NetJets Europe has placed a “historic” $1.1 billion order for 24 Dassault Falcon 7Xs scheduled for delivery between the first quarter of 2008 through 2014. NetJets chairman and CEO Richard Santulli said the transaction, signed in Paris this morning with Dassault Aviation chairman and CEO Charles Edelstenne, is the “largest business jet order in European history and the second largest order ever” in terms of billings.
Charter and Fractional » Fractional
News and issues concerning the fractional-ownership industry and markets, including company announcements, regulations, new developments and labor issues.
Houston-based regional airline ExpressJet announced here at NBAA’06 that it planned to open a new division to fly corporate charter services using 10 Embraer ERJ 145XRs scheduled for removal from its Continental Express feeder network. Plans call for the new unit, called ExpressJet Corporate Aviation, to start operations in December and absorb all 10 ERJ 145s by next May.
Preparing for future growth of its U.S. and European operations–and in spite of mounting losses–fractional ownership giant NetJets has placed orders for 72 business jets valued at more than $1.6 billion.
The nine-month-old NetJets pilot contract, which raised wages substantially, isn’t having the speculated adverse effect on profits at the fractional provider.
The FAA had planned to deliver Operations Specifications C082 on calculating new landing-distance safety margins by June 30, but it is still in a draft version.
More than 20 years ago, fractional jet ownership began with NetJets and then expanded rapidly in the late 1990s with the growth of Raytheon Travel Air and Flight Options (now just Flight Options, which is wholly owned by Raytheon), Bombardier’s Flexjet and the Cessna/ TAG Aviation CitationShares joint venture, among others.
NBAA and the National Air Transportation Association (NATA) expressed concern about the FAA’s June notice requiring the addition of a 15-percent landing-distance safety margin. NBAA and NATA believe that the FAA is bypassing the normal regulatory process.
The FAA is expected to push back “a few weeks” the implementation dates for the 15-percent runway safety margin requirement. A four-week delay, for example, would require air carriers to submit compliance procedures to their POI by October 1, with implementation required by November 1.
As recently as four years ago, some observers openly questioned whether Bombardier’s Flexjet fractional ownership operation would still be around in 2006. Today, not only is Flexjet open for business, but it has turned the corner and achieved solid profitability–a milestone accomplishment in the fractional world.
Cleveland-based fractional provider Flight Options this morning launched Fractional First, which it describes as a “purchase and use program designed to deliver up to a 15-percent increase in value through access to more hours or savings on long-haul trips.” The new program is the company’s response to the perceived lack of transparency in the industry.