the media isn’t interested in that, the close detailed comparison would take too long and besides, it’s much easier to jump on the bashing bandwagon.

I will be among the first to admit that there has been and most likely will continue to be misusage of corporate controlled private aviation, but let’s not force troubled companies to add to their difficulties by arbitrarily compelling them to travel via commercial airlines.  I haven’t even mentioned the economic impact that the aviation industry and the private aviation sector have on the US Economy.  Billions of dollars of lost revenue, taxes, and jobs will result from a massive curtailing of the industry.

Yes, I agree oversight is needed and a more careful approach to determining the right use for a private jet is appropriate, but I also maintain that stopping use of private aviation altogether will ultimately hinder the recovery process.

CASE STUDY
A senior partner and five attorneys from a large and well known law firm based in Manhattan needed to fly from New York to Macon, GA for a full day of depositions and dinner with the client. The earliest airline flight with connection to Macon departed at 8:30 a.m. wouldn’t arrive until close to noon, forcing the quintet to depart New York the previous evening. Additionally, there were no flights departing Macon connecting to New York after 7:00pm which meant that they would have to spend 2 nights in Macon and leave the following morning for arrival at 10:30am back in NY. They contacted Executive Charter Services for assistance in determining if using a private jet would be cost effective.  We quoted a charter flight price of $9,475 for a seven-passenger Hawker 400XP business jet. The lawyers departed from Teterboro, NJ, near their homes, at 7:15am and arrived at the client’s office by 9:30am.  Because the five polished the questions for the deposition and worked on other cases while in the air, they were productive and billing during the 2 hours that normally would have been lost to travel.  After a full day of work and early dinner with the client, they departed Macon at 8:00pm, summarized the deposition on the way home, and were back on the ground in New York by 9:45 p.m.  While the cost for last-minute commercial tickets was about $4000 less than the price of the charter, the firm was able to add back 15 hours of billable time, saved the cost of 5 hotel rooms for 2 nights, and had 5 well rested, fresh, and happy attorneys who spent the night at home with their families.  In the end the private jet was actually $685 less than the commercial airline, making it a clear choice that chartering was the right option.

With February school vacation and spring break rapidly approaching, now is the time to start thinking about the family vacation.  As you and your adult companions enjoy cruising to your destination without the hassles of the commercial airports, take time to remember what it was like to travel as a child.  Hours of limited personal space with little to do conspire to turn even the most well behaved child into a whining, discontent, fidgeter.

[caption id=“attachment_162” align=“aligncenter” width=“206” caption=“Some Travel Essentials”][/caption]

So for this travel season be sure to think of the little ones.  Most private aircraft are now equipped with lavish entertainment systems ranging from private in-seat monitors found aboard light jets such as the Beechjet 400 or Hawker 400XP to massive flat panel displays on the larger jets such as the Gulfstream 400/500 and Global Express.  Many aircraft even allow you to connect your child’s own gaming system to the on-board monitors.

Additionally, while you may enjoy a nice grilled Parmesan Encrusted Portobello Mushroom with White Truffle Oil, the kids will most likely just want some PB&J.  Fresh baked cookies and some sandwiches will do wonders to keep the blood-sugar up and the tempers down.
[caption id=“attachment_170” align=“aligncenter” width=“131” caption=“Emergency Tantrum Control”][/caption]

But, whether jetting off to Spring Training in Florida or winging your way to the ski slopes of Colorado be sure to give the kids headphones so you can enjoy a blissful beginning and end to your vacation.

Within the past 8 months, the US Air Charter Market has suffered from the perfect storm of exceptionally high fuel prices, a sagging economy, and bad press.  Fuel prices reached their highest in mid-July 2008 and have since retreated significantly, but at that time, a gallon of Jet-A fuel was going for about $7.50 in New York and California.  The economy has been a wreck for several months now with story after story of corporate greed and monumentally bad leadership leading up to a major credit crisis followed by drastically decreased consumer spending.  Additionally, the federal government is attempting to depict anyone using a private jet as an evil corporate fat cat.  What does all of this mean for you?

The net result of this trifecta is that charter companies are becoming increasingly willing to negotiate prices on private jet charters.  With a surplus of charter agents and companies in the industry coupled with a diminished market, the pressure to locate and secure charter business is leading to a buyers market.  Many companies are also offering extras such as complimentary catering, ground transportation, and even spa certificates.  Here are some sample prices of current one-way charters being offered:

Expect these prices to hover right around this mark for as long as the market continues to be bogged down. 

Even taking a Private Jet to Super Bowl XLIII can present travel challenges.  With over 1000 Gulfstreams, Hawkers, and Beechjets expected to descend upon the Tampa area parking and ramp space at Tampa International Airport will go fast.  Luckily, there are other options.  Within a 40 mile radius, there are 4 other airports with runways suitable for private aircraft. Airports such as St Petersburg/Clearwater Airport, Vandenberg Aiport, Hernando County Airport, or even Lakeland Linder Airport will help alleviate some of the traffic and congestion.

By using the smaller feeder airports, you can eliminate most of the delays associated with the massive amounts of aircraft all trying to depart TIA at the same time. With departure delays of up to 6hrs after Super Bowl XLII, the 45 minute drive to Lakeland might not seem so bad, after all.

[caption id=“attachment_99” align=“alignnone” width=“128” caption=“Chrysler and Ford CEO’s testifying in Washington,  11/19”][/caption]Much hay is being made over the fact that the leaders of the Big Three U.S. auto makers utilized their private jets to travel to the hearings discussing the potential bailout of the auto industry.  One member of congress highlighted it as another example of corporate excess and likened it to the AIG Retreat last month.  I disagree.
A private jet is a true and valuable business tool.  Use of a private aircraft, either in-house or via private jet charter, allows for complete schedule control, flexibility, privacy and security, and efficient and productive use of travel time.  What do you supposed would have been said by the lawmakers who so smugly demanded to know why the CEOs did not fly via commercial airlines, when, having done so, one of them missed the flight, or the flight was delayed so long as to postpone the hearing?  Would there have been talk of how lightly the CEOs were taking the situation?  Use of the corporate Gulfstream was the most certain way to guarantee that the company leaders would be at a hearing to discuss one of the most important times in the history of their respective corporations.  While the AIG Corporate Conference could have been held anywhere and certainly without the uses of hundreds of thousands of dollars in spa treatments and golf outings, getting the major decision-makers together to discuss the best use of bailout money was vitally necessary to the health and future of the company.  The same can also be said of this situation. 
There are, also, security and privacy issues at hand here.  Most major corporations forbid senior executives to fly aboard commercial airlines, because of the higher risk of the unknown.  For example, who is on the plane with our CEO?  When did the pilot fly last?  Is the crew fatigued from the last flight? Has the maintenance been performed on this aircraft correctly?  A corporate flight crew/department knows the answers to all of these questions.  A multibillion dollar company in the deep throes of economic peril cannot take the risk of losing its Chief Operating Officer to a risk that could have been mitigated by using a private jet.  Finally, while flying aboard a commercial airliner is certainly cheaper, it would simply have been impossible for the CEOs to do any meaningful preparation or have any meaningful discussions regarding the hearing they were about to attend.
I contend that profligate and unnecessary use of private aviation by companies in economic turmoil is not only irresponsible but shameful, however by enabling the key people to visit clients, tour production facilities, perform road-shows, and help sales forces reach new markets smart and judicious use of the company Gulfstream or Hawker will add significant value to the bottom line.