By: Shane Tritsch
Chicago Business - Crain
Sunday, June 17, 2013
On a business trip to Chicago recently, Jason Roudabush left his
suburban Cincinnati home around 7 a.m., parked at the airport 10 minutes
later and checked in for his flight a minute or two after that. By
7:30, he was on a jet bound for Midway Airport, and by 8:15 Chicago
time—a little more than two hours after walking out his door—he had
reached his destination in the Loop by cab.
After a full day of
meetings, Mr. Roudabush, a partner at a private-equity firm, retraced
his route, arriving at Midway a little before 5 p.m. for his 5:15 flight
back to Cincinnati. “I was home in time for dinner and got to put the
kids to bed,” he says.
If Mr. Roudabush had traveled by
commercial airline, he could not have squeezed nearly a full workday in
Chicago into that time. But because he flew by public air charter,
avoiding the security lines and chaos of commercial airport terminals in
both cities, he was able to shave hours off his travel time.
“To
be able to pull right up to the terminal, get out of the car, get in
the plane and go—that's very attractive,” says Mr. Roudabush, who flies
to Chicago about once a month.
That helps explain why Ultimate Air Shuttle's
30-seat Dornier 328 jets are, on average, 90 percent full on the
Chicago-Cincinnati route—and why public air charters, after failing to
catch on a decade ago, appear to be taking off, giving Chicagoans a
growing, affordable alternative to commercial air travel.
Besides Ultimate Air, two other public air charters operate at Midway: Fly Manistee offers service to Manistee, Mich., about an hour's drive south of Traverse City; Lakeshore Express
has just launched Thursday-through-Sunday round trips to Pontiac,
Mich., near Detroit's affluent north suburbs, and flies Chicago to
Pellston, Mich., near the resort towns of Petoskey and Harbor Springs.
Meanwhile, Ultimate Air,
which operates its Cincinnati-Chicago route on Monday, Tuesday, Thursday
and Friday, is awaiting federal approval to add round-trip service on
Wednesday and offer second round trips on Monday and Thursday.
Eventually it hopes to fly double round trips between the two cities
five days a week. As the company expands, it is considering additional
routes, including Chicago to Minneapolis-St. Paul.
Public charters occupy a
niche between commercial air carriers and private charter services.
Unlike private charters, which book their aircraft to clients who choose
when and where to fly, public air charters sell individual tickets to
scheduled destinations.
There's also a difference in price. A
round-trip ticket from Chicago to Cincinnati on Ultimate Air costs $575,
including all taxes and fees—more than an advance-purchase or
Saturday-stay fare but less than a typical ticket for midweek travel.
Privately chartering the same 30-seat jet for the same round trip would
run roughly $15,000, according to Rick Pawlak, managing director of
Ultimate Air.
'THE MAGIC PLANE'
Over the years, a
few chartered air carriers have tried offering first-class amenities to
passengers on scheduled business-jet flights. In the early 2000s, Indigo
Airlines had regular service between Chicago and Teterboro, N.J. But
round trips cost roughly $1,500 aboard its 10-passenger jets, and the
venture folded in 2003. A NetJets-Executive Jet venture backed by Warren
Buffett, which was to fly Chicago to New York, never launched.
Until
Ultimate Air came along, “no one has really been able to offer almost a
corporate jet experience with an affordable price tag and make it
work,” says Mike Wheeler, general manager of Atlantic Aviation, which
operates a private terminal at Midway used by Ultimate Air passengers.
Ultimate Air's parent company, Akron, Ohio-based Ultimate Jet Charters,
has been in the private charter business since 1984, catering largely
to corporate clients, casinos and college sports teams. But when the
financial crisis in 2008 caused a sharp falloff in business, ownership
hit on the idea of a public charter service to make use of underutilized
aircraft.
Chartered carriers that use private passenger
terminals at busy airports such as Midway or less-congested secondary
airports can save fliers significant time and headaches. Both Ultimate
Air and Lakeshore Express process passengers through Atlantic Aviation's
private passenger lounge at Midway, which is separate from the main
terminal on the south side of the airport.
Passengers can arrive
just 15 minutes before flight time. Parking is free in lots nearby.
Check-in lasts about 11 seconds—the time it takes an agent to compare
the passenger's ID against a manifest pre-screened by the Transportation
Safety Administration.
“It's like having private flight service
for less than commercial flights charge,” says Kimball Derrick, a
Cincinnati-based kitchen and bath designer who spent two years flying to
Chicago almost weekly on Ultimate Air while overseeing the construction
and launch of a cabinetry showroom at the Merchandise Mart. “The time I
was dedicating to the actual travel was minimized, and that time was
productive and pleasant rather than unproductive and stressful.”
For
many passengers, being treated like a dignified guest rather than a
stockyard beast is just as important as the reduction in travel time.
The terminals have free Wi-Fi and coffee and comfortable furniture and
workspaces. When it's time to board, passengers file to the plane and
sit wherever they want. Light snacks and alcoholic beverages onboard are
gratis.
“It was such a shock to be treated like a human being
and to have a pleasant, civilized flying experience,” says Shan Bhati,
global chief administrative officer and general counsel at Chicago
public relations giant Edelman, who flies Ultimate Air from Chicago to
Cincinnati to visit relatives. “I started calling it the Magic Plane.
Now everybody I know calls it that.”
Jay Ratliff, a former
general manager at Northwest Airlines who lives in Cincinnati, says “the
growing airport security mess” has created an opportunity for public
charters selling luxury and convenience to business fliers or affluent
leisure travelers.
DEMAND IS THERE
The other trend
in commercial air travel may offer more opportunity for public charters.
Cutbacks in service are creating gaps in the air-travel network across
the country, Mr. Ratliff says. Fly Manistee is filling such a gap,
connecting its Michigan passengers to the main terminal at Midway, where
they can either terminate their trip or continue on commercial
carriers.
Demand for such service is substantial, says Jim
Gallagher, president of Avoca, Pa.-based Public Charters Inc., which
teams with Ultimate Air Shuttle and Fly Manistee on ticket distribution,
enabling them to book seats through travel websites. Already, he says,
public air charters from Dayton, Ohio, and Evansville, Ind., are
planning service to Midway as early as the fall. And more charters could
be on the way.
“We have lots of airports that are underserved that want to fly into Chicago,” he says.
Story: http://www.chicagobusiness.com
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