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Old 06-04-2012, 07:41 AM
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Default Headed away from fractionals, then where to?

Seems some people think the future of the fractional business is in question. For those who feel that model is failing, where do you suggest clients go? So, 2012-2015, if you are looking to do a lot of spontaneous flying across the US and Europe, what is your best value option going forward?

-Charter as needed
-Buy a mid sized jet and start yet another charter yourself or somehow make your aircraft available to a charter so it can attempt to pay for itself while it sits .
-What is that company, green jets or something(share seats) ? What about them?

Is there another "Value" model I'm unaware off?

Thanks in advance!

Last edited by f16falcon; 06-04-2012 at 07:50 AM. Reason: clarification
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Old 06-04-2012, 09:03 AM
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Are people really skeptical about the future of charter?

My opinion based on my own research is that I think the future of air travel, whether it be commercial or corporate, is in charter style travel or some sort of spin off thereof.

It's a great business model that, if you can market correctly, can cater to a bigger demographic than just the "rich and famous."

I recently posted about a new charter style airline based out of CA. SurfAir is their name. I am quite curious to see how things end up for them (hopefully they do well) but it is perfect example of a charter style operation, with a twist.

Surf Air ? All You Can Fly Membership Airline
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Old 06-04-2012, 09:14 AM
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Originally Posted by f16falcon
Is there another "Value" model I'm unaware off?
IMO, there's no such thing as a "value" model in business aviation.

It all depends on how an aircraft is utilized - how often, how much, by whom, which destinations, round trip vs. one-way, what payload, etc. - as to which option (whole ownership, fractional, charter, owned but managed, etc) meets the transportation needs for the lowest capital outflow.
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Old 06-06-2012, 05:12 AM
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No, I think charters might be the way to go, it's the fractional ownerships that I'm not sure about. Sound great in theory but a lot of negative talk floating around.

I'm curious how the "shared seats" model is going to play out. Not sure about the details but it appears that you share a flight with a few people. Kinda like First Class+ without the crying babies...hopefully. No lines of course.

Originally Posted by mtbthis
Are people really skeptical about the future of charter?

My opinion based on my own research is that I think the future of air travel, whether it be commercial or corporate, is in charter style travel or some sort of spin off thereof.

It's a great business model that, if you can market correctly, can cater to a bigger demographic than just the "rich and famous."

I recently posted about a new charter style airline based out of CA. SurfAir is their name. I am quite curious to see how things end up for them (hopefully they do well) but it is perfect example of a charter style operation, with a twist.

Surf Air ? All You Can Fly Membership Airline
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Old 06-06-2012, 05:16 AM
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Originally Posted by BoilerUP
IMO, there's no such thing as a "value" model in business aviation.

It all depends on how an aircraft is utilized - how often, how much, by whom, which destinations, round trip vs. one-way, what payload, etc. - as to which option (whole ownership, fractional, charter, owned but managed, etc) meets the transportation needs for the lowest capital outflow.
There may not be a "value" option, but I'm sure you can cut costs anywhere from $50,000 to $100,000 or maybe even more, depending on how you play it. A little like a chess game to me. You have a lot of pieces that you need to place with great skill to have the desired outcome. Like you said, the amount of flying you do, the distance, payload and fuel and many other factors need to be balance in a model that best suits you. There may not be a cheap options, but there must certainly be a cheaPER version that does the job.
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Old 06-06-2012, 08:30 AM
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Millionaire households in the United States decreased by 129,000 in 2011, according to a new study from the Boston Consulting Group. Globally, that figure grew by 175,000. The report defines these households as having over $1 million in cash, stock and other assets, excluding property, businesses and luxury goods.

Explains why Netjets had a layoff of 400 pilots.

Perhaps the Part 135 market with Beechcraft Barons will get busy again.
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Old 06-06-2012, 11:51 AM
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Originally Posted by f16falcon
I'm curious how the "shared seats" model is going to play out. Not sure about the details but it appears that you share a flight with a few people. Kinda like First Class+ without the crying babies...hopefully. No lines of course.
Jammed packed into a PC12 with all the seats full doesn't exactly sound like First Class+ to me. This option may be viable in limited markets where no other service is available, but this sounds much more like a scheduled pt 121 than Private Jet Charter. But hey, if you just need to bring a briefcase on a day trip, it may be better than driving yourself. I'm very curious to see where the price point for this service falls.

Shared private aviation is an oxymoron. Time will tell if there is a market for scheduled flights in small airplanes to and from more convenient airports. I won't be rushing to invest my own money anytime soon though. Lots of overhead, razor thin margins, and an unknown market place. I do wish them the best of luck though.
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Old 06-06-2012, 12:35 PM
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I fly for a small charter company with 4 jets and 2 king airs. Over the last year I have been flying more and more former fractional owners. They all seem to like the fact of the pay as you go route and not being tied down to aircraft ownership anymore. They usually had nice things to say about the fractionals but as with everything else it came down to cost.
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