Operator aims to counter growth of fractional ownership and block charter schemes

UK business aircraft operator London Executive Aviation (LEA) is planning a tie-up with companies in Western Europe to combat the rise of fractional ownership and block charter schemes as it expands its bases in London.

LEA has added facilities at London’s Farnborough business aviation airport, taking its bases around the UK capital to six, and is adding a Cessna Citation Excel super-light jet to its managed fleet, taking its Citation fleet to 11.

It is now the UK’s largest business aircraft charter operator and has tentative plans to form an umbrella group with other European operators. The idea is to create a network to counter the geographical reach of fractional operators such as NetJets Europe and block charter schemes such as Bombardier’s FlexJet Europe.

LEA recorded growth in turnover of 18% for the financial year ending March and has seen a 25% increase in business in the first four months of the current financial year, says chief executive Patrick Margetson-Rushmore. Over half of the traffic growth is due to leisure charters for customers such as wealthy families, he says. “The key location is the south of France, with families using a private aircraft to fly from their home airport to their holiday homes.”

Previously, aircraft owners flew leisure missions, but private charter was limited to occasional skiing groups, whereas word-of-mouth has driven a new demand from holidaymakers, he adds.

LEA says it has seen an upswing in direct bookings, with charter brokers’ involvement being reduced to around 50% of all bookings last year, compared with 90% in 2000. “Greater awareness in the UK of the potential of business aviation in the press and referrals has led to direct enquiries,” says Margetson-Rushmore.

He feels the stigma once attached to corporations using business aircraft is beginning to recede. “There were investment banks that would routinely use private aircraft in the USA, but would not do so here for risk of putting their heads above the parapet,” he says.

JUSTIN WASTNAGE/LONDON

Source: Flight International