Fractional Ownership News
Fractional jet companies woo airline passengers
As the private jet market continues to experience tough trading conditions, several fractional operators have decided to pursue first-class airline travellers to expand their customer base, either by forging alliances with airlines, or by lowering the entry price for their services.
US-based CitationAir has opened its members-only private jet service to British Airways customers traveling in the United States, while Flexjet has teamed up with Korean Air.
“If we got one (new passenger) every day, it would be a home run,” Woody B. Harford, senior vice president at CitationAir told The New York Times. “At $6,000, $8,000 or $10,000 an hour, that’s massive growth in revenues. We’re not selling coach seats.”
“From our perspective, it’s an opportunity to fly a customer we don’t know today,” said Steve O’Neill, chief executive of CitationAir, in describing his company’s agreement with British Airways.
The airlines will receive a commission when passengers book private jets, and Flexjet will encourage its customers to buy first-class tickets on Korean Air. Both airlines say their premium customers will appreciate knowing who to call for private jet travel in America.
Sara Dunham, head of business development for British Airways, said the deal with CitationAir meant more opportunity for revenue. “It’s a core part of our strategy to increase revenue streams, and with private jets there is a lot of synergy.”
The biggest fractional jet operator NetJets, has targeted first and business class fliers by introducing a 1/32nd share of a jet – equivalent to 25 hours of flight time per year – with prices from US$125,000. The company says the new offer builds on the ongoing success and interest in the fractional ownership model for jets that NetJets has seen as business and first class fliers seek to escape the travel disruptions commercial airlines have faced in recent months.
www.netjets.com
www.flexjet.com
www.citationair.com
21/07/10
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