| Many of us in the charter world are often | | | | price levels. Charter revenues barely cover |
| delighted to read or hear that business | | | | the aircraft management and operational |
| travelers and affluent individuals are | | | | costs, and almost never reach levels |
| becoming disenchanted with commercial | | | | necessary to cover an aircraft's cost of |
| flights, crowded airports, flight delays, and | | | | ownership. At the same time in the charter |
| inconvenient schedules. But the truth of the | | | | world an aircraft flies empty 40% to 60% of |
| matter is that if we were to bring less than | | | | the time. Passengers are paying for |
| 1% of those passengers into the private jet | | | | "repositioning" flight time, and for the |
| charter arena, our current processes would | | | | aircraft returning to its base empty after |
| fail on all levels. | | | | having been dropped off at their destination. |
| | | | In summary, the passengers are paying more |
| Let's face it. It takes at least half a | | | | than they should and the investors are |
| dozen phone calls, faxes, or emails, before | | | | loosing money. How long do you believe this |
| you can get a charter estimate - which may or | | | | situation will continue? |
| may not be correct. Then if you have the | | | | |
| pluck to go for it, you still need the | | | | A number of aircraft management companies are |
| aircraft "owner approval". Without "owner | | | | addressing this problem through mergers and |
| approval", which may take from 2 hours to a | | | | acquisitions, hoping that with a larger fleet |
| week to reach you, you're back to the drawing | | | | and a larger network they might be able to |
| board again calling operators, leaving | | | | reduce the number of empty flights. |
| messages, faxing… ah! the faxing. All | | | | Agreements with owners are being changed and |
| this, folks, and you have not boarded the | | | | new agreements are designed to favor charter |
| plane yet. | | | | over owner use of the private jet. But the |
| | | | Holy Grail of charter industry is still in |
| Increased aircraft utilization presents many | | | | its infancy: distribution. Distribution means |
| challenges as well. If we are to add a tiny | | | | that passengers are given the ability to shop |
| fraction of unhappy airline passengers to the | | | | and book private jets with the same ease and |
| private jet charter circuit, we will have to | | | | access they have when shopping and booking |
| fly the airplanes upwards of 1,200 to 1,500 | | | | other air-transportation solution. Today this |
| hours a year. Has anyone done that before? | | | | kind of access is offered only on and |
| Rarely if ever. First, it is unclear whether | | | | affiliate web sites. |
| the aircraft currently flying can withstand | | | | |
| this level of utilization. Second, aircraft | | | | delivers consumers everything they need for |
| owners traditionally fly less than 400 hours | | | | researching, planning, and purchasing private |
| a year and they seldom hire more than one | | | | jet charters. The company is providing direct |
| pilot and one co-pilot, and maybe, if the | | | | access to a broad world-wide selection of |
| aircraft management company really insists | | | | private air-transportation solutions |
| and promises miraculous charter revenues, a | | | | including private jets, turboprops, and even |
| third pilot is recruited. | | | | reciprocating-engine aircraft. The site |
| | | | offers a side-by-side comparison of every |
| So the question begs itself: How will an | | | | aircraft available on the selected route. |
| operation whose processes are designed to | | | | Passengers can evaluate the differences in |
| accommodate this low - very low - aircraft | | | | cabin height, luggage capacity, number of |
| utilization, stretch itself to fulfill 1200 | | | | seats, presence of lavatory facilities on |
| to 1,500 hours of flight time? What will | | | | board, flight times, and prices. Unlike other |
| happen to its operational safety controls, | | | | websites that offer only estimates. This is |
| its maintenance standards, its customer | | | | the only web site where you can actually |
| service levels? Well, let's focus on service | | | | process the entire booking on-line. It is |
| levels today in periods of peak demand where | | | | designed to emulate a standard travel |
| a passenger will pay $30,000 for a five hour | | | | website. It is identical to booking an |
| flight on a mid-size jet with a toilet that | | | | airline seat, except that in this case you're |
| doesn't flush, a bathroom door that doesn't | | | | booking the aircraft. |
| close, and a heating system that is | | | | |
| malfunctioning - this happened to me. Do you | | | | The pressures exerted by the sustained high |
| imagine yourself in below freezing | | | | demand from business travelers and affluent |
| temperatures at 41,000 feet without climate | | | | individuals today must result in a |
| control or lavatory facilities? Then top it | | | | fundamental change in how the private jet |
| all off with a credit card bill of $30,000? | | | | charter industry is handling this boon. The |
| This is not the sign of a careless aircraft | | | | industry has received an unprecedented |
| operator, rather the sign of an operator who | | | | invitation from the marketplace to gear up |
| lacks the quality control processes that are | | | | its production methods and processes for a |
| adequate to support high production volumes. | | | | future where private air-transportation will |
| | | | be accessible to a far greater number of |
| The source of the problem is that current | | | | passengers. These passengers are already |
| pricing mechanisms do not warrant investment | | | | learning to think of private jet charter as a |
| in an aircraft for the purpose of charter. | | | | serious alternative to airline products. Are |
| Aircraft owners are subsidizing the current | | | | we ready? |