A new fractional ownership and charter player has entered the European business aircraft arena in a bid to carve a significant share of the region's corporate and luxury air travel market and to challenge the supremacy of fractional giant and market leader NetJets Europe.
Jet Republic has acquired 110 Bombardier Learjet 60XRs - 25 orders and 85 options valued at $1.5 billion - which it claims to be the largest single business jet order in European aircraft history. The company is also considering adding new aircraft types to its fleet later date.
The venture will kick start on the 29 September, says Jet Republic chief executive Jonathan Breeze. "The Jet card will be offered from launch at a price of €130,000 ($190,000) for 25 hours of flying time," The company has secured agreements with 30 business aircraft operators throughout Europe - including ExecuJet and Tag Aviation - to provide charter for its Jet Card customers.
The fractional ownership operation will start in around 12 months following delivery of the first midsize aircraft. "We will begin selling shares on the 29th, but our customers won't be able to get their hands on a customised aircraft until next year," says Breeze. The first 25 Learjet 60XRs will be delivered at a rate of one every four weeks. If the options are exercised, one 60XR will be handed over every three weeks with all aircraft in service in 2013, says Breeze.
Shares in the $14 million Learjet 60XR will start at one-sixteenth, providing 50 flight hours a year, extending up to a half share with 400h. Owners will also pay a monthly management fee of €2,000 and an occupied hourly rate of €3,500.
Jet Republic denies the venture's launch is ill-timed given the state of the volatile financial market. "This is a great time to launch a private jet company," says Breeze. "We put the package together in July we were actually turning investors away," says Jet Republic chief executive Jonathan Breeze.
Jet Republic is being bank-rolled private Austrian bank European American whose chief executive is Viktor Popovic is Jet Republic president. Former senior NetJets Europe executives have also joined Jet Republic's management team.
Breeze says the company will trump rival operators including NetJets by offering better service and perks such as "in-flight service attendants wireless connectivity in-flight, such as BlackBerry and proper espresso coffee", says Breeze, adding: "We will represent the Apple iPod of the private jet industry and NetJets the Sony Walkman," says Breeze.
Mirroring NetJets Europe, Jet Republic has established its base in Portugal due to the country's favourable tax structure and its low cost and high skill base. Jet Republic is targeting the 3 million high-net worth individuals across Europe - those with an annual income of around €2 million a year and €10 million of investment. "Through our research we have found that 30% of Europe's high-net worth individuals are based in the UK and Ireland, 20% in eastern Europe and Russia, while France, Germany and Spain have around 10% each," says Breeze.
Source: Flight International
