Tiger Woods flies around in a G550 (NetJets), the Google boys and Paul Allen use 757’s as their private jets, President Bush uses a 747 (Air Force One).  None of those planes were big enough for Saudi Prince Alwaleed Bin Talal.  Nope, the Prince has ordered the double-decker, brand new Airbus A380. 

This plane is HUGE.  Set up for regular passengers it can seat more than 800 passengers.  The way the Prince will configure it sounds like he expects to travel with 40-50 friends… in style!  The plane goes for $300 million and change.  That’s just the plane.  Then the Prince needs to get a designer to layout the inside so that it’s fit for oil royalty to spend long flights on board.  One challenge will be that there aren’t even that many airports in the world that can handle this plane!  So much for the ability to drop in on a tiny island.  The plane requires a long runway and special equipment to get passengers on and off. 

The purchase is actually an upgrade for the Prince who evidently felt cramped in the 747-400 he currently has.  The A380 has actually been a long time coming.  Airbus has been challenged to deliver the plane to customers that have ordered it.  In fact the Prince likely won’t take possession of his new flying palace for several years.

Here’s how you and I might see the A380:

Here’s how the Prince’s version might look:

What is an “empty-leg”? Simply, it’s when a private jet is flying empty in order to reposition.   Different than your car, which normally sits and patiently waits for you after using it, a jet needs to return home.  If your trip is short, then it may make sense for the jet to stay with you.  Just remember, that means two pilots need to stay with you as well.

The round trip conundrum is really one of the things that makes flying private so incredibly expensive.  People hear that jets cost about $4K per hour to operate.  So they figure that it’s a 3 hour flight Florida to NYC = $12K.  HOWEVER, not the plane has to GET HOME.  So really you’ll be paying for a round trip.  If your trip is short (3 maybe 4 days). It might pay to have the plane sit with you ($400-800 per night that it sits… remember your feeding and boarding two pilots and a jet.)  However in most cases the plane will need to go off and either fly home, or fly other customers.

Many “newbies” to flying private think they should be able to get one of the “empty -leg” or repositioning flights for a song.  While they can sometimes be as much as 30-40% off, they are inflexible since you have to travel on someone elses schedule.  And 30-40% off is STILL really expensive.  Here’s how the industry has decided to make this situation more efficient:

One-Ways: This is a price that gives a discount to the consumer if they are not going to need the return trip.  Basically when a broker or operator gives a one-way price, it will normally be about 25% less than their actual cost to fly both ways.  then, they go out and try to find someone to pay for the “empty-leg” at a savings of about 30-40%.  This actually allows a broker or operator to “double dip” by taking risk on the “back end” of a flight.  Sometimes this can work out really well for the consumer.  The key (like with most travel discounts) is to be flexible.

Some of the “flight programs” (Sentient, NetJets, Etc) build in this one-way pricing into their hourly rate models.  In some cases they make a ton of money, in others, they can lose a ton of money.  By charging the same hourly rate for a trip to somewhere they can fill the back end, vs.  somewhere the plane will certainly fly home empty, they are gambling.

SO, when you’re out there shopping for the best deal on either a program or a specific flight.  Remember, empty-legs are able to provide a decent discount, but you give up a ton in flexibility.  Looking for one-way prices can some times help keep the costs down too.  Just remember, the provider is trying to make money off the “back-end” of your trip.

If you have questions about empty-legs, feel free to email emptyleg@privatejetnetwork.com

Flight Options a fractional ownership operator has a new owner: Miami-based HIG Capital.  The company is planning on growing via ordering jets from Embraer that could total more than 10 in the next 10 years.

Flight Options is the second largest fractional operator behind NetJets.  their previous owners are the aircraft manufacturer Raytheon.  The deal should be done by the end of the year. Q3 2007 was the first quarter the company has made a profit, which is a challenge amongst all the fractioanl operators.  The company has been in business for ten years. 

“Over this period we have moved from being a company that lost 18¢ in every dollar to turning an operating profit and one that offered 13 fleet types with 23 different cockpit to four fleet types and four cockpits - Hawker 400XP, 850XP/900XP, Cessna Citation X and [Embraer] Legacy 600,” says Flight Options chief executive Michael Scheeringa.

“Our new owners share with us the same view about how we are going to grow,” he says. “We now have the best economic platform from which to develop and launch new products and grow Flight Options well in to the next decade.”

Flight Options will get into the on demand charter game on 12 November.  Without many details the company indicates it will offer a “one-stop shop” for current fractional or charter card customers.

Flight Options has 1400 shareowners that co-own the fleet of 130 aircraft.  Flight Options also recently started offering a business aircraft management program.  this will evidently compete with other operators looking to manage business aircraft.

Very Light Jets (VLJs) are the most talked about thing in private aviation these days.  No one knows for sure how they will be integrated into the private jet fleet.  Their price point (currently between $1.5 mm – $4mm) is quite a bit less than any “light” jet currently available.  Air Taxi is the most visible way this plane is being put into service.  Air Taxi companies are effectively buying these planes with the idea that they can charge people to fly them around (like an on demand airline).

Some of the reasons there is so much debate about how these planes will ultimately be used include:

• Costs: yes, these planes are available for sale at a lower price point, but how much lower will their maintenance and operating costs be? Especially if they’re flying under Part 135 (with paying passengers) they’ll be required to have 2 pilots.
• Comfort: These planes are SMALL.  Some of them don’t have any bathroom facilities at all.  This concern is mainly offset by the fact people will use them for short flights only.  This is yet to be seen.
• Traffic: This is definitely the most unfounded concern.  These airplanes will take off and land from airports that are out of the way.  That’s why people want to fly in these planes is to get to out of the way places! So the idea that the airlines would have you believe is silly that these planes will cause traffic jams for commercial flights.
• Range: Many of these planes promote their flight ranges at maximum altitude (35K plus feet).  However, on many trips ATC won’t let these planes get to that altitude.  Flying at lower altitudes will certainly affect their range adversely.
• Delivery: These planes aren’t due to hit the airways for years to come.  While some manufacturers (Eclipse and Cessna) are successfully delivering airplanes, many others won’t be in the hands of customers for years to come (Honda, Adam, Embraer).

All in all however, these planes are a fantastic thing for general aviation.  The technology going into them makes for a really great product.  Many pilots who now fly little turbo prop planes will be overjoyed by the difference in flying a jet from a prop plane.

The interest and demand for these airplanes plays into the interest and demand for private jet transport overall.  They are trying to help with the democratization of private jet travel.  AS flying the commercial carriers becomes more and more painful, having access to more affordable private planes operated on the customers terms will huge.

My personal prediction is that the VLJs will simply create yet another category in the charter marketplace.  These air taxi companies will ultimately operate like current 135 operators.  Many owners will buy the planes and them charter them out to offset some of their costs.

No matter what, it will be interesting to see what happens as more and more VLJs are delivered and begin flying around the country and the world!

 Cessna Mustang

 Adam Aircraft interior

 Eclipse 500 interior

There is probably no other status symbol to “making it” than flying in a private jet. More than playing to egos however, the convenience and potential value it provides truly are remarkable. In fact Warren Buffet, who is famously frugal with his lifestyle, says the one luxury he would never give up is flying private. So how does it work? How much does it really cost? The following is a summary that helps to describe the marketplace and private jet industry.

There are many different varieties of planes to chose when you fly private. What plane you choose is normally dependent on the profile of your trip (or in airplane terms your “mission”). For example, flying from Miami to Key West with your business partner (instead of driving) would be a much different mission than relocating your family from the East Coast out to LA. Some missions can be accomplished with a turbo-prop plane, while others require a larger jet that can either carry a heavy load or fly long distances.

These differences are important to remember as you consider flying private, primarily because of price. Another factor to your decision is taste and preference. There are some clients who refuse to fly in a turbo-prop no matter how short the distance, and some who prefer the roominess of a larger plane even when they don’t need the space. Hey, why not!? If you’re treating yourself to the luxury of flying private it’s your prerogative to get what you want (just be prepared to pay for it!)..So how much does it really cost? Different than your car where you may or may not worry about your operating costs per hour or mile, this is how flying is priced. Depending on the kind of plane you use for your mission, the cost will be anywhere between $1000 -$6000 per hour. The biggest chunk of that cost is fuel (jet fuel costs more than gas, average is $4.80 per gallon).

Those are going to be your ball park costs whether you buy a plane, a fraction of a plane, pre-pay using a card program or just buy an on demand charter. What you choose from those categories really depends on the frequency you plan on flying, the kind of flying you’ll be doing and your financial situation.

All aircraft that are operated in the US must gain certification from the FAA. This establishes whether the plane is allowed to fly its owners (Part 91) or if it can also fly paying passengers (Part 135). However, similar to how all drivers are required to have licenses, all pilots and operators are not created the same. Therefore, a third party objective industry has grown to establish the safety levels of people who operate private aircraft.

These companies “audit” the operators and provide designations depending on the result. The audits are voluntary but if a operator does not have any designation other than their certificate from the FAA you should think twice about flying with them.

Here are some links to the three primary auditing firms.

• ARG/US
  
• Wyvern
  
• Flight Safety Foundation
  

Prior to flying on any flight, your provider should be able to provide a detailed report from one of these agencies. Some of the reports will detail how many hours the pilot has in total, on that particular airplane (and if they have any incidents). The reports will also show the age of the aircraft, and how many times it’s taken off and landed. In fact it can be over whelming to go through all of the information available once you start looking. A good choice is to work with one of the providers we recommend as they filter this information for you in order to give you the confidence you want in your decision.

There are basically 4 ways to get involved with flying private:

1. Buy a Plane
2. Buy a FRACTION or a plane
3. Buy a membership to a program that gives you access to planes
4. On demand charter (pay as you go)

Buy a Plane

Buying a plane is a big commitment. Generally the low end of buying a jet will start at $4 million for an older model light jet and go up to $35 million for a more modern heavy jet. After acquiring the asset you’d then need to decide how to have it managed. The easiest way to have a plane managed is chose an operator. The alternative of creating your own flight department and hiring pilots, etc. can represent a pretty steep learning curve.

Buy a Fraction of a Plane

Buying a fraction of a plane is an easy way to enjoy many of the benefits of owning a plane without many of the hassles. These programs generally allow you to get involved at significant savings to owning a whole aircraft.

• More About Fractional Ownership

Card Membership

Card membership is a way to commit to a certain amount of flying without having to buy into owning anything. Generally card programs either give access to a fractional fleet of planes or arrange flights in the open charter fleet.

• More About Card Membership

On Demand Charter

On demand charter takes advantage of the thousands of aircraft that air openly available in the charter fleet. Generally finding these aircraft is done by working with a broker who can save time and money as opposed to a consumer calling the operators of the aircraft directly.

• More About On Demand Charter

Yesterday Hawker Beechcraft Corp. sold its FAR Part 135 (cert. # ERYA682D) on-demand air charter unit, Hawker Beechcraft Charter and Management Inc. to Sentient Flight Group, LLC. “Hawker Beechcraft decided to focus on its core business of manufacturing and delivering aircraft; we’re in the process of final certification for six aircraft models,” said spokesperson Mike Turner.

“I believe Sentient plans to rename HBCM to RACM, however, I don’t know what the acronym stands for,” Turner said. He says to the best of his knowledge, HBCM has operational control over air charter flights and that charter passengers can still fly on aircraft approved for charter.

(Hawker/Beechcraft airplanes)

On October 25, 2007, XJet World from Englewood, CO (www.xjetworld.com) and OneSky Jets of Manchester NH (www.onesky.com) announced a strategic alliance.  They are launching a network of Charter Clubs at select locations offering members various jet services. The goal is to provide access to XJet’s land-based facilities and high end services, special options on aircraft, and special block time options. The Club also enables members to leverage OneSky’s network of charter operators and technology.

They open this fall at Centennial in Denver, Colo. They plan to offer a world-class private flying experience. The next club opens at Gerald R. Ford International Airport, Grand Rapids, Michigan, next summer.

The Charter Club concept is a service focused, technology enabled private jet solution that offers many benefits of fixed rate/ block time with the flexibility of on-demand charter. 

“This unique Charter Club concept combines our companies’ complementary strengths to build an exclusive network offering our members flexibility, choice, reliability, and quality in private jet travel,” said Josh Stewart, President of XJet. “OneSky is a natural partner because of our shared commitment to the very highest standards of service and our dedication to exceeding the expectations of private jet travelers. OneSky provides a vital piece of the total jet management solution for XJet members.”

Greg Johnson, OneSky’s President and CEO, said, “This strategic alliance brings together the strengths and vision of our respective companies, which are both committed to redefining private jet travel with full transparency of information and operating with genuine respect for their members. We are two companies with a single commitment: providing the very best travel experiences to our members.”

XJet members will get to use OneSky’s services when seeking to arrange charter hours for their aircraft or to find charter options for themselves to meet their own charter jet needs.

For member’s of OneSky the partnership with XJet gives access to more charter aircraft, better aircraft availability, and access to XJet’s facilities being developed worldwide.