ACC AVIATION
AIR PARTNER
HE PHRASE “PRIVATE JET” evokes an image of über-luxury, VIP treatment and copious amounts of
bubbly that is rather at odds with this current climate of austerity measures. However, that picture is far from accurate, according to business aviation operators, who point out that corporate use of jet charter is more about time-saving considerations than buying into a glamorous lifestyle. “The cost of a senior executive’s time away from the office will often be prohibitive. So if private jet travel is arranged in the most cost-conscious way, it can be a justifiable expense,” explains the CEO of PrivateFly, Adam Twidell. Emma Wilkinson, Director of The Charter
Company, says it depends on the circumstances. “Using a 19-seat VIPAirbus to fly one board member to a meeting in Geneva may not be the most cost- effective choice. Using a small private jet to transport seven people to the same meeting, however, may be comparable to business class fares and will offer the maximum amount of flexibility should you need to make any changes to the itinerary.”
WEIGHING UP THE BENEFITS Glenn Hogben, Charter Manager at ACC
Aviation, highlights the fact that private jets can provide a higher level of security than regular airlines, adding that “being able to have maximum flexibility when conducting overseas business… can be vital in achieving the purpose of your trip.” Clive Jackson, CEO and Founder of Victor,
points out that private jets also offer more flexibility, “meaning no lengthy delays at a connecting airport waiting for the next scheduled departure. The private jet can take executives straight to their destination – it’s a
FREEDOM
PRIVATE JETS OFFER
door-to-door service.” At Air Partner, Simon Wheatley, UK Manager for Private Jets, makes a bold statement that will surely give PAs making company travel arrangements pause for thought. “In today’s competitive environment, who can afford not to consider the benefits of private jets?” he asks. “There is no other transport solution yet conceived that can match the private jet’s capacity to magnify the productivity and influence of your most precious asset: people. If you are to pay people good money for their time, the private jet can ensure that every minute of that time is used effectively. [Your executives] can plan their day around their work instead of planning their work around an airline’s routes and schedules.” So what are the prevailing trends within the sector that canny PAs need to be aware of? “People are looking for complete transparency – a service the end user can trust entirely that guarantees peace of mind and saves them time,” according to Victor founder Jackson. Transparency is a topic also
picked up on by PrivateFly’s Twidell,
who identifies the key themes in private aviation for 2013 as “more efficiency, more transparency, more competition… [and] innovation”. He goes on to say: “The industry is emerging from the recession and undergoing significant change – becoming more efficient and catching up with other travel sectors in terms of its use of technology. Competition in the market is driving more cost-effectiveness too, so it’s all good news for the end user.” Air Partner’s Wheatley, meanwhile, refers to
research conducted by financial services firm JP Morgan that predicts an eight per cent growth in business jet delivery for this year. Wheatley sees this as being based on an increase in the number of corporate clients
who opt for charter solutions “as an alternative to less flexible private aviation options”. ACC Aviation’s Hogben pinpoints the fastest-growing area of the market as being “long-distance travel, where corporations are investing in [developing] overseas markets”. At The Charter Company, Wilkinson comments that the current state of the market should prove advantageous to end users as, with aircraft availability relatively high at present, it will enable them to “obtain a larger selection of potential aircraft at competitive rates.” The introduction of new aircraft to the market is also a positive factor, notes Wilkinson, elaborating that it “ensures cabin interiors are fresh and new, airframe hours are low and cost-efficient engines mean charter rates can be more competitive.”
COUNTING THE COST When it comes to choosing private
aviation, one of the biggest decisions that PAs and other travel buyers are faced with is whether to opt for fractional ownership of a private jet or go down the chartering route. Opinion is divided as to the various merits of each option. “When it was launched in the 1980s, fractional ownership was seen as a way of sharing the perks of a jet – including instant availability, ease of booking and consistent service – without the drawbacks of directly managing the aircraft’s maintenance and crew. A sixteenth share would typically give you 50 hours of flying time a year,” explains PrivateFly’s Twidell. More recently, there has been a sea change
in how companies tend to view the concept. As Twidell points out: “Fewer companies are happy to make the upfront commitment required by fractional ownership. In the current economic climate, the amount of flying time required could change, plus there
PALIFE.CO.UK
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MARCH 2013 • PALife
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