ExecuJet Aviation Group is taking private jet aircraft ownership to a new level with the announcement of a new corporate aviation program tailored to the needs of governments, corporations and high net worth individuals. The company is launching the programme to initially be focused on wide-bodied business jets, and has identified emerging markets as key for this new business model.
Reaching beyond fractional ownership, where members typically buy into a share of a jet, with a set number of flying hours a year, ExecuJet’s proposition is to have full use of your own aircraft, for a typical programme period of 5 years, without all of the classical responsibilities and risks of ownership.
In a major expansion of its portfolio of aviation activities, ExecuJet will acquire of the aircraft, and then insure the aircraft, provide crew, manage and operate the aircraft under seven, Air Operating Certificates (AOCs). ExecuJet would naturally also arrange maintenance and technical support and provide all the fixed base operations (FBO) and ground handling services - all for a set monthly fee. When the client flies, this shall also be charged at a fixed hourly rate; thereby reducing the risk of operating cost variations. Additionally, should the client wish to make the aircraft available for charter to third party customers, and so generate income to offset the monthly fee, ExecuJet would provide this capability. This then encapsulates all costs and risks into a programme with a fixed monthly cost, fixed hourly rates, and limited variable costs to be on charged on a monthly basis.
Launching the programme in London today, ExecuJet CEO Niall Olver highlighted that acquiring, operating and ultimately disposing of a business jet can be a tough and laborious process - which involves dealing with a regiment of specialists from consultants to banks and insurers - who may not always be familiar with the nuances of the private jet market. “We are proud to announce that ExecuJet will be the leader in to combining all private aviation services, in the form of a ‘beginning to end’ full aircraft access programme, that truly benefits our clients with a simply and efficient solution.”
Clients will also benefit from the unique ExecuJet offering of determining costs that can be budgeted for with no asset and life cycle financial risk. At the end of the five year term, the client will simply ‘hand the aircraft’s keys back over to ExecuJet, or if so contracted at the outset, can take ownership in return for a balloon payment.
Clients signing up to the programme will benefit from the knowledge and expertise of ExecuJet, based on its global reach, stellar safety record and the extensive capabilities of it’s numerous regional locations around the world. In addition to existing markets, ExecuJet has identified new and emerging markets such as Asia, Russia and India as being among the territories most likely to be interested in the new programme.
“Operating a business jet has never been a simple proposition. The process is very time consuming - which aircraft, new or used, how do I know I am getting value for money, what about resale? As a result, in recent years, newcomers to the business aviation fraternity have often gravitated toward fractional ownership. In Europe, the fractional fleet exceeds 100 aircraft (from zero at the beginning of the decade). Today, more than 1,000 individuals or companies hold fractional shares in business aircraft,” said Niall Olver.
Typically, fractional owners fly 100 to 200 hours a year in business jets. At higher utilization rates, full ownership can be more economical, but traditional full ownership lacks the simplicity of dealing with a fractional provider, and entails a major investment in an aircraft.
This is where ExecuJet’s new ownership programme comes to the fore. “It was born out of recognition of a gap in the market,” adds Gerrit Basson, Group Managing Director. “Over the past year 18 months we have seen that regular fractional owners are starting to look to the next level - they want an interim step - the ability to call on their own aircraft - but they do not want the responsibility of full jet ownership. We are addressing this with our new jet ownership programme.