A legal battle is under way between the nation’s largest private aviation provider and two of the major FBO chains over whether NetJets’ aircraft charter and management arm, Executive Jet Management, can require the chains to provide fuel discounts to aircraft owners and operators whose aircraft are not part of the company’s fully managed fleet.
Charter and Fractional » Fractional
News and issues concerning the fractional-ownership industry and markets, including company announcements, regulations, new developments and labor issues.
Bombardier’s Flexjet subsidiary reported a strong first quarter, led by growth in new buyers as well as higher levels of activity by existing fractional-share, jet card and lease customers. In the first quarter, new business was up 83 percent, fractional share sales up 108 percent and jet card sales up 48 percent over the same period last year. “Our flying is not only up with all the new sales,” said Flexjet president Deanna White, “but also our existing customers are ramping up their flying time.
Fractional provider Bombardier Flexjet reported an 83-percent rise in new business growth in the first quarter versus a year ago. During this period, its fractional sales reportedly climbed by 108 percent, while new jet card sales rose by 48 percent. During the Easter travel weekend, Flexjet recorded flying hours at levels not seen since the height of the market in 2007. As a result, Flexjet said it is currently hiring pilots to satisfy the increasing demand.
NetJets Europe plans to operate Embraer Phenom 300s by early 2014, the two companies announced today at EBACE. Holding a firm order for 50 of the specially outfitted “Signature Series” light jets, NetJets took its first delivery on May 1 for its U.S. operations.
Embraer Executive Jets delivered the first of up to 125 “Signature Series” Phenom 300s to NetJets during a ceremony on May 1 at the aircraft manufacturer’s Phenom assembly facility in Melbourne, Florida. In October 2010 NetJets placed a firm order for 50 of the specially outfitted light jets, with options for 75 more. Including all options, the order is worth more than $1 billion.
Embraer Executive Jets delivered the first of up to 125 “Signature Series” Phenom 300s to NetJets during a ceremony yesterday at the aircraft manufacturer’s Phenom assembly facility in Melbourne, Fla. In October 2010 NetJets placed a firm order for 50 of the specially outfitted light jets, with options for 75 more. Including all options, the order is worth more than $1 billion.
Aircraft lease, equity charter and fractional provider Executive AirShare says it recorded its “most successful” year ever and the third consecutive year of double-digit growth last year. The Kansas City, Mo.-based regional fractional operates the largest fleet of Embraer Phenoms, with more than 140 fractional shareowners and another 36 members in its lease and aircraft management programs. The company has 43 aircraft–King Airs and Phenom 100s and 300s–in its combined fractional and managed fleets and more than 140 employees at six cities in the Central U.S.
Deer Jet launched the first fractional aircraft program in China yesterday here at ABACE 2013. It is now selling shares in a Gulfstream G450 and a G550, the latter of which is on display this week in the show’s static display.
“As the largest aircraft charter company in Asia and the first to do aircraft management in China, it is our responsibility to create a fractional share product here,” said Hu Lei, general manager of asset management for Deer Jet. “We also believe it is the right time to offer this type of program in China.”
Beijing-based Deer Jet launched the first fractional aircraft program in China today in Shanghai at ABACE 2013. Deer Jet, which has 30 business jets spanning 13 types in its charter and management fleet, is currently selling shares in a Gulfstream G450 and G550, the latter of which it has on static display this week at the show.
The Deer Jet “Time Share” program is customized for the Chinese market and is targeted to customers who fly between 100 and 300 hours per year. There are two distinct products under Time Share: fractional aircraft shares and block charter.
NetJets says that it has made good progress with its joint venture in the People’s Republic of China since announcing its entry into the country’s private aviation market during last year’s ABACE. It will begin by managing and chartering aircraft that are wholly owned by customers, rather than launching into fractional ownership as it did several years ago in the U.S. and Europe. However, fractional aircraft and card services may be added later as the market for private aviation services in China continues to develop, it noted.