Joe Sharkey of the New York Times wrote an article recently on why a corporate jet sometimes makes sense. He mentions past events that cast a shadow on business aviation, and then argues valid economic reasons exist for using company aircraft:
“As commercial air service shrinks, with even some midsize markets losing much of their air service, the business use of a company airplane can make bottom-line sense…Take Jimmy John Liautaud, the founder of the restaurant chain Jimmy John’s Gourmet Sandwiches, which has about 1,000 franchises around the country. Mr. Liautaud’s company owns two jets, a Challenger 300 with coast-to-coast range, and a smaller Learjet 40. He also uses Flexjet, the business jet fractional-ownership and charter company, to buy hourly time on another Learjet when he needs extra capacity. Mr. Liautaud says his employees take commercial flights when that makes sense. But the fast-paced nature of his business also argues for using the company jets every day.”
You can read the entire article on the New York Times web site.
Business for London Executive Aviation (LEA) is booming because of the disruption from the Iceland volcano ash. As commercial airline flights are disrupted, corporate and private customers of LEA can use business jets that fly out of uncrowded general aviation airports.
LEA chief executive Patrick Margetson-Rushmore said:
“In this situation, business jets come into their own, and we have seen a tremendous rise in bookings…Our business jet fleet was able to respond immediately when airspace reopened…Because we fly point-to-point, can land at thousands of airfields near our customers’ final destinations and have such quick turnaround times…”
KIRO 7 News from Seattle, WA, did some homework on business jets parked at Boeing Field during Microsoft’s annual CEO Summit to try and find out who is attending the private event. Some of the aircraft include jets belonging to General Electric, Paramount Pictures, eBay and the Russian Standard Bank, as well as a Boeing 747 listed with Saudi Arabian-based Kingdom Holding Company. For video commentary from Kiro 7’s chopper, you’ll want to check out their news story.
by Matt on April 30, 2010
TD Waterhouse says NetJets, a fractional business jet ownership company, expects European demand to begin increasing this year.
“‘What we’re seeing this year is that flying activity is picking up as people become more certain about how they’ve come through the crisis,’ Mark Wilson, chief operating officer of NetJets Europe, told Reuters in an interview.”
Most NetJet customers are corporate and entrepreneurs, while the remaining are the world’s super-rich (Tiger Woods is a customer).
While the number of customers has remained the same, the number of hours spent in the air by those same customers dropped.
by Matt on April 29, 2010
The Economic Times says Bombardier Aerospace’s president, James Hoblyn, is expecting to sell around 250 business jets in India over the next 10 years. So far, the company has sold 29 business jets in the region.
by Matt on April 28, 2010
Bloomberg BusinessWeek reports Textron Inc. (which manufacturers business jets as well as other products) posted a first-quarter net loss that was smaller than some analysts estimated.
“The net loss of $8 million, or 3 cents a share, compared with net income of $86 million, or 35 cents, a year earlier. Profit excluding some items was 5 cents a share…The average estimate from a Bloomberg survey of analysts was for a 1-cent loss.”
by Matt on April 28, 2010
As we reported in September 2008, Thailand’s first private jet terminal is now open for business. With a luxury lounge, two hangars, and a variety of services available, the terminal is ready to attract luxury travelers to Bangkok’s Don Mueang International Airport.
With jet traffic on the rise from owners in China and India, the terminal could be in a position to benefit says Dan Castillo from Private Jet Daily.
by Matt on April 26, 2010
Based on Federal Aviation Administration statistics, the number of business jet flight operations has fallen steadily since 2007 (11% in 2008, 19% in 2009). However, Michelle Leder of the New York Times says the numbers increased in both last December and January (based on previous year’s numbers).
“Doug Oliver, a spokesman for Cessna, which is based in Wichita, Kan., and is known for its Citation business jets, said that while Cessna did not expect orders to pick up until 2011, he was seeing a few positive signs in an industry known for its cyclical nature. Some of that growth is coming from overseas, including India and Brazil…’The downturn just whacked us and everyone else,’ said Mr. Oliver. ‘But there are pockets here and there that are promising, and cancellations have slowed.’”
by Matt on April 22, 2010
Abu Dhabi’s Royal Jet has signed an agreement with the Al Habtoor Group from the UAE to manage the daily operations of the company’s Embraer jet, according to AMEinfo.
Royal Jet’s President and CEO Shane O’Hare said:
“We are now able to offer guests the full range of aircraft capacity and prices right through from our Lear Jet 60 with 6 passengers to the largest fleet in the world of Boeing Business Jets. This enables our guests to manage their needs around the right capacity and price points for their requirements.”
by Matt on April 22, 2010
The Korea Times reports that South Korean President Lee Myung-bak will start using a leased Boeing 747-400 for overseas trips this month. The aircraft will be remodeled and Korean Air will provide the crew as well as other services.
