Private jet travel may be one of the ultimate luxuries, but it may also be the key ingredient for companies with productivity high on the agenda.
People would not normally be able to make regular use of this type of travel unless they had jet money – personal net worth of about $50 million. And that’s just the entry level.
It’s worth it if you can afford it, though. The benefits are many: never having to handle your luggage; limo service from door to door; two pilots and full-service air stewards; and a stored personal profile that ensures all your in-flight needs are met, right down to having the Taittinger Champagne chilled and on ice when you board.
There’s also the convenience of skipping the whole security routine and not having to arrive for your flight until five minutes before you’re due to take off. And the plane will never, ever leave without you.
That’s what it’s like on NetJets at any rate, the company that pioneered fractional jet ownership in the United States and Europe. Fractional ownership gives individuals or businesses the benefits of whole-aircraft ownership at a fraction of the cost and without any of the responsibilities. You’re buying a percentage of time in the sky, if that makes sense, of a plane’s fly-able hours each year. But the upkeep, preparation and maintenance are dealt with by the operator, not you.
The jets I’ve flown with that company – mainly Cessna Citation Xs and Gulfstream GIVs – even have gold-plated seatbelt buckles.
While that’s all very nice, the main benefit of flying privately offers corporations and their time-poor executives the convenience of being able to “hub bust” – get to places commercial airlines may not readily access (if at all ) at a moment’s notice without the need for long layovers and multiple connections. Other incidentals like the need for overnight stays and associated expenses simply go away.
Fractional jet ownership of the NetJets ilk, however, has never taken off in Australia because we don’t have the infrastructure or the market to support it. Runways tend to be too short in rural areas, and most of our main business destinations are well served by commercial airlines.
The offering from a fractional operator, therefore, would need to be particularly good to justify the spend. This is especially so given the uncertainty in financial markets and the negative flow-through effects it is having on companies.
Shareholders, also, increasingly frown on executive behaviour that could be perceived as extravagant.
Regardless, three different companies have chosen this time to launch themselves into the private aviation market. Their view is they will use the next six to 12 months to educate the market about their offerings so they’ll be well positioned to capitalise on better times when they arrive. The good news is you don’t need jet money to fly with any of them. Their offerings all differ and are designed to appeal to different parts of the business market.
But interestingly, they all have a common pitch, and it’s all about productivity gain. Perhaps that’s not surprising when you consider what a hot topic that is at the moment. The combined impact of the high Australian dollar and greater international competition has made productivity improvement a priority across most industries. Still, it remains a challenge. The Reserve Bank of Australia has suggested worker mobility will be a crucial part in facilitating much-needed improvements in future.
Business aviation offers enormous scope in helping bring that about, says the managing director of The Jet Network, Adam Bond. But Australian attitudes and conservatism towards jets need to change first.
“What we’re up against here is … the long-standing perception in Australia that jets are an unnecessary extravagance,” Bond says. “What they really are is a productivity tool that allows companies to leverage their key employees and increase transaction speeds and their response to the market.”
Of the three new offerings, Avia Aviation is hoping to attract small and medium businesses to its fractional-ownership model. It only offers single-engine or prop planes, which aren’t recognised as the safest way to get around.
I have to say I was somewhat nervous about going up in a Cirrus SR22 the other week when Avia invited me to test-fly its aircraft.
But pilot and Avia founder George Gunter told me to relax because the plane (which friends later described as a “bug smasher” and “crop duster”) had a parachute. If things “went wrong”, a massive rocket would punch through the fuselage and launch a chute – 30 metres in diameter – into the sky. It would destroy the plane, Gunter said, but provide for a softer landing. Oh good! I felt much better climbing on board.
Avia is aiming for a fleet of five to 10 aircraft from its Moorabin fixed-base operation. Ownership will be offered in quarter- to one-eighth shares in the planes, with a quarter share of the Cirrus costing about $200,000 for 75 days a year.
Business Jet Travel pairs private jets with a full-service travel agent out of Melbourne’s Essendon Airport. Founder Vas Nikolovski says its ISO 9001:2008-accredited travel arm enables BJT to build itineraries around international commercial flights, accommodation and private jet needs. A 50-hour block with BJT would cost $3700 an hour.
Adam Bond’s Jet Network pulls together six operators and more than 20 jets to service large corporations on demand around the country. A 50-hour block with The Jet Network costs $3500 an hour and drops marginally for larger blocks of time.
Given organisations can fly up to eight people for each of these private jet hours, the cost is comparable to flying business class but with the benefit of a bespoke service.
Just make sure you’ve got the Champagne on board for when you’ve sealed the deal.
Source: http://www.afr.com
People would not normally be able to make regular use of this type of travel unless they had jet money – personal net worth of about $50 million. And that’s just the entry level.
It’s worth it if you can afford it, though. The benefits are many: never having to handle your luggage; limo service from door to door; two pilots and full-service air stewards; and a stored personal profile that ensures all your in-flight needs are met, right down to having the Taittinger Champagne chilled and on ice when you board.
There’s also the convenience of skipping the whole security routine and not having to arrive for your flight until five minutes before you’re due to take off. And the plane will never, ever leave without you.
That’s what it’s like on NetJets at any rate, the company that pioneered fractional jet ownership in the United States and Europe. Fractional ownership gives individuals or businesses the benefits of whole-aircraft ownership at a fraction of the cost and without any of the responsibilities. You’re buying a percentage of time in the sky, if that makes sense, of a plane’s fly-able hours each year. But the upkeep, preparation and maintenance are dealt with by the operator, not you.
The jets I’ve flown with that company – mainly Cessna Citation Xs and Gulfstream GIVs – even have gold-plated seatbelt buckles.
While that’s all very nice, the main benefit of flying privately offers corporations and their time-poor executives the convenience of being able to “hub bust” – get to places commercial airlines may not readily access (if at all ) at a moment’s notice without the need for long layovers and multiple connections. Other incidentals like the need for overnight stays and associated expenses simply go away.
Fractional jet ownership of the NetJets ilk, however, has never taken off in Australia because we don’t have the infrastructure or the market to support it. Runways tend to be too short in rural areas, and most of our main business destinations are well served by commercial airlines.
The offering from a fractional operator, therefore, would need to be particularly good to justify the spend. This is especially so given the uncertainty in financial markets and the negative flow-through effects it is having on companies.
Shareholders, also, increasingly frown on executive behaviour that could be perceived as extravagant.
Regardless, three different companies have chosen this time to launch themselves into the private aviation market. Their view is they will use the next six to 12 months to educate the market about their offerings so they’ll be well positioned to capitalise on better times when they arrive. The good news is you don’t need jet money to fly with any of them. Their offerings all differ and are designed to appeal to different parts of the business market.
But interestingly, they all have a common pitch, and it’s all about productivity gain. Perhaps that’s not surprising when you consider what a hot topic that is at the moment. The combined impact of the high Australian dollar and greater international competition has made productivity improvement a priority across most industries. Still, it remains a challenge. The Reserve Bank of Australia has suggested worker mobility will be a crucial part in facilitating much-needed improvements in future.
Business aviation offers enormous scope in helping bring that about, says the managing director of The Jet Network, Adam Bond. But Australian attitudes and conservatism towards jets need to change first.
“What we’re up against here is … the long-standing perception in Australia that jets are an unnecessary extravagance,” Bond says. “What they really are is a productivity tool that allows companies to leverage their key employees and increase transaction speeds and their response to the market.”
Of the three new offerings, Avia Aviation is hoping to attract small and medium businesses to its fractional-ownership model. It only offers single-engine or prop planes, which aren’t recognised as the safest way to get around.
I have to say I was somewhat nervous about going up in a Cirrus SR22 the other week when Avia invited me to test-fly its aircraft.
But pilot and Avia founder George Gunter told me to relax because the plane (which friends later described as a “bug smasher” and “crop duster”) had a parachute. If things “went wrong”, a massive rocket would punch through the fuselage and launch a chute – 30 metres in diameter – into the sky. It would destroy the plane, Gunter said, but provide for a softer landing. Oh good! I felt much better climbing on board.
Avia is aiming for a fleet of five to 10 aircraft from its Moorabin fixed-base operation. Ownership will be offered in quarter- to one-eighth shares in the planes, with a quarter share of the Cirrus costing about $200,000 for 75 days a year.
Business Jet Travel pairs private jets with a full-service travel agent out of Melbourne’s Essendon Airport. Founder Vas Nikolovski says its ISO 9001:2008-accredited travel arm enables BJT to build itineraries around international commercial flights, accommodation and private jet needs. A 50-hour block with BJT would cost $3700 an hour.
Adam Bond’s Jet Network pulls together six operators and more than 20 jets to service large corporations on demand around the country. A 50-hour block with The Jet Network costs $3500 an hour and drops marginally for larger blocks of time.
Given organisations can fly up to eight people for each of these private jet hours, the cost is comparable to flying business class but with the benefit of a bespoke service.
Just make sure you’ve got the Champagne on board for when you’ve sealed the deal.
Source: http://www.afr.com
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