Private Jet Charter News

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.

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.”

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!

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.

[caption id=“attachment_363” align=“alignright” width=“150” caption=“Construction Planned at Teterboro Airport”][/caption]Recently, I talked about potential hiccups to your jet charter travel this summer.  One issue we heard about several months ago, but is rapidly approaching is the pending runway construction at Teterboro Airport. 

Teterboro Airport is planning a major reconstruction of runway 6/24 in the next few weeks..  The rehabilitation will require airport closures for all private jets and turboprops for three weekends, as well as five nighttime closures from 11:00pm to 6:00am.  The scheduled dates are currently July 10-12, and July 17-19, as well as a 24 hour closure to be announced.

Fortunately, there are other options for New Yorkers.  Westchester Airport, Morristown Airport, Essex County Airport, Ridgefield Park Airport are all within a 45 minute drive of New York City.  Don’t forget, private jets are also welcome to use Newark, LaGuardia, and JFK airports as well.  Executive Charter Services will be watching the situation closely and will provide updates as necessary, so before you plan your next trip to Martha’s Vineyard, Nantucket, or the Hamptons, check back for news.

As recently reported, Teterboro Airport, will be closed for runway repairs in July. The rehabilitation of Runway 6/24 will cause the complete closure of the airport to all fixed-wing aircraft (I.E. Private Jets!) as per the following schedule taken from the FAA Website:

FRIDAY, JULY 10, 2009 through SUNDAY, JULY 12, 2009:
Runway 1/19 and Runway 6/24 closed from 2300L 7/10/09 (0300Z 7/11/09) to 1100L 7/12/09 (1500Z). AIRPORT CLOSED TO FIXED WING TRAFFIC DURING THIS TIME.

FRIDAY, JULY 17, 2009 through SUNDAY, JULY 19, 2009:
Runway 1/19 and Runway 6/24 closed from 2300L 7/17/09 (0300Z 7/18/09) to 1100L 7/19/09 (1500Z 7/19/09). AIRPORT CLOSED TO FIXED WING TRAFFIC DURING THIS TIME

All aircraft (except helicopters) heading to the NY Metro area must make use of other local airports such as Westchester Airport, Morristown Airport, Essex County Airport, and Ridgefield Park Airport.  Don’t forget, private jets are also welcome to use Newark, LaGuardia, and JFK airports as well.  While Teterboro’s closure will cause some headaches, proper planning and foresight will keep the delays and inconveniences to a minimum.

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.

Manufacturer of new anti-jet-lag drug sponsors private jet trip

Pharmaceutical companies are always looking for two things - people to participate in their clinical trials and new ways to market their products. It appears as though the manufacturers of a new medication to treat jet-lag may have accomplished both by treating participants to a free Gulfstream private jet ride to Paris. Cephalon, an international biopharmaceutical company dedicated to the discovery, development, and commercialization of many unique products including central nervous system disorders makes a drug called Nuvigil. Ads started appearing over the summer in New York newspapers with the following question: Want to fly to France and get paid $2,500 for your trouble? The testing included 3 days in Paris for a study on the effects of jet lag. The only catch was that you don’t get to see the sights of Paris. Recently, a dozen strangers were jetted to Paris in a private Gulfstream jet. Once at a Paris testing facility participants were given Armodafinil. Their alertness and other functions were measured repeatedly during the three-day stay. Participants had a great time and enjoyed their cross-continental jet travel.  I’d have to think that a free, pampered flight in a luxurious Gulfstream Jet might tend to skew the results a bit, though.