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.
It’s not just your imagination: Sales of pre-owned aircraft have climbed and inventory has shrunk.
JetNet reports that pre-owned business aircraft sale transactions between January and July increased 11.2 percent compared with the same seven-month period in 2010, and turboprop sales increased 3.7 percent. Pre-owned inventories continued to decline gradually in July, to 13.7 percent for business jets and 10.1 percent for business turboprops versus the same month last year, representing 1.2 percent and 0.8 percent drops in inventories, respectively.
This trend means that if you’re in the market for a pre-owned jet, you’ll spend more time looking for the aircraft you want — and finding fewer options. That is, unless you work with a jet broker.
Less pain, more plane
Using a jet broker takes the pain out of buying an aircraft. You don’t have to waste valuable time searching through private jet sales listings, inspecting and haggling over the jet: You simply let an expert do it for you.
Companies such as L&L International will take down your requirements, work with you to refine them to meet your budget and business needs, and procure the perfect lease or finance plan for the acquisition of the aircraft. Your involvement consists of making the final selection and signing the bill of sale.
You may not know exactly which type of private jet is most suitable for your needs, but a jet broker can help you understand your options.
Dedicated service for sellers and buyers
If you already have a personal or corporate jet, you may find that you need to upgrade to a jet that carries more passengers, is capable of longer flights or is more luxurious than your current aircraft. If you have a jet for sale and also want to buy a new model, a jet broker is a valuable asset.
You are likely too busy to put in the dedicated hours required to secure both the best price for your own jet and for the jet you want to purchase. It’s your jet broker’s job to work tirelessly on your behalf to secure the best deal. Brokers have good relationships developed throughout the world of buying and selling jets. Thus, they are in the best position to research not only the best aircraft on the market, but also the best off-market deals.
In today’s market, a jet broker’s insider knowledge saves you time and effort — and presents opportunities you don’t want to fly by.
Check out these great jets available from L and L International. Please contact us with any questions.
The Dubai Air Show, happening right now, Nov. 13–17, 2011, is always the place for all things aeronautical. This year’s exhibit has continued that tradition. Record numbers of jets have been ordered: On Day 3 of the show, orders already total $47 billion (USD) —three times more than the tally of the last show in 2009.
Qatar Airways and Emirates were the big spenders at this year’s air show; Emirates made a firm order for 50 of Boeing Co.’s 777-300ER aircraft. These two companies are funneling global travelers through the Middle East at an unprecedented rate. Combined, the two carriers ordered enough aircraft to seat 38,000 passengers.
And many of those global travelers can expect to travel through UAE in the coming years. Because of its location, travelers can take a long haul flight from the UAE either east to Asia or west to Europe. In Dubai, the Al Maktoum International Airport is due to be completed in the next decade. It will be the largest airport in the world, capable of handling 160 million passengers per year, compared to 70 million at London’s Heathrow Airport.
Take a look at the new business jets featured at the Dubai Air Show; 120 aircraft were on display. The next show will take place at Al Maktoum International Airport in 2013.
Whether the cabin of your current aircraft is looking shabby or you are purchasing a pre-owned aircraft, a practical move that adds value to your investment is an interior upgrade.
Now is an excellent time to upgrade your aircraft interior, with refurbishment shops and technology vendors aggressively competing for business. Such providers offer a range of services, work with a variety of materials, and have specialized expertise in working with aircraft interiors.
A worthwhile investment
Jet brokers agree that although makeovers may not generate a 100 percent return on investment, operators may conceivably expect a 60 to 80 percent return. Operators will have the pleasure of a new or improved interior and enjoy a better price when it’s time to sell.
Before you shop for estimates, it’s important to know the extent of the work you want done. Does the aircraft require only a touch-up or a full-cabin makeover? More or fewer seats? An office nook or in-flight entertainment upgrade?
A consultant can help you compare your wants and needs and clarify the extent of the work your aircraft requires.
Choose your provider wisely
The Internet makes it relatively easy to research a prospective consultant, but don’t rely only on the information you find on the company’s website. Be sure to call references. The consultant should ideally have at least 10 years’ experience to ensure they have been exposed to many different problems and situations linked to this sector of the industry.
An even better option is hiring an aviation completion management firm with staff members that have different levels of experience. Such a firm provides specialists such as a paint expert overseeing the painting of the aircraft or an experienced woodworker to build, finish and install cabinets.
Whether your upgrades include simple cosmetic improvements, an upgrade to technology or a full overhaul, choose your consultant as if you were hiring a full-time employee. Ask the same questions you would a potential staff member, and you won’t be disappointed.
