Charter Alerts

2016 report includes information and analysis on Part 135 operators - aircraft - revenues - utilization - safety - passengers - airports.

For the first time the U.S. FAA has fully quantified the Part 135 industry, providing a baseline to track its contribution to the economy and the effect of rulemakings on air charter operators. The agency released the long-awaited congressionally mandated FAA Charter Industry Report, finding that 2,155 U.S. charter companies operate 10,655 aircraft to more than 3,000 airports. The companies average 19 employees, have only a couple of aircraft and report less than $2.5 million in annual revenues. Business jets account for 30 percent of the fleet, with the remainder made up of pistons, turboprops and helicopters.

“In requesting this report, Congress recognized the importance of the air charter industry to the aviation sector and the fact that a full understanding of this segment’s importance to the national economy requires information culled from a number of disparate sources,” said NATA president and CEO Tom Hendricks. The report illustrates the vital role charter operators play in the economy, reaching five times as many communities as schedule airlines, he said. The FAA’s study also “underscores the folly” of assessing user fees on that segment of general aviation, considering that most on-demand operators are small businesses, Hendricks added. Noting the report depicted a reduction in the number of charter certificates, he said, “Why would we want to make that harder by allowing an airline-dominated air traffic control corporation to become the de facto economic regulator of small businesses providing the only air service to thousands of communities across this nation?” Source: AINonline

U.S. charter operator SevenJet announced the addition of three more Avanti Piaggio turboprops - with still 2 more in conformity coming online soon - making eight total they will operate under Part-135, offering jet cards and on-demand charter. SevenJet has started a fractional program for Piaggio Avantis at its base in St. Petersburg, Fla., using both former employees and aircraft from bankrupt Avantair. Notably, this marks the return of a fractional program for the Italian twin turboprop since Avantair, which also was based in St. Petersburg, ceased operations in June 2013.

The entire SevenJet fleet nationwide with aircraft/operator details are available ONLY in FlightList PRO.

“The Avanti is a great aircraft thanks to its jet-like midsize cabin and speed combined with turboprop economics,” SevenJet president Chuck White told AIN. White, a former vice president at Avantair, said that the company specifically chose St. Peterburg as the base for its six Avantis—all former Avantair airframes—since there is still a good pilot base for the aircraft there. Paul Woodard, the head of sales at SevenJet and a former customer service director at Avantair, rounds out the company’s leadership team. “We’re only operating east of the Mississippi for now, as we don’t want to become over-extended like Avantair did when it pushed westward,” he said. SevenJet is operating the Avantis under Part 135 rules and is offering jet cards and charter service in the aircraft. The company’s fleet includes four Beechjets based in Salt Lake City. SevenJet is a subsidiary of C&L Aviation Group, an aviation maintenance, parts and support based in Bangor, Maine. C&L also maintain’s SevenJet’s fleet. Source:  AINonline and SevenJet

The below are new operators and aircraft to charter availability; light and heavy jets in California, Texas, St. Louis, Florida, Teterboro, Boston and internationally in the Middle-East:

• Gateway Aviation Management, Inc. (new charter operator) Citation Encore, KCPS St. Louis, MO

• JetsPlus (new charter operator) Citation I/SP, KFAT Fresno, CA Citation III, KFAT Fresno, CA

• TapJets, Inc. (new charter operator) Falcon 10, KHOU Houston, TX

• Silver Air Gulfstream IV-SP, KCMA Camarillo, CA

• Solairus Aviation Falcon 900DX, KOAK Oakland, CA Global 5000, KBED Bedford, MA Legacy 450, KMCO Orlando, FL

• Meridian Air Charter Falcon 7X, KTEB Teterboro, NJ Gulfstream GIV-SP, KTEB Teterboro, NJ

• GainJet Challenger 605, OJAM Amman, Jordan

• Qatar Executive Gulfstream G650ER, OTBD Doha, Qatar Gulfstream G650ER, OTBD Doha, Qatar

FlightList PRO tracks the industry and regularly updates the world's largest air charter resource as the only platform with every aircraft and operator certified for charter worldwide. Free 30-day trials of the air chater resource platform are currently being offered.

- A chorus of charter executives in the private aviation industry say business is booming due to several factors -  "This is a tremendous time to be in aviation,” according to Cory Rossi, who, with his wife, Shari, owns Eagle Air, a charter operator based at Westchester County Airport (HPN) in White Plains.

By Dave Donelson, Westchester Magazine, 5/10/16

“It’s a very large business in this area,” says Linda Schiavone, charter sales manager for White Cloud Charter, which is also based at HPN. “Just think about the number of major corporations and wealthy individuals; this is the area for it.” According to Rossi, HPN is the third-busiest airport in the country in terms of non-airline flights. Only Teterboro Airport in New Jersey and Van Nuys Airport in California boast more private traffic. According to the FAA, there were about 125,000 charter, air taxi, and private flights at HPN in 2014, which represented 82 percent of the total takeoffs and landings there. What’s more, they carried more passengers than did the scheduled airlines. It’s not hard to see why private aviation is growing in popularity: Anyone who suffers the agitation of flying commercial from LaGuardia Airport (LGA)—which Vice President Joseph Biden once described as reminiscent of something in a Third World country—could attest to that. Much the same holds true for JFK and Newark. “The all-day hassle with a two-hour flight in-between is becoming more and more common,” Rossi points out. “Our clientele recognizes this and says: ‘First class isn’t at the level it once was.’” Eagle’s customers, like those of other charter companies we spoke with, experience something entirely different. Rossi describes the charter experience like this: “Let’s say you live within a 20-minute drive to Westchester airport. Your car drives right on the tarmac to the aircraft; the red carpet is rolled out; your catering is on board; and you have WiFi on the plane. The ground crew will handle your bags and park your car, and the plane will depart within 10 minutes of boarding. At your destination, you will have the same experience on the ground.” Sure, it costs more, but what is your time and comfort worth? The private-aviation business isn’t monolithic. Some companies, like White Cloud, charter only their own planes, which are also at the (occasional) call of the company’s corporate parent, Conair Corporation. Others, like Aircraft Services Group, operate and manage planes owned by others, providing everything from crews to maintenance, as well as charter service for the aircraft, much like a vacation-home owner who rents out a condo when they’re not using it. Eagle Air does both, as does Tradewind Aviation, which is based in Oxford, Connecticut, but offers flights from HPN.

Eagle Air

Then, there are strictly private planes owned by individuals and corporations for their own use. They, along with the charter operators, support another big part of the business, fixed-base operators. FBOs, as they are known, provide hangars, fuel, and on-site maintenance, as well as ground amenities like passenger lobbies, parking, and rental cars, to planes going and coming through the airport. HPN has five FBO facilities. Tradewind, meanwhile, serves yet another part of the market. “We’re best known for our Nantucket shuttle,” explains Tradewind president Eric Zipkin. “It is a shared charter, where people buy individual seats on the flights.” The service started with Friday-through-Sunday flights only but has grown to seven days a week. They fly a similar service to Boston and Martha’s Vineyard. The scheduled service is a good business on its own, Zipkin says, but it also serves another purpose: “Our shuttle service is a good marketing concept because people learn about us, then come back and charter individual flights.” Tradewind operates 18 aircraft, up from 12 just two years ago. The company owns 11 planes, with the balance owned by others. “Our business was up almost 30 percent in 2015, and it’s full steam ahead for this year,” Zipkin says. “Margins in this business run the gamut. Boutique aircraft management companies like ours are in the 20- to 30-percent range. It’s also a high-risk business: If you lose management of an aircraft or two, there goes your profit.” White Plains-based Wings Air Helicopters represents yet another variety of local private aviation: helicopter service. Wings’ president, Javier Diaz, says his five helicopters serve three distinct markets, including personal travel. “We do up to seven flights a day to the Hamptons,” he says, adding that Saratoga Springs and other locations upstate are popular, too. “We also have a strong business with the Atlantic City casinos, as well as Mohegan Sun and Foxwoods.” Business travelers take advantage of the versatility and convenience of helicopter service, especially out of Manhattan. “If you want to fly from NYC to Pittsburgh,” Diaz points out, “all you have to do is go to one of the heliports, and you’ll be in the air 90 minutes before you could even get on an airplane from LGA.” About 65 percent of his passengers fly from one of the three heliports in Manhattan. Then there is the aerial-movie-and-photography business, which is so good, Diaz is a member of the Screen Actors Guild. “As people become busier and wealthier,” Diaz says, “their time becomes more valuable. They need to get to places ‘now,’ and that’s why the demand [for private aviation] is good. The demand will be there for the foreseeable future.” Speaking of the future, does it hold tailwinds or headwinds for the private-aviation industry? Not surprisingly, regulation and technology may well be the determining factors. Google “air charter Westchester,” and you’ll get about 154,000 results. Almost all of them are for charter brokers—unregulated companies that don’t own, fly, or manage planes and may not even have an office. Brokers aren’t new, but their numbers mushroomed as instant worldwide communication enabled anyone with a cell phone and email address to open shop. Good ones, who can be reached 24/7 and have strong relationships with the charter companies, add value to the experience for both their customers and the airplane owners—but it pays to shop around. A wave of new private-air-service concepts is rising along with demand in the market. As with anything new, some succeed and others don’t. Beacon Air debuted a Netflix-like subscription service in which passengers paid a flat monthly fee for unlimited flights from HPN to Boston last year, but it has already ceased operations. ImagineAir, headquartered in Atlanta, started service in 2007 and entered the Westchester market two years ago. Its concept? On-demand private jet service at sharply reduced rates. Its service is aimed at business travelers who might be tempted to drive to their destinations. “We basically turn a three- to eight-hour drive into a one- to two-hour flight,” says President and CEO Ben Hamilton, who adds, “Our average price point is around $1,200, whereas a private jet might be $7,500.” ImagineAir is able to offer the service because they fly a fleet of Cirrus SR22s, a three-passenger craft that’s very efficient, Hamilton explains. “We do mostly business trips, and the majority of them are three people or fewer. We have enough scale in our fleet of 11 aircraft to mix and match flights and fill dead legs, passing those savings on to the customer.” The company also handles bookings online rather than through a call center and, like a scheduled airline, uses demand-pricing models. “Our average customer books about four days in advance. You can book the same day if it’s available, but the price gets a little more expensive as the time gets closer,” Hamilton explains. Any number of companies have been hailed as the “Uber of private aviation,” although none have (or probably will) been able to get past the FAA prohibition against selling seats in personal planes flown by amateur pilots. The safety requirements that charter operators have to meet are a major factor. That’s not to say there aren’t companies getting closer. “There are companies who have partnered to market empty seats,” White Cloud’s Schiavone points out. “If you’re in Chicago and want to get back to White Plains, there’s an app for that now. If there’s an aircraft flying empty on a leg, it just makes sense.” Blue Star Jets, a NYC-based jet broker, recently launched an app that includes 24/7 personal telephone contact, to follow-up on the booking you make on your smartphone. Their business is designed to fill the 30 percent of business aircraft they estimate fly empty to or from their charter destination. The company claims that within four hours of booking a flight, you’ll be in the air. Still, the industry does face some headwinds. “The uncertainty of the regulatory environment is a long-term obstacle,” Zipkin explains. Potential changes in security procedures, for example, could put a crimp in the private-aircraft experience. “We have internal security, but not the stand-in-line, take-your-shoes-off type of thing,” he says. Another problem area is a shortage of pilots, according to Zipkin. “The FAA changed the rules for airline requirements for copilots, and that has had a ripple effect throughout the industry,” he says. “We used to pay twice what an entry-level airline pilot would make, because we wanted to attract the best candidates. The airline had trouble filling those seats, so they started raising their pay, which has set off a sort of race.” Rossi adds one more industry-wide threat: budget constraints on air-traffic control. “The federal government has threatened to shut down operations at a number of small airports around the country,” he says. The ability of private-flight passengers to land at small airports, like Hilton Head Island Airport instead of Savannah International, is a big attraction for the business. “I’d hate to see that becoming a limiting factor on growth of the industry,” Rossi notes. Overall, however, the private-aviation business in Westchester is strong. As Zipkin says, “The challenges we face are those faced by any business that’s growing. Our product has been very well received, and the market is growing here, so it’s onward and upward.” Source:  Article in Westchester Magazine online

Source:  Company Press Release

All types of empty leg charters –  business turboprops through long range jets – available throughout the U.S.

New Flight Charters announced today that it is making available over 150 jet charter empty legs focused on the top private jet destinations nationwide. These empty legs are available across the country, and are created when an aircraft needs to move for one reason or another, such as to pick up its owner, or returning home from a factory servicing, or returning to base after a charter flight. This need to move the aircraft can result in low point-to-point pricing, and can be the absolute best values in private jet charter. For example, a typical empty leg can be booked at around 50% the cost of a regular jet charter. Currently, a Los Angeles to Las Vegas empty leg in a Beechjet 400A seating 8, lists at $2,900. While, a normal charter rate for this routing is around $6,000. Click to view the complete list of available empty legs. “The most common misperception is that empty legs are available between only those cities or airports listed,” said Rick Colson, President of New Flight Charters. “Empty legs are usually listed as between two certain airports or cities because this is actually the departing and arrival points the aircraft is going, “he added. “However, a charter can be flown anywhere along that very general route and direction. For example with a empty leg listed from Scottsdale, AZ to Philadelphia, PA, the aircraft can fly a charter from Los Angeles to New York at a discounted one-way price,” said Colson. One-way charters may have a special cancellation clause because of their price advantage and their need to arrive at the other end. The aircraft may have a charter booked after the current one-way, which is dependent on it being in that vicinity. At any given time, hundreds of empty legs are scheduled in the jet charter industry.  New Flight Charters has culled them to 150 of the most popular destinations.  Any other destinations and routings can be searched by request. Generally speaking floating fleet aircraft have a standard cancellation policy and true empty leg charters are non-cancelable upon booking. Visit the nationwide empty legs list at NewFlightCharters.com or the specialty location Denver Jet Charter or Colorado Empty Legs for Denver, Aspen and other Colorado private jet charters. Source:  Company press release

  Fortune.com May 5, 2016: BlackJet, an on-demand private jet service created by Uber co-founder and chairman Garrett Camp, yesterday informed members that it is “abruptly” ceasing operations. The Florida-based company was launched in 2012, with the financial backing of venture capital firms (including First Round Capital and CrunchFund), tech executives (including Mark Benioff and Matt Mullenweg) and celebrities (including Ashton Kutcher, Jay-Z, and Will Smith). The idea was basically to be Uber for the jet-set, eventually settling into a membership model whereby people paid an annual fee in exchange for access to a network of private jets on which they could book seats. But there were numerous hiccups (including layoffs and a prior service suspension), largely due to capital constraints that seem to have persisted. During the reorganization, Camp was among those who moved on (and gave up his investment). In fact, TechCrunch inaccurately reported last month that the company had shut down, an incident that BlackJet CEO Dean Rotchin appears to have cited among the reasons for today’s decision (the story was later updated with a correction). A bigger one, however, was financing. “We probably did more with less than anyone but it’s a critical mass business… There’s a reason why ‘critical’ is part of ‘critical mass,'” Rotchin tells Fortune. “The members were super supportive, the VCs wanted to see our progress continue over a longer period prior to jumping in. There are some aggressive interesting models out there today, someone will make this work.” Below is Rotchin’s full email to members:

Dear Member:

It is with great regret and personal disappointment that I need to report the following. Recent events have resulted in abruptly ceasing BlackJet operations.

In the last few days, there was some inaccurate bad press that stunted membership sales, a critical team member stepped down unexpectedly, near-term and longer term financing opportunities were delayed, and it became impossible to continue.

I personally appreciate the amazing support from most of our members. Perhaps I did not do a good enough job of reinforcing the fact that the membership was the key to the ability to deliver the service. Some members were so supportive, and I feel it is important to highlight this aspect because it became evident how most members tried to be as helpful, flexible and cooperative as possible. This was and is very much appreciated.

We are widely considered the pioneers in this field, and we know someone will leverage our learning and crack the code for making the private airfields and private jet fleet affordable and accessible as a part of the US transportation system. Your vision and involvement as early adopters helped to progress this ideal closer to fruition.

Please accept my thanks for your support, and also my sincere apologies for the inconvenience and disappointment this causes.

Sincerely, Dean

Source:  Fortune online article May 5, 2016

Exclusive Charter Service is introducing special fixed-rate charters from various U.S. airports into the country’s main gateway, José Martí International Airport, according to a release from the company. Flights in one of the company’s seven-passenger Piaggio Avanti II twin turboprops from Palm Beach International will be priced at $9,000 each way, or $10,000 from Fort Lauderdale or Miami and $11,000 from Orlando. In a Hawker 800XP, the Palm Beach rate is $10,500, rising to $13,500 from Fort Lauderdale or Miami and $15,500 from Orlando.  The same aircraft charter from New York’s JFK International Airport is priced at $19,500. Exclusive’s clearance to operate into Cuba extends to 17 other airports in Atlanta, Austin, Baltimore, Boston, Chicago, Dallas, Houston, Los Angeles, Key West, Minneapolis, New Orleans, Oakland, Pittsburgh, San Juan (Puerto Rico), Fort Myers, Tampa and Washington. It can also offer another 10 different aircraft types, including the Gulfstream G650. Cuba flights are operated by Custom Jet Charters, LLC. Meanwhile, the Florida-based company recently launched a membership program called Aero Club. With an annual membership fee, members receive fixed point-to-point flight-hour pricing for various categories of aircraft. Source:  AIN Online

Available only in FlightList PRO, charter operator JetsPlus flies their Citation light and midsize jets from their base at KFAT Fresno, CA, within easy positioning of the San Francisco Bay Area (132 NM), and Los Angeles (165 NM).  The aircraft are operated under FAA Part-135 certificate CVDA043D. JetsPlus also operates for charter a Cessna 182 Skylane single engin piston based at Fresno Yosemite Int'l Airport. JetsPlus is listed and available only in FlightList PRO.  Free 30-day trials upon request. Full access for 3 users is available at only $90, no contract, cancel any time.