In 2011, owners and operators of private aircraft participated in many charitable activities and organizations. Find some inspiration for 2012 from these accounts of philanthropy.
In Chandler, Ariz., John and Diana Walkup of Chandler Air Service hosted their 20th Annual Toys for Tots Hangar Party. At the Dec. 9 party, more than 1,500 toys were collected to distribute among local families in need.
Chris Boes relies on Wings of Mercy for free flights to see his doctor. For the past two years, Boes has traveled by air from his home in Muskegon, Mich., to the Duke University Medical Center in Durham, N.C. Boes and his family are grateful for the volunteer pilots who fly them to the cancer facility every two to four months so that Boes can receive his life-saving treatments as he battles an aggressive brain tumor.
In April 2011, Corporate Jet Insider featured an article about the long-term philanthropic activities of two organizations, Wings of Hope and Aerobridge. Both of these groups provide transportation so that medical and emergency professionals can respond to global emergencies like the devastating hurricane in Haiti in 2010.
The number of Americans with private pilot licenses has been dwindling for the last several years, and in 2010, the number dropped to 1966 levels. In order to inspire interest in flying, volunteer pilots like Butch Bejna fly children aged 8 to 17 for free. Bejna has flown more than 1,700 children over the past 15 years; 10 of them have become pilots.
When it’s time to sell your aircraft, reaching out to and working with several agents means more promotional opportunities for your jet, which results in more prospects, and a faster sale — right?
Not necessarily. Although it may seem counterintuitive, listing your aircraft with multiple brokers doesn’t speed up the sales cycle, and in fact, there are potential risks involved in doing so.
Why less is more
The best brokers in the industry have the most experience and the most valuable contacts. They also rarely participate in multi-broker listings. It just doesn’t make sense to invest time and energy into a sale without the guarantee of a commission.
When you enter into an exclusive arrangement with a single, well-established broker, the agent then becomes committed to the sales process and will devote the marketing resources needed to ensure the aircraft finds a buyer quickly. A good agent has a reputation to maintain and relies heavily on repeat business and positive word-of-mouth in the close-knit aviation community.
Controlling the flow of information
Working with multiple brokers can also create overexposure for the aircraft, possibly diluting its perceived value in the market. In addition, when multiple brokers become involved in the sale of the aircraft, the information and details about the plane can become distorted or just plain inaccurate, creating uncertainty and confusion in the minds of interested buyers.
An individual broker will provide consistently reliable information to potential buyers, reducing the possibility for unanticipated concerns or objections that may rise late in the sales process.
An experienced broker also has well-grounded knowledge of current selling conditions, including product demand, available inventory and price fluctuations. This expertise translates into a deep understanding of the overall value of your aircraft that can be communicated to the market.
Seller beware
Because there are no industry regulations or licensing requirements for the sellers of aircraft, virtually anyone can establish himself as an agent. Because of this, it’s extremely important to review the broker’s website and ask for specifics about how the sale of your aircraft will be handled. Be sure to also request references and speak directly with the firm’s previous clients.
The right broker will have an established client base, a global marketing reach, and the experience necessary to ensure the sale of your pre-owned aircraft goes as quickly and smoothly as possible.
There are always news stories and new technologies in the aviation industry. Corporate Jet Insider scoured the headlines to bring you this rundown of some of the more important and interesting stories of the week.
FAA releases new pilot rules to combat fatigue
For the National Transportation Safety Board, new pilot safety rules have been a long time coming. They hadn’t been updated since the 1960s and didn’t conform to new science about the effects of crossing time zones on pilot fatigue. In addition to improving the health of pilots, the new rules aim to increase the level of safety for passengers.
Take a private jet around the world
Looking for a last-minute gift for that person who has everything? Consider a National Geographic expedition. The 23-day tour by private jet, a Boeing 757-200, provides glimpses of eight world heritage sites.
Get a seat on a private aircraft
If you want to see if private air travel is for you, this is a risk-free way to check it out. Starting in January, SocialFlights.com will start full operations. The Smyrna, Tenn.-based company matches travelers to vacant seats on chartered flights. Fly in style on private aircraft and avoid the hassles of commercial air travel.
There’s an app for that.
Even for fear of flying. If you have an iPhone and anxiety in the air, you will appreciate the “Flying Without Fear” app by Mental Workout, Inc.
World’s largest aircraft
Aerospace designer Burt Rutan is teaming up with Microsoft co-founder Paul Allen to design the world’s largest aircraft for Allen’s company, Stratolaunch Systems. According to the Wall Street Journal, the project will cost $200 million. The first flight of the 1.2 million-pound aircraft is anticipated within five years.
Private Jet MD
For those people who seem to spend more time in the air than on the ground, health concerns can become problematic. An annual membership provides emergency medical assistance anywhere in the world through a network of prescreened medical facilities.
The year-end holidays are often a busy and hectic time. Whereas many people have the luxury of taking vacation or simply cutting back on work hours at the end of the year, most executives must continue to see to the demands of running their businesses while trying to carve out precious hours for family and friends.
Add to this mix the pressures of commuting by air during one of the busiest times of the year, and you’ve got a recipe for a holiday season that feels anything but peaceful or festive.
Security! Bah!
For travelers within easy driving distance of a major airport, private air travel eliminates the most common headaches at large airports during the holidays. They no longer have to suffer through long security lines and cancelled, delayed or overbooked flights.
For those who face a lengthy commute by car or shuttle to or from a major hub, private air travel supplies the alternative option of flying from a nearby regional airport which can recover several hours per trip. And, in most cases, private plane passengers need only be at the terminal 15 minutes before the flight’s scheduled departure.
Lifestyles of the relaxed and productive
Private business aviation is not about lavish private planes that cater to rock stars, professional athletes and other celebrities. Traveling by corporate jet is infinitely more practical, with simple luxuries like working without interruption from a fully equipped, portable office.
Securing a private jet also provides control and flexibility around the flight’s departure times. Do you need to book a last-minute flight during the holidays? Instead of being forced to choose among limited seats on commercial flights (and paying a steep last-minute fare), you can book a private flight that works around your schedule. Did your late-day meeting run longer than expected? No problem — your private aircraft doesn’t leave until you arrive at the terminal.
Best of all, by eliminating the wasted hours and stress that comes with traditional airline travel, private planes can deliver you safely on the ground with more energy to devote to the people you care about most. And isn’t that something we can all put on our wish list this holiday season?
The slow and bumpy market recovery for business aircraft is expected to continue into the next decade, according to a report from Forecast International, a Connecticut market research firm. Sputtering U.S. and European economies have forced demand for business jets lower than the rising demand for private aircraft in the Middle East, Brazil, Russia, India and China.
Here are some highlights from Forecast International’s study.
- The most substantial build growth rates won’t be seen until 2013.
- Long-range, large-cabin jets see the most demand.
- Between 2011 and 2020, 10,907 jets will be produced, worth an estimated $230.3 billion
Several new designs are in the works, and industry analysts expect them to both enjoy high sales in the improving economy and to stimulate the aircraft industry. Click the links below to see pictures of the exciting new designs.
Speaking of Bombardier and the improving bizjet market, the Canadian aircraft company reported its 2011 third quarter earnings on Dec. 1, 2011. The news is generally good, with Bombardier posting revenues of $2.3 billion in the third quarter, up from $1.8 billion from the same period last year.
While the business jet market certainly isn’t skyrocketing or experiencing the levels of 2008, the increase in orders and demand seen recently demonstrates a sustainable pattern of growth that those in the business jet industry should be excited about. Happy New Year!
If the need for a private jet in the day-to-day operations of your business is obvious, the next step is determining whether you should buy one outright or invest in fractional ownership.
Your course of action ought to depend upon how frequently you would use the aircraft, your corporate budget and the available aircraft.
Full jet ownership
Many think that full jet ownership is the only possibility when it comes to using and depending on private air travel. Obviously, if you or your company has full jet ownership, then it is yours, much like a car or house. Full responsibility for all aspects of the jet is yours, but you also enjoy having a private jet at your disposal anytime.
Fractional jet ownership
A condominium time-share agreement is fairly similar to fractional jet ownership. With this system, an individual or company pays a set amount and is then guaranteed a certain number of hours of use over a year or five years. In order to use the jet, fractional owners must confer with the other owners to be sure it is available.
Unlike owning a jet, having access to a private plane through fractional ownership doesn’t mean you can go anywhere in the world; not all programs offer international service beyond the Caribbean and Mexico. And if they do, some programs are so cost prohibitive that travelers often opt to fly overseas commercially in first class and then work with a charter if they want to fly to their final destinations.
Despite these limitations, the National Business Aviation Association reports that nation’s fractional aircraft market has made a turn toward what appears to be a period of sustained growth.
Several factors contribute to the increased interest in fractional ownership:
- Commercial airlines are offering fewer flights to smaller markets.
- Businesspeople consider the time savings of a private jet a great value.
- Companies that offer fractional ownership are sweetening the deal with perks like rollover hours.
- Creative membership programs increase availability to new parties.
Professional guide
A jet broker can walk you through the advantages and disadvantages of full or partial ownership of a private jet. Experienced private jet brokers can provide you with information regarding all of your options, as well as provide information about available aircraft, specifications and maintenance costs to help you make the best decision for your lifestyle or company.
Average jet prices are down and planes are on the market for shorter periods, so it may be a difficult time to find the right plane and the best price. A broker is in constant contact with the market and will be able to get the deal you need.
It’s always fun to think about the innovations and advances that will happen in the aviation industry. Especially in the design of corporate jets.
In November, Jeff Burger wrote a compelling commentary that practically begs for a reinvention of the corporate jet. He was opining about how the creativity and vision of the late Steve Jobs at Apple could do wonders for the jet industry. Instead of asking frequent travelers and industry insiders what they want, perhaps airplane designers should be proactive and show business travelers what they have been missing.
So much is made about the incredibly luxurious, world-class flying castles. Transparent floors, in-flight concerts, spiral staircases and fern-lined walls are simply not typical (or feasible) for the vast majority of private and corporate aircraft.
Instead of concentrating on over-the-top interiors that only a handful of billionaires will enjoy, remember how the simple things are often better. Steve Jobs planned his airplane to the most minute detail — famously replacing separate open and close buttons with a single toggle switch. It’s that attention to detail on the typical corporate jets that will be truly innovative.
Once grounded by a skydiving economy, private jet travel is slowly but surely returning to its rightful place in the world of business.
Commercial airlines: More expensive, less convenient
Major airlines are raising airfares and reducing routes, and travelers are encountering ever longer security lines and more delayed flights. These factors, combined with the savings, convenience and efficiency private jets offer, have fostered the first increase in private flight demand since 2008.
Creative marketing
And it’s not only the wealthy and top executives hopping aboard private jets. Some private jet firms are lowering prices to lure in less-affluent consumers through flight-sharing arrangements and social networking campaigns that offer last-minute deals.
With these incentives and options like lower-cost charter flights and fractional ownership, flying via private jet is not just for the Fortune 500 anymore, but also for a typical business traveler.
The trend is global; European jet businesses are also noticing a shift in clientele. Nearly 50 percent of passengers on private jets are middle management, engineers, accountants and sales personnel.
Private flights give competitive edge
The current global business environment — which requires immediate responsiveness and flexibility — has changed the way business people travel. Private aviation is no longer a luxury but a necessity for business survival in a competitive marketplace.
Aviation experts predict that the demand for private air travel will continue to grow as corporate earnings improve. And corporations will have some competition as they consider private jet purchases. Brazil, Russia, India and China are producing new millionaires and billionaires at an ever-increasing pace, generating a pool of private jet buyers larger than the available supply.
This trend is expected to accelerate over the next decade, making it essential that those considering purchasing a private jet do so before the limited supply grounds them. A professional jet broker can help you take advantage of the current market conditions.
November has been an important month in business aviation. Growing markets in the BRIC countries (Brazil, Russia, India and China) as well as changes to U.S. appropriations affect the industry significantly. Also, the private jet community pays homage to an incredible leader, Teddy Forstmann.
New Association to Support Growth in Chinese Private Aircraft Market
The National Chinese Business Aviation Association (NCBAA) launched its website Nov. 28, 2011. China is a fast-growing market for private aircraft, and the newly formed NCBAA plans to offer a powerful association to support the burgeoning growth. The two main objectives of NCBAA are to provide an informational platform for all players in the industry and to promote the growth of business aviation in China.
Former CEO of Gulfstream, Teddy Forstmann, Died Nov. 20, 2011
Teddy Forstmann was known for many things, especially his incredible philanthropy and love of sports. To the aviation world, Forstmann will be remembered for his leadership of Gulfstream from 1990-1999. During his tenure, research and development were well funded, and Gulfstream became a great innovator of aircraft.
Congress Adjusts the BARR
Since the August changes to the Block Aircraft Registration Request (BARR) program, the National Business Aviation Association (NBAA) has worked diligently to reverse course. From 2000 until Aug. 2, 2011, BARR protected the privacy of aircraft’s flight plans, until the August change required operators to prove a security concern in order to be blocked from public, online tracking databases. However, Nov. 22, 2011, saw the passage of an appropriations bill in Congress that keeps the FAA from continuing with its changes to the BARR program that were initiated three months ago.
