Flight Options is culling its ageing business aircraft fleet in an effort to create "a robust business model" and efficiency of scale for its growing customer base.
Michael Scheeringa, chief operating officer and acting chief executive of the world's second largest fractional operator, says that after the merger two years ago of Flight Options and Raytheon Travel Air the company controlled a fleet of around 200 business aircraft in 11 types. "Although we had a critical mass, the diversity of the fleet didn't allow for a consistent product offering," he says. "By streamlining our fleet we can offer a leaner and more efficient programme covering everything from our parts inventory to crew training".
The Flight Options fleet has already been slashed to four types, 90 Beechcraft 400A/XPs, 51 Hawker 800A/XPs, six Cessna Citation Xs and eight Embraer Legacys. "We plan to phase out the 400As and 800As and replace them with the latest XP variants, for which we are exercising our orders and options," says Scheeringa. The Citation II programme will be phased out by the end of the month and a King Air programme in the third quarter of next year, he says. Other programmes under the axe include the Bombardier Challenger, Citation III, Dassault Falcon 50, and Gulfstream IV. Flight Options is committed to honouring the contracts of these owners, although Scheeringa admits incentives are being offered to persuade the owners to trade in early.
The introduction of the Legacy last year as a replacement for the large-cabin Challenger and GIV programmes has been successful, Scheeringa says, and the company plans to add four aircraft a year, depending on demand.
"Although the Legacy doesn't have the long range of the Challenger and GIV, we found that around 95% of the missions were well within the range of the Legacy," Scheeringa says. Flight Options recently introduced a variable pricing structure giving Legacy owners a 20% discount per flight hour on journeys over 3h. "A first for the industry," he says.
Scheeringa has not ruled out introducing a large-cabin, long-range aircraft and says he may consider the super mid-size Hawker Horizon to replace the Falcon 50.
KATE SARSFIELD LONDON
Source: Flight International
