US business aircraft management and charter company Northern Jet Management has launched a fractional-ownership programme aimed primarily at the business community. Called The Company Jet, the scheme is an extension of Northern Jet's existing fractional programme, North Shares, which operates Dassault Falcon 10s and Cessna Citation 1s for 15 customers.
Northern Jet president Chuck Cox says: "We decided to expand our market and offer [with the Citation Bravo] a modern business jet fleet. The first aircraft entered service last month, the second arrives next month and the third in February."
The Grand Rapids, Michigan-based company will continue to operate North Shares, but Cox hopes the share owners will gravitate to The Company Jet when their contracts expire.
The new programme, which so far has four owners, is targeted at small to mid-size companies within a 240km (150 mile) radius of Grand Rapids. Cox adds: "The cost of major fractional programmes such as [Cessna/TAG Aviation] Citation Shares often precludes mid-size companies [annual turnover of between $10 million and $500 million and employing between 100 and 1,000 people] as the customer pays for the empty legs."
The Company Jet requires its customers to return the aircraft to the base airport and by doing so, Cox says, the cost of operation has been cut. He adds: "The hourly rate is $590 compared with $1,175 for [fellow Bravo operator] CitationShares. Monthly management fees cost $7,450, compared with CitationShares' $7,950."
Acquisition costs of around $718,000 for the basic 100h programme are equivalent to a one-eighth share in a typical fractional programme, says Cox, but with a three-year, not a five-year, contract.
Source: Flight International
