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. 

[caption id=“attachment_345” align=“alignright” width=“115” caption=“Regatta Racing Off Martha\‘s Vineyard”][/caption]Memorial Day Weekend, traditionally signifes the start of summer travel for the Jet-Set.  The weekly exodus from to Martha’s Vineyard, Nantucket, West Hampton,  Lake Tahoe, Las Vegas, and the Mexican Riviera begins as elite travellers exchange the heat and congestion of their respective cities for quiet, comfort, and luxury.  While travelling via private jet charter is usually quick, convenient, and easy, the summer months bring some additional challenges of which to be aware:

Weather - Summer thunderstorms can really shake up the best laid travel plans.  When the heat of a long day of summer sun combines with increased humidity and unstable air, thuderstorms are likely to pop up.  Typically, the storms start to build in the mid to late after - or right when your Gulfstreams and Lear Jets are scheduled to depart to whisk you to your weekend getaway.  By moving your departure time up a few hours to late morning or very early afternoon, you can typically avoid the delays associated with the weather.

Congestion - it’s no surprise that Thursday and Friday afternoons are the most heavily travelled days at your local executive airport.  Analysis at Teterboro Airport, serving the NYC metro area, shows a 20% increase in the amount of jet traffic on a typical Friday afternoon as compared to Wednesday.  Again, plannning your flights to miss the heavy traffic periods will help shorten your potential wait for takeoff.

Special Events - From the Indianapolis 500 at the beginning of the summer, through all the special events such as MLB ALL Star Game, US Open, and Wimbledon, to the World Series at the end, attendance will be high.  Jet arrivals into these host cites can sometimes be chaotic, so plan accordingly.

While these challenges can be detrimental to your schedule and impact your time away, remember that you are travelling by private jet and that it’s really not all that bad to be you.  Have a great summer!

Richard Santulli, chairman and CEO of NetJets Inc., announced late last week that he is stepping down from the private jet company controlled by investor Warren Buffett.

Richard Santulli, chairman and CEO of NetJets Inc., announced late last week that he is stepping down from the private jet company controlled by investor Warren Buffett. “After 25 yeas of working with the most talented group of people I could ever have imagined, who helped build the premier aviation company in the world, I have decided to step down as chairman and CEO of NetJets immediately, in order to spend some more time with my young family and pursue other interests,” Santulli said in a statement.
NetJets had become popular with Wall Street and corporate executives as well as athletes such as tennis star Roger Federer, who has been a spokesman for the company. The company had posted growing revenue for many years, until recently, but often struggled to turn a profit. Berkshire said revenues from flight operations at NetJets had increased by 596% since its purchase, although “profits had been erratic.“The company’s business was hit hard by the recent recession. In its 2008 annual report, Berkshire said NetJets “experienced significant reduction in revenue as general economic conditions worsened.”

Buffett said he had accepted Santulli’s resignation “with reluctance.” He named David Sokol, a close associate considered a possible successor to Buffett at Omaha-based Berkshire Hathaway, as an interim replacement for Santulli. Santulli will stay on as a consultant for at least 12 months to assist in the transition, he said.

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.