Graham Warwick/WASHINGTON DC
US corporate charter operators report an increase in demand during 1999, boosted by the country's economic growth and airline service issues.
The National Air Transportation Association says charter operations increased 20% last year. Executive Jet Management (EJM), the charter arm of fractional-ownership leader Executive Jet, ended 1999 with 50 aircraft in its charter management fleet, having added 20 during the year. EJM plans to add 25 more aircraft to its managed fleet this year.
The Cincinnati, Ohio-based company says corporate clients and wealthy individuals alike are increasingly chartering business jets to avoid the delays and inconvenience of airline travel.
A significant part of EJM's business comes from providing charter back-up to Executive Jet's NetJets fractional-ownership programme. Already this year, the company has added two Cessna Citation Excels to its fleet to support NetJets.
Dallas, Texas-based Alliance Executive, meanwhile, expects to increase its managed fleet by three aircraft a month this year. The company has 34 aircraft for charter.
Alliance was formerly part of Bombardier Business Jet Solutions, but was acquired by investors last year. Bombardier's FlexJet fractional-ownership venture is a minority partner in the company, and Alliance provides a small amount of charter back-up for the programme, says vice-president of operations Walter Ernst.
Competition in the US charter market is fierce, and third-placed Alliance "should be doing better, with the way the economy is", admits Ernst. "We have seen an increase in demand for charter," he says, "and we are seeing a different group of travellers.
"There are 150,000 people in the US with a personal wealth of more than $50 million," he adds. "They are learning they do not have to go to the airlines to meet their personal and business needs."
Source: Flight International
