Private Jet Charter News

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. 

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.”

from NBAA - No Plane No Gain campaign:

The people and companies that rely on Private Air Charter know that utilizing a private jet is a valuable strategic choice, particularly in an unforgiving economic and political climate.  However, those outside of the business aviation community are often unaware of the benefits that chartering a private jet can provide.  When reviewing your air travel choices, use this checklist to see why using private jet charter is the best option for your mission.

 This flight absolutely cannot be canceled or delayed significantly.
 The destination is not easily served by commercial airline service.
 Need the ability to work and communicate aboard the flight.
 Proprietary information will be discussed aboard the flight.
 Need the ability to visit several cities in one day.
 Need the flexibility to allow for changes in the itinerary.
 Carrying specialized parts/equipment

If you’ve found yourself agreeing with these statements, you will want to investigate chartering a private jet for your travel needs.  In many cases, particularly with several passengers going to the same destination, a private aircraft can be as cost-effective as utilizing commercial airlines.

The premier event for business aviation, NBAA’s Annual Meeting & Convention brings the business aviation world together each year.

The premier event for business aviation, NBAA’s Annual Meeting & Convention brings the business aviation world together each year. NBAA2009 will be held from October 20 to 22 in Orlando, FL, at the Orange County Convention Center, with a static display of more than 125 aircraft at Orlando Executive Airport. Over 30,000 representatives from every segment of the business aviation industry, from 82 countries around the world, will be present at this one-of-a-kind event.  You can expect to see NetJets, Marquis jet, Sentient, as well as Gulfstream, Hawker-Beechcraft, and Cessna all displaying their wares.

NBAA09 is especially important due to the economic and political climate private aviation has found itself in over the last 12-18 months.  With private aircraft singled out by congress and shareholders as extravagant wastes many corporate flight departments are fighting for their lives.  A main goal of the convention will be to help change public opinion regarding these essential business tools from being labeled as “private jets” to the more applicable and politically-correct “business jet”.

I will be attending the conference and will provide an insider’s perspective into the show and the “state of the union” for general aviation.  Follow me on Twitter (bizjetkev) for special coverage and offers during the convention.