KATE SARSFIELD / LONDON
Company to take four Executive types by year-end to expand large-cabin fleet as alternative to existing models.
Flight Options is set to become the first fractional ownership provider to operate the Embraer Legacy business jet when it takes delivery of four Executive models by the end of the year. The move is designed to expand the Cleveland, Ohio-based operator's large-cabin fleet, which is reaching full capacity, and to offer a more cost-efficient alternative to its existing models, including pre-owned Gulfstream IVs and Bombardier Challenger 601s.
"The decision to buy the Legacy also forms part of our strategy to refresh the business aircraft fleet and offer a broad portfolio of aircraft," says Flight Options chief executive John Nahill.
He says Flight Options will this year start to retire its older aircraft types, including the first of six Cessna Citation IIs, through a process of "natural migration", as contracts come up for renewal and new aircraft types become available.
Flight Options operates 224 aircraft, of which 18 are turboprops, on behalf of more than 2,000 shareowners. Nahill says there is increasing demand from customers to fly domestically in a large-cabin aircraft. "We needed to add large cabin capacity as our mid-size fleet cannot satisfy the demand," he says. The Legacy offers a broad range of missions and low operating costs, he says. The first four aircraft will be added to Flight Options' core fleet and customers will pay an interchange rate for use of the Legacy. As demand grows Flight Options will add new aircraft in which it will sell shares.
Flight Options, which was acquired by Raytheon this year, has yet to make a profit, but Nahill says the company will continue to grow its new-aircraft fleet at around 10% a year. The programme will continue to grow, he adds, as Flight Options responds to the demands of its diverse customer base. "We see a number of differing pricing models emerging," Nahill says, including block charter, leasing and multi-share programmes.
Source: Flight International
