Jet Republic late last month launched a major new European fractional ownership, lease and block-charter program and revealed itself as the previously unidentified customer for up to 110 Bombardier Learjet 60XRs. (It has firm orders for 25 of the aircraft.) The deal is valued at up to $1.5 billion. Deliveries will begin in October next year and will run at a rate of about one aircraft per month.
Jet Republic today announced the launch of a major new European fractional ownership, lease and block charter program and revealed itself as the previously unidentified customer for up to 110 Bombardier Learjet 60XRs (25 of which are firm). Deliveries will begin in October next year and will run at a rate of about one aircraft per month.
A substantial majority of fractional aircraft share owners indicated that they are satisfied with their current program. According to the latest Fractional Aircraft Ownership Experience Study, conducted for the fifth year by Aviation Research Group/US of Cincinnati, 92 percent of fractional aircraft customers are satisfied with their current program and program provider.
The FAA’s concern that a critical part on the Bombardier Learjet 45 “was not manufactured per the type design data” led it to ground the entire fleet of 173 U.S. Learjet 45s on August 13. The UK followed suit and promptly grounded the 11 Learjet 45s on that country’s register.
What is fractional ownership in Europe? Judging by the way the concept has morphed since it started to appear in the continent during the second half of the 1990s, the answer might well be “whatever sir or madam would like it to be today.”
At first glance, the fractional industry, like the alien menace in a sci-fi thriller, appears to be morphing into a menagerie of hybrids. But in reality these hybrids are essentially sales and marketing programs of existing operations, both fractional and charter.
Executive Jet Aviation owner and CEO Richard Santulli brought the fractional-ownership concept to the business aviation community in the mid-1980s. Santulli created a program called NetJets, selling aircraft in shares ranging from 1/16ths to halves.
According to Aviation Research Group/US (ARG/US) of Cincinnati, the great majority of fractional aircraft share owners are satisfied with their program and plan to renew. According to ARG/US president Joseph Moeggenberg, 82 percent of fractional customers indicate they are satisfied with their current fractional program and 80 percent intend to renew with that same program. provider.
The Learjet 40 received its FAA type certificate on July 11 as an amendment to the certification of the Learjet 45 from which it is derived. The Learjet 40 is a truncated (by 24.5 inches) version of the Learjet 45, sharing most of the same systems. Delivery of the first customer aircraft is expected early next year.
The growth of fractional aircraft share sales has cooled recently, reflected by delayed and canceled orders for new aircraft by fractional providers (AIN, May, page 1). Another apparent reflection of the downturn is the sharp reduction in total pilot hiring by the major fractional providers.