Two leading fractional ownership programmes have entered the pre-paid block charter-based jet card market as they strive to lower the cost of entry into business aviation and fill the gap between fractional ownership and charter.
Bombardier Flexjet and Cessna CitationShares will also be hoping to emulate the success of block charter jet card pioneer Marquis Jet Partners. The New York-based company began operations early last year subleasing its NetJets fractional ownership shares to its Private Jet Card members in one-year, 25h blocks. The company has over 500 customers and boasts a renewal rate of around 100%. Marquis is also NetJets' biggest customer.
Like NetJets, Bombardier Flexjet has entered the jet card market through a third party, Delta Air Elite Business Jets. This decision, says Mike McQuay, president of Bombardier's Flexjet and Skyjet operations, allows Bombardier to "spread the costs and the risk and to avoid being over stretched".
Members can specify one of four Bombardier models for which they are charged in blocks of 25h: $107,900 for the Learjet 31A, $139,900 for the super light Learjet 45, $154,900 for the mid-size Learjet 60 and $264,000 for the large cabin Challenger 604. Members also have the flexibility to upgrade or downgrade between the types at short notice.
Cessna and Tag Aviation, however, have elected to market the 25h Vector Jet Card programme through their CitationShares brand. The Vector Jet Card programme will be offered from early next year and members will be charged in blocks of 25h for shares in a Citation type, from $84,995 for an entry level Citation CJ1 to $144,995 for a super light Excel. "With the exception of [federal excise] tax, there are no additional costs, such as fuel surcharges, international fees or landing fees," says CitationShares chief executive Steve O'Neill.
Both programmes are aimed at individuals and companies that are not ready to make a long-term commitment to fractional ownership, but need the comfort and flexibility that business aircraft can offer.
Meanwhile, CitationShares has placed an option for up to 50 mid-size Sovereigns, deliveries of which will begin in 2006, depending on demand.
Flexjet is scheduled to take delivery by year-end of four of the 17 Challenger 300 supermid-size business jets it has on order, along with two deliveries of the Learjet 40 light business jet.
Source: Flight International
