ISSUE 2 AUGUST 2009
Air Partner plays cards cleverly in Dubai
747 faces new freight challenger
PLUS A ROUND-UP OF CARGO, PASSENGER AND BUSINESS AIR CHARTER NEWS
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FOR PROFESSIONALS IN CHARTER FLIGHT PROCUREMENT
ISSUE 2 AUGUST 2009
ISSUE 2 AUGUST 2009
Air Partner plays cards cleverly in Dubai
747 faces new freight challenger
PLUS A ROUND-UP OF CARGO, PASSENGER AND BUSINESS AIR CHARTER NEWS
Kevin Ducksbury, director Middle East & Asia, says marketing Air Partner’s JetCard programme through prestigious partners has proved successful. Story Page 6.
Publisher: Editor:
HIS month I find myself trawling through statistics and forecasts, looking for those ‘green shoots’ of recovery. The latest thinking seems to be that European air traffic movements will be down by something around eight per cent in 2009, in other words back to 2006 levels, and that 2010 will see a modest bounce back. This implies that growth will already have resumed during this coming autumn. But vague statistics do not really tell the story. I’d like to know how business has been for you, specifically. Drop us a line with your experiences and we will compile a report for October which reflects the real levels of business charter brokers are enjoying or enduring. We’ll be happy to keep your comments anonymous if you wish, so please contact Rod by email at rod@charterbroker.aero. Thank you so much for your kind comments
on our first issue in June. We are delighted that air charter organisers from all around Europe are keen, as we suspected, to have a magazine to call their own, and have been filing their requests for a personal copy. But it is never too late: If you are in the business of organising air charter for clients or for your own company, then you can still visit our web site at www.charterbroker.aero and make your claim for a free copy of this magazine by post six times a year. Aircraft operators and others interested in the industry can take advantage of our low subscription price, or simply view Charter Broker online free of charge. Provide your email address and we will advise you when new editions are available. David Wright
David Wright Rod Smith
Production:
Kate Woods
Advertising manager:
Mark Ranger
Chris Carr
Subscriptions:
Janet Bell
Administrator:
Hilary Tyler
Charter Broker 134 South Street, Bishop’s Stortford, Hertfordshire, CM23 3BQ Tel: +44 1279 714505 Fax: +44 1279 714519 email: info@charterbroker.aero www.charterbroker.aero Charter Broker is published six times each year, by Stansted News Limited. Periodicals postage paid at Rahway, N.J. Postmaster: Send address changes to Stansted News Limited c/o Mercury Airfreight International Ltd., 365 Blair Road, Avenel, New Jersey 07001. Company registered in England no. 2224522. Printed by Stones. Charter Broker is sent without charge to qualifying professionals. Please visit the web site to request a copy. The opinions expressed by authors and contributors to Charter Broker are not necessarily those of the editors or publisher. Articles appearing in Charter Broker may not be reproduced in whole or part without the express permission of the publisher. Charter Broker is not responsible for unsolicited manuscripts, photographs or artwork.
AUGUST 2009
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CONTENTS FEATURES
BROKER NEWS
Italian brokers see signs of business recovery
Middle East partners enhance rising appeal of Air Partner’s JetCard programme
Chapman Freeborn Airchartering’s decision to reopen its operations in Italy by establishing a new office in Turin brings into focus the country’s potential for air charter broker business.
CF predicts B777F will compete successfully with 747s
Broker boosts Imperial progress in international sports charter
Page 14
PrivateFly offers operators a ‘photo fit’
INDUSTRY NEWS
Broker and operators seek partnerships to build business in India India is a market with vast potential and brokers and charter operators are working to develop links and joint ventures with international partners to maximise business levels.
Page 6
Page 20
Shannon gears up for autumn pre-clearance business Time-sensitive ad hoc cargoes gain Zurich-Oslo outlet
Page 18
Lufthansa’s in-house competition puts pressure on charter operators
For advertising rates and data visit www.charterbroker.aero CHARTER BROKER 3
NEWS FROM BACA
Brokers need strength in numbers A The world’s largest network for air charter professionals BACA represents the interests of commercial aviation companies particularly in the air charter industries and markets. Membership includes air brokers, charter airlines, airports, business aircraft operators, freight forwarders, consultants and others. www.baca.org.uk
4 CHARTER BROKER
NYONE who has visited the magnificent Musee de l’Air et de l’Espace in the old terminal building at Paris’s historic Le Bourget airport, will learn that the French invented everything when it comes to aviation. From the first hot air balloon ascent by the Montgolfier brothers in 1783, and the first hydrogen balloon, the first humans and animals to fly, the first humans (and animals!) to descend by parachute, the first woman to fly in a balloon and the first woman to fly an aeroplane – the French claim them all. They also invented the dirigible airship and the first seaplane, achieved the first non-stop crossing of the South Atlantic and, more recently, built the only vertical take-off aircraft to reach Mach 2. The Ariane rocket and Concorde were, of course, made in France! In the first 30 years of the twentieth century, French aviators held most of the air speed records, height records, distance records and endurance records. If a Frenchman’s record was beaten, it was usually overtaken by another Frenchman. On emerging from the museum one is left with a feeling of astonishment that the French were responsible for so much when it comes to aviation. Even if you raise a sceptical eyebrow to some of the claims, there is no doubt that France was a leader in the field, and still is. And there is equally no doubt that a Frenchman, Louis Bleriot, was the first man to cross the English Channel by air exactly 100 years ago, thereby establishing that (unless you want to count the balloon crossing by a Frenchman in the opposite direction in 1785) Britain was no longer an impregnable island, but a European country like any other. With that flight, international aviation was born and, ten years later (90 years ago this year) serious commercial passenger flights began between Britain and its immediate European neighbours. Borrowing a language, documentation and a regulatory structure from its maritime forebears, the industry rapidly grew into a framework which would be pretty recognisable to us today. When the Baltic Air Charter Association (in its original incarnation) was created exactly 60 years ago, it too grew out of a maritime background, and acquired its current heritage from the principles and ethics enshrined and developed at the Baltic Exchange over 250 years. But in 1949 conditions were nowhere near as optimistic as they had been 30 years before. Britain was emerging painfully from war, and the brief boost for airlines provided by the Berlin Airlift was coming to a close. Times were hard, especially for the independent operators who had to cope with a government determined to give priority to its new state-run airlines BOAC and BEA. At the time most airlines had no sales department as such, and so they appointed agents to market their services. The agents were usually longestablished passenger ticket companies and I
suppose what we would now call travel agencies, acting as brokers and representing the airlines on the ‘trading floor’ of the Baltic Exchange in London. Gradually the airlines became more self sufficient, and the need for an in-house broker faded away, so today that system has more or less disappeared. The broker often relies less on having a tame airline in his portfolio and more on having a wide overall knowledge of his field, and the ability to offer a value-added service to the client, over and above what the airline itself can provide. Now times are hard again and both brokers and airlines have to go the extra mile to stay alive. Where does a trade organisation like BACA fit into this, and is there any place for such an association in these gloomy times? In fact this is precisely the most important moment for the facilities that BACA can offer. In desperate times all sorts of worms crawl out of the woodwork, and anybody with a cellphone becomes a potential charter broker. The poor charterer can be tempted by amazing offers from people he has never heard of and the internet only helps these newcomers to spread their tentacles. This is the climate in which the customer needs to know who the good guys are and where he can find a reliable, honest and experienced colleague in the industry to guide him in the right direction. A good trade association, in whatever industry, provides that assurance and BACA is the leading trade association in the world specifically based around air charter brokers. This is the place to be, at any time, but particularly right now. An association also offers its members strength in numbers. Whether a company is one of the big international groups, or a small broker with a niche clientele, there are times when we all need to have a common voice. Not only that, we can share advice, warnings and expertise without compromising our individual integrity. We may compete on a regular basis (that’s good for the client), but it’s unlikely that any one of us can do ALL the business in the world, so there is room for plenty of members in our family – including the French, of which we have surprisingly few. Dick Gilbert, chairman, BACA AUGUST 2009
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broker news
Middle East partners enhance rising appeal of Air Partner’s JetCard programme Air Partner Dubai is responding to tough market conditions in the Middle East by launching a multi-faceted marketing campaign targeted at its core high net worth individual (HNWI) clients while simultaneously developing its niche ad hoc cargo charter operations. Kevin Ducksbury, director Middle East & Asia, (front cover photograph) says that Air Partner’s JetCard programme is being marketed in the region in conjunction with prestigious partners including Bentley Motors, the Dubai Polo Club
and the CEO Club. Air Partner Dubai, one of 23 offices worldwide in the Air Partner Group, has been offering commercial airliner, private jet and freight charters since it opened in 2002. “Once JetCard is fully established, branch openings in other key Arab Gulf locations are planned,” Ducksbury adds. “Our major focus is on the requirements of HNWIs.” Ducksbury, who moved to Dubai in August 2008, admits: “It certainly was a difficult time, though coming off a low base, I can still claim that we have seen
Kevin Ducksbury growth in our private charter business even over the last six months. The global economic
Charter start-ups boost Asia Pacific business potential The economic downturn is helping Air Charter Service to build broker business in the Asia Pacific region. Gavin Copus, who heads ACS’s Hong Kong office, says: “We are seeing more and more owners turning to placing their aircraft on the charter market. This helps them cover bills and can also offer them tax breaks. The advantage for us is that we have a larger supply of aircraft to tap into and, with our local presence, we generally get to know about these first. Last month alone we saw three aircraft switch to operating under an AOC purely for charters.” ACS may expand its on-theground presence in the region following the success enjoyed by its Hong Kong office since its opening in May 2008. Copus, who founded the ACS passenger department in London in 2002, says: “Both cargo and passenger charter is going very well. We are beating targets by 46%, and we are currently looking at expanding further in the near future with satellite offices around the Asia Pacific region.” Linguistic expertise and local knowledge are essential for success. Copus says: “The charter market in Asia is a world apart Charter Broker
Air Charter Service’s Hong Kong staff celebrate growing business
Gavin Copus from any other market in which we operate. Local knowledge is essential and we have found that as well as local clients we have been doing business with western brokers and operators who require local knowledge, especially in China. “Language is a major barrier
for many brokers who need to provide their clients with decent charter solutions in the area and since we have brokers who speak both Mandarin and Cantonese, it has made more sense for them to use us rather than risk things going wrong due to details being lost in translation.” Copus point out that the Asia Pacific is a comparatively new market where many people do not yet appreciate the benefits of private charter. “I think that is something that will change over the next decade or so,” he says. “However the charter market in Asia will struggle to catch up with Europe any time soon simply because the major business centres are so far apart.”
downturn has led to a change in the nature of the private jet segment. Formerly it would have been corporates but now opportunities are more evident in other areas. “We are fortunate to have the company’s global experience to draw on, which helps to identify sectors that produce good results even in difficult times – government and military work is a good example; it forms up to 60% of private charter work in our other offices, and is a sector we hope to grow here.” Ducksbury says the JetCard programme has aroused a lot of interest in the region. “We are obviously marketing it direct as well as through partners. I think it is fair to say that, while Air Partner’s expertise in the HNWI market has been established in Europe and North America for years, it does not have the same widespread recognition in the Middle East and this is something we are working hard on.” He adds: “Eid al-Fitr begins in September this year and we expect our marketing initiatives to bear fruit as clients look seriously at their holiday breaks following the observance of Ramadan.” Ducksbury says that the appeal of the JetCard is that the client just has to inform Air Partner where they need to be. “Primarily we anticipate the card being used by Middle East customers for their flights into and throughout Europe. IntraMiddle East flights can certainly be included, though will need to be priced on an ad hoc basis because of the low availability of aircraft on each route. “I believe that we are the first broker to offer a membership card in the Middle East, though there are several in the U.S. and Europe – few requiring as low an entry commitment as ours or offering complete refunds for unused hours.” AUGUST 2009
broker news CF chartered MD83 for safe return of hostage Canadian diplomats
Royal Jet says broker diversification paid off
Shane O’Hare: diversification
Royal Jet’s Shane O’Hare reports there has been an “excellent response” to the launch of the Abu Dhabi company’s charter brokerage service, based in Dubai, which started operations six months ago. “We have been very happy with the initial level of bookings being generated through our own brokerage, which provides complete tailor-made travel solutions through sourcing appropriate aircraft for charter through a network of carefully audited operators,” O’Hare adds. “There is especially strong demand for flights into and out of Europe; but with the brokerage being a global service, we can find the right aircraft at the best price for any request for any journey. No matter what the request, we are now able to guarantee availability even if our own aircraft are fully booked, since through our brokerage we can make alternative travel arrangements, sourcing aircraft from other quality operators.”
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Chapman Freeborn Airchartering, on behalf of a major French insurance company, provided the charter for two Canadian diplomats after they were released by al-Qaeda militants who had held them captive for over four months in Niger. The hostages, a United Nations special envoy and his assistant, were released in northern Mali. The two men were kidnapped in neighbouring Niger. CF’s Paris office was tasked with providing the charter for their safe return to Europe. It kept a vip-configured MD83 on standby for a week until confirmation finally came through that the hostages had been freed. Following an appearance in front of the media alongside Malian president Amadou Toumani Toure, the two men and an additional 12 passengers left on the MD83 from Bamako to a military base in Germany.
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broker news
Fuel division brings broker clients to Air Partner Air Partner reports that its fuel division launch has opened up a new client base comprising other brokers as well as cargo and passenger carriers. Paul Walker, fuel solutions manager for Air Partner Fuel, based at London Gatwick, says: “The stand-alone global trading division is going very well. The new division works 24-7 with 95 oil companies and offers 1,500 locations. This enables us to search for the most competitive rates. The customer can buy fuel from us or ask the operator to get a quote from us.” The new trading arm was launched after a feasibility study and extensive research, prompted by the successful execution of several ad hoc fuel purchasing contracts. Air Partner Fuel specialises in reselling Jet A-1 kerosene, the most commonly
AirGroup expands long haul business Hamburg-based AirGroup Private Jets is expanding its long haul business by enlarging its core geographic area of operations. President Patrick Nueske says that, even in the current recession, there is good demand from countries further afield such as South Africa and the Ukraine which the company is meeting. AirGroup, which is celebrating its fifth anniversary of business, reports that the Learjet 60, Challenger 604, Falcons, ACJs and BBJ are among popular charter aircraft. International business is becoming more important, Nueske confirms, with central and eastern Europe a key region. “AirGroup offers experienced and efficient service in the air as well as on the ground. This combination makes us well positioned to meet all the needs of the most demanding travelers,” Nueske adds. Charter Broker
Air Partner: 1,500 fuel locations
Paul Walker: competitive rates used turbine engine fuel produced to standard international specifications. Clients receive information via Air Partner’s real-
time database of fuel prices and location, taxes and other charges and government restrictions. “The aim is to offer competitively priced fuel and service quality.,” says Walker. “We are confident that our prices truly reflect current market conditions. Our suppliers are specially selected on their location portfolio and their ability to serve our clients.” Prices are based on data gathered by Platts, provider of energy information, and the business conforms to IATA recommendations for contracts
and business negotiations. Air Partner Fuel provides spot prices on request, offers allinclusive prices for simplistic contracting terms and negotiates special contracts for clients with precise volume needs. Additionally, the division actively participates in fuel tender processes with clients across all aviation sectors. Walker has more than eight years experience in fuel broking and his broker experience has spanned the European, African and Asian markets. Mark Briffa, coo, says: “Air Partner Fuel is a direct fit with Air Partner’s core business and supports the group’s strategy to offer a complete range of aviation products and services across a broad geographical area.” Other divisions include Air Partner Commercial Jets (aircraft broking), Air Partner Private Jets (broking and aircraft operating), Air Planner (flight planning) and Air Partner Freight (broking). Additionally, the Group offers emergency planning, flight logistics and travel agency services.
Broker boosts Imperial progress in inte Air charter broker William Gyarfas has developed a productive way to combine business and pleasure. He learns about the requirements and rules of different sports around the world and this furthers the global sports charter business of the New York-based Imperial Jets. “The United States tends to have a focus on American football, baseball and basketball but interest in soccer is growing and I’ve also enjoyed assimilating the requirements of rugby and cricket,” Gyarfas says. Gyarfas arranged charters for the most recent Ashes cricket confrontation between England and Australia and is now focusing on international events including the football World Cup in South Africa in 2010 and the Rugby World Cup in New Zealand in 2011, in addition to national sporting passions in the US. Imperial Jets will be donating up to US$2,000 per flight to the scholarship funds of university alumni chapters whose members use Imperial Jets services for private charter flights during the 2009 American football season. Gyarfas explains: “The arrangement applies to aircraft used for any game of any school throughout the season – high profile games, rivalry games, homecoming games, alumni weekends, and bowl games.”
Arrangements will be made for fans and alumni of universities to fly private charter at a cost which it says is comparable to first class commercial seats. It can also arrange ground transport, hotel rooms and catering. The donations will be based on the size of aircraft used for the trip – US$500 for a light jet, US$1,250 for a midsize jet, and US$2,000 for a heavy jet. “The agreement will be honored on each and every trip as they occur,” Gyarfas says. “There will be no limit to the number of donations an alumni chapter may receive.” Imperial Jets is also sponsoring the inaugural Sports Legends Challenge (SLC) poker tournament at the Atlantis Paradise Island in the Bahamas on September 14-17. Gyarfas says: “The SLC offers sports fans the opportunity to play side-by-side with legends such as Troy Aikman, Kareem Abdul-Jabbar and Mike Ditka. During the four days, all participants will compete in a wide range of tournaments for up to $10,000,000 in prize money. Amateur players will have the chance to improve their poker skills while being coached by 25 of the world’s best poker professionals.” Imperial Jets, which will secure aircraft from any location worldwide to the Bahamas, will donate a AUGUST 2009
In brief...broker news Air Partner reports in its latest management statement that: “The Board has taken action to significantly reduce costs at London Biggin Hill, sizing the business to meet the demands of the current market conditions. These cost savings will positively impact the next financial year, and further details will be provided at the year end results. Air Partner’s cash generation remains strong and the group continues to be profitable, debt free, and with a current cash position of £18m. The Board is confident that Air Partner is well positioned to weather the economic downturn that is currently universally impacting the entire sector.” In its report on interim results Air Partner adds: “In a tough market, the group’s experienced long term management, the fantastic team of professionals, strong cash position, zero debt position, track record of cashgeneration and dividend growth, are all precious assets. The board remains confident in the long term drivers and prospects.”
Aerodynamics launches aircraft management partnership
Residential lettings specialist launches new charter brokerage Terry Farthing (pictured), who has run a successful residential lettings business from London Stansted for more than a decade, is launching a new charter broker organisation. “The residential lettings company has built up a wealth of contacts and knowledge over the past 10 years but I have been additionally carrying out specific research and due diligence for more than six months,” Farthing says. Airport Residential Lettings, he adds, provides a 24-hour service and London Jet Charter will have the same philosophy. “We will give our clients whatever help they need to make their flight and stay enjoyable.”
rnational sports charter
American football features large in Imperial Jets’ programme portion of the proceeds from the flights to charity. The company, which also has international offices in Dubai, London and Tanzania, has installed a group of specialists from its New York and Tanzania offices to support private flyers attending the 2010 World Cup in South Africa. The World Cup, which takes place from June 11 to July 11, was highlighted in Charter Broker (June 2009)
AUGUST 2009
and will be held in nine different South African cities including Johannesburg, Cape Town, Port Elizabeth, Durban and Rustenburg. According to FIFA, three million tickets are being distributed. Sporting and other events will be highlighted on JetRequest.com, a new private jet charter information portal and deal finder. It is headed by Gyarfas and hosted by Imperial Jets.
Dutch charter broker Aerodynamics B.V. is diversifying to bring in additional revenue. “We are providing a CJ3 and a Citation Excel for the use of international businessmen while arranging charter for when they do not require the aircraft,” says md Henry van Monsjou. Aerodynamics B.V. broker the charters for the aircraft which are managed on the Jet Netherlands AOC. Van Monsjou adds: “This is a complementary business which enables us to use our existing resources and international charter broker expertise in a new direction. The arrangement is working well. Diversification makes sense especially in times of recession.”
French workers flown out of ‘flu-hit Mexico Chapman Freeborn France arranged an urgent evacuation charter for 40 French laboratory workers and their families from Mexico as the A/H1N1 outbreak reached its peak. The company reports: “A 167-seat MD83 was rapidly positioned to Mexico for the flight back to France, with fears that the ’flu crisis could have reached Level 6 – barring all entry and exit from the country.” Mexico hosted a two-day international meeting on Influenza A/H1N1 in July at which the director of the World Health Organization (WHO) reported on lessons learned from the deadly outbreak of the new pandemic. All Mexico’s 31 states and the capital have reported cases of the disease. Known as ‘swine ’flu’ A/H1N1 has caused health alerts throughout the world.
Charter Broker
broker news
ACI reports rising enquiries for Hajj Air Charter International (ACI), whose business catchment area spans the ‘four As” of Arabia, Africa, Asia and Asia Pacific, says it has received widespread enquiries for its Hajj programme for November 2009. Hajj, the pilgrimage to Mecca, is one of the greatest religious observances in Islam. “Historically, people made their pilgrimage to Hajj by camel caravan or ship. It was a dangerous trip that took months, sometimes even years,” Stuart Wheeler, ACI ceo, points out. “Today, the journey has changed dramatically with most pilgrims arriving via Jeddah airport.” There are two special Hajj terminals which are among the largest buildings by roof area in the world. “These days, providing Hajj movements from anywhere in the world is a crucial service. ACI is able to source the correct aircraft for locations all over the world,” Wheeler adds. ACI has successfully operated Hajj movements since 2003 from Iraq, Afghanistan, Morocco and the Maldives. “Hajj movements are commonly difficult to gain permissions for, but years of experience in securing these permissions from remote or hard to reach regions prove that ACI can provide a charter from any destination in the world.” ACI, a broker and leasing company based in
Dubai, UAE, has been in operation since 1994 and made a strategic move into aircraft management through its 100% owned subsidiary Jet Ops which operates and manages three Cessna 208As for a commercial tourism operation named Seawings. “We recently arranged a series of private jet charter flights for one of the biggest automobile giants in order to launch its newest car,” says Wheeler. ACI provided Boeing 737 aircraft for five return charter flights within the Middle East over a span of 10 days for this event. Passengers included the client’s management team, distributors and agents. “There was a great deal of troubleshooting required. However the entire programme was achieved under the client’s budget,” Wheeler adds.
The Hajj: most pilgrims now arrive via Jeddah airport
Stuart Wheeler: crucial service
Broker and clients donate wind pumps to improve Zambian lives Chapman Freeborn Airchartering and its clients have donated five wind pumps in support of a project run by U.K. charity, the Estelle Trust in Zambia. The trust’s target is to have ten wind pumps, manufactured in the Songhor workshop, fully installed and operational by the end of August. CF says: “The pumps are not only environmentally friendly but have a dramatic impact in the communities in which they have been installed. They help sustainable development projects in rural Zambia. Harnessing the power of the wind, clean water is pumped for irrigating subsistence farms and for the benefit of communal facilities such as schools, clinics and orphanages. Less than 50% of the rural population of Zambia has access to clean, sustainable water supplies.” Each individual wind pump project costs the Estelle Trust approximately $20,000 to manufacture and install.
10 Charter Broker
AUGUST 2009
In brief...broker news
Charter is moving forward says Greek ‘broker’s broker’ The private air charter market in Greece is developing but remains fragmented and complex for foreign companies to deal with, according to Miltos Mouzakis. Mouzakis, an air charter broker who runs Magna Aviation in Glyfada, Athens, has compiled an up-to-date analysis of all the aircraft registered and operating in the country. “There are 13 Greek AOCs plus three European AOCs whose companies either base an aircraft permanently in Athens, or the owner for his own reasons has Miltos Mouzakis is pictured with Capt. Zissis chosen to register the aircraft and Pehlevanoudis aboard an Aegean Airlines Learjet 60 select a European AOC, outside Greece,” he says. a Citation Sovereign (nine seats, compatible with quality, means Mouzakis says that Premier Swiss) and a Premier 1 (six seats, many international brokers conAviation Services is in the advanU.K.). The Greek charter tact Mouzakis. “Greece is a market ced stages of obtaining an AOC operators include Aegean for a broker’s broker and, although and that, as well as a dozen Greek Airlines, Aeroland, Airlift SA, I work much of the time directly charter operators, there are four Aviator SA, Bluebird Air, GainJet, with charter operators, internascheduled air carriers that also Intersalonica, Interjet SA, K2 tional brokers do source aircraft offer ad hoc charter. These are SmartJets, Life Line Aviation and through me for reasons of local Astra Airlines, Athens Airways, Olympic Aviation. knowledge on pricing and aircraft Skyexpress and Aegean Airlines. Mouzakis says: “Especially reliability and availability.” Capt. Zissis Pehlevanoudis is where charters into Greece are Operators in Greece are the chief pilot of Aegean Airlines, concerned operators based here having to work hard to retain which started initially as a vip face competition from internatheir business levels or seek to operator under the trade name tional providers. expand them. Aegean Aviation in 1992 and was “Charter operators from Competition from the first company to receive an Eastern European countries such international operators, looking AOC from the Hellenic Civil as Bulgaria and Serbia offer to augment business which has Aviation authorities. Mouzakis competitive prices and price has tailed off in western Europe in says: “This company now boasts a become much more of a factor in recessionary times, is increasing. very modern fleet of Airbuses and this time of global recession. But the country’s increasingly prohas kept a Learjet 60, captained There are also regular active stance on private aviation, by Capt. Pehlevanoudis only for requirements for aircraft that the plethora of islands that need the owner’s needs and for some ad might not be available in Greece.” helicopter services, and the hoc charter flights.” The complexity of the market, demand for management of The aircraft on a foreign AOC and the need in a recession to private jets are positive drivers of are a Falcon 900DX EASy Full advert 60 x(German), 190:Layoutobtain 1 3/6/09 09:56 Page the most competitive deal 1 business growth. configured for 14 seats
Revolution Air urges travelers to study options U.S. charter broker Revolution Air believes many travelers do not fully understand the relative advantages and differences of private charter and fractional membership. Ron Goldstein, president, explains: “For some individuals and organisations, long-term fractional ownership of a specific aircraft or chartering with larger companies may be in their best interest, and we encourage customers to choose that option if it fits their needs. For others, the flexibility offered by using a charter broker company like Revolution Air delivers a nimble and customised solution.” He adds: “To help customers determine if using charter aircraft is their best option for travel, Revolution Air has added new functionality to its website with an online quoting system.”
ProAir’s diesel appeals to cost-conscious clients Germany’s ProAir is marketing the cost-effective alternative of a Diamond DA-42 for one or two passengers. “The little twinengine Twin Star is dieselpowered and a cost-effective solution if your budget is a little smaller but the flexibility needs to be as good as provided by a business jet. For example, the flying time from Nuremberg to Hanover is only one hour and 20 minutes. The inclusion of the TKS de-icing system also enables flights during winter months.”
PROMOTING PROFESSIONAL STANDARDS IN AIR CHARTER BROKERAGE
WWW.BACA.ORG.UK
THE BALTIC AIR CHARTER ASSOCIATION AUGUST 2009
Charter Broker 11
broker news Private charter pays dividends in return The use of a ProAir chartered Fokker 100 paid off for a German women’s handball team which put the saved travel time to good use by dedicating it to training and recuperation. The team, which lost the initial itinerary match in Pamplona, Spain, recovered for the return match held only a few days later in Leipzig, Germany. This win secured them second place in the overall competition.
ACS brings fire fighting supertanker to Europe Air Charter Service (ACS) says it has been appointed agent for the largest and most advanced firefighting aircraft in the world. Tony Bauckham md says ACS has signed an exclusive contract with Evergreen International Aviation of Oregon, U.S., to become the European agent for its Boeing 747 supertanker. Since 2002, Evergreen International Aviation has been developing the supertanker which has been converted from a Boeing 747. “The aircraft’s drop capabilities, effectiveness, safety standards and operational flexibility are all revolutionary,”
says Bauckham. “It is the most advanced, targeted and largest capacity firefighting jet in the world. With a 77,600 litre (20,500 gallons) capacity, it is capable of carrying almost twice the amount of retardant as any other firefighting aircraft. It is also the only aircraft to have a variable pressure delivery system, and is able to perform segmented drops, meaning it can fight more than one fire in a single mission. It also has “loiter” capability enabling ground control to direct it to specific areas.” The supertanker also has the ability to respond quickly to a
variety of environmental and security threats. “Wide area decontamination, soil stabilisation, oil spill response, and radiation knockdown are all within the response capability of the supertanker,” Bauckham adds. The supertanker gained certification for operation after receiving its interim approval letter from the Interagency Air Tanker Board. It has also received its FAA supplemental type certificate and is now available to firefight during the 2009 season and beyond. Bauckham says the super-
CF predicts B777F will compete successfully with 747s Chapman Freeborn Airchartering successfully arranged the first ever charter on LAN Cargo’s new Boeing 777 freighter – and predicts the aircraft will provide big competition for 747 carriers. The B777F was only delivered to the Miamibased airline a few days prior to the inaugural charter flight. David Mejia, a CF cargo charter specialist, says: “We coordinated the movement of 18 tons of generator equipment from Toronto to Havana for the inaugural flight on behalf of a Canadian project freight forwarding company. CF representatives were present in Toronto to oversee the operation as cargo was loaded onto the aircraft for the first time, ahead of a punctual departure.” Mejia says the B777F, the latest addition to LAN Cargo’s fleet, is the only one of its type in the region, and represents the most modern, efficient and capable twin-engine freighter in the world. He adds: “It was a successful charter operation and performed exactly to schedule. This B777F is a valuable addition to the North American and Latin American market, and we expect it will be in high demand with our charter clients. On the inaugural flight we enjoyed feedback from the client stating that the level of commitment and fast response provided by CF was outstanding and made the difference in achieving what was deemed initially as ‘not achievable’.” LAN Cargo now operates two B777 freighters and has a further two aircraft on order which are expected to be delivered towards the end of 2010. 12 Charter Broker
Loading the new B777F in Toronto and, left, project cargo successfully loaded
Mejia says the B777F is suitable for all types of cargo – especially long bulky items. “This makes it a valuable option for our freight forwarder clients worldwide. It is early
days but I expect the B777F will be very much in demand soon. The airline is still evaluating the new aircraft’s capabilities and it will take some time for them to fully maximise its utilisation.” Mejia adds: “We are delighted to be the first company to successfully use the aircraft. It brings a better performance in regards of price per flying hour. The Boeing 777 is able to carry with two engines almost the same payload (100 tons) as a 747 using four engines. So it is big competition for 747 carriers.” AUGUST 2009
broker news
PrivateFly offers operators a ‘photo fit’
The supertanker shows its firefighting capabilities tanker has an 8:1 drop ratio compared to that of all other current firefighting aircraft and is the first of a fleet designed to accommodate the needs of U.S. and international private and public agencies. Bauckham, formerly evp of Evergreen International Airlines, was involved from the early stages in the development of the supertanker. He says: “After so much hard work from the Evergreen team it is exciting to see this project completed. ACS feels privileged to be able to offer this
aircraft within Europe to reduce the damage caused by costly forest fires. Europe has experienced several notable forest fires in the last few years, and the supertanker is a major addition to the continent’s firefighting capabilities.” He adds: “ACS currently works alongside many European governments when humanitarian aid is urgently needed after natural disasters, and is very pleased to have added the Boeing 747 Supertanker to its portfolio of services to those same governments.”
ProAir overcomes problems on schedule Germany’s ProAir prides itself on getting clients to and from tricky locations where using the established international airports can cause problems. It reports two recent successfully completed commissions. One involved the city of Rzeszow in the south east of Poland. “It is a significant economical and cultural centre but is hard to reach with a scheduled flight and involves an interchange connection and extensive travel time,” ProAir says. For this trip the 28 passengers used a Dornier 328 Jet for a day flight from Munich to Rzeszow. Separately the city of Varna in the north east of Bulgaria has an international airport but cannot be approached directly from Salzburg, Austria. “In order to meet a customer’s time schedule the passengers were flown to the Black Sea with a brand new Citation CJ2+,” ProAir reports.
Online broker PrivateFly is offering the marketing tool of 360 degree photos to aircraft operators and FBOs. “We provide all of the IT required for the aircraft operators and FBOs to easily integrate these images on their web sites,” says sales and marketing director Carol Cork. “PrivateFly clients can access these images to help them choose which aircraft to charter and which FBOs to use. As a trial, we have recently taken aircraft images for Bookajet, Blink and Hangar 8.” Cork stresses: “This David Scowsill, PrivateFly venture is not a revenue chairman, ex director of EasyJet stream, as it benefits and British Airways, with Carol everyone involved: the Cork and Adam Twidell. operator, the FBOs, PrivateFly and the private jet customers. As such, the cost is kept to a minimum.” Separately the Business and General Aviation Day held at Cambridge airport, UK, in June proved to be a successful networking day for the Baltic Air Charter Association (BACA) with PrivateFly among potential new members coming forward. Adam Twidell, ceo of PrivateFly, said BACA, a traditional industry organisation formed in 1949, still very much held value for a modern high tech brokering company. “I was really pleased to discover how forward thinking BACA is. Our clients expect both transparency and financial security and these industry issues are being addressed with ventures such as BACA’s proposed ‘escrow’ facility.” Bernard Keay, BACA’s deputy chairman, says the proposed ‘client account’ is similar to an escrow. “Just like purchasing a scheduled airline ticket, private jet customers should have financial protection. With a client account, the customer’s payment would be held by BACA as an independent third party, until the flight has been made. BACA sees this method of payment as a perfect solution in the current financial turmoil.”
Subscribe to Charter Broker at www.charterbroker.aero AUGUST 2009
ISSUE 2 AUGUST 2009
Air Partner plays cards cleverly in Dubai
747 faces new freight challenger
PLUS A ROUND-UP OF CARGO, PASSENGER AND BUSINESS AIR CHARTER NEWS
Charter Broker 13
ITALY FOCUS
Hard working brokers tough it out and see signs of business recovery Chapman Freeborn Airchartering’s recent decision to reopen its operations in Italy by establishing a new office in Turin brings into focus the country’s potential for air charter broker business. Brokers report that the market is tough but business is holding up comparatively well.
118Air: busy call centre 14 Charter Broker
Brokers operating in the Italian air charter market are reporting signs that demand is consolidating after the first six months of 2009 saw overall business levels in the sector drop by up to 20% or even 30%. The market may be tough but its potential and importance is confirmed by Chapman Freeborn Airchartering’s recent decision to reopen its operations in Italy by establishing a new office in Turin. Although brokers are having to work harder than ever, companies that have built up a diverse and loyal client base are reaping the rewards of their investment and foresight. Air Partner Italy, launched four years ago, has managed to preserve its position as one of the market leaders and contain the drop in business volumes to less than 10% this year compared with the same period last year. And Air Partner Italy is one of the big charter operators that expect rising business levels to reward their efforts as the global recession bottoms out. Airplanet Srl, which operates from its main base in Milan, as well as from Rome, Treviso, Bologna and Venice, is another broker that benefits from a spread of established national and international demand. Giovanni Barbitta, charter sales and operation manager, says: “We are one of the biggest brokers in Italy. We have executive business flights every day and we organise ad hoc charter flights every month. We also own the well-established Italian air ambulance company 118Air Spa. This means that we operate ambulance flights every day, sometimes two or three flights per day.” Airplanet also manages a large fleet of executive jets and turboprops and has charter flight agreements with major airline companies. Its executive business flights offering is based on light, midsize and heavy jet configurations ranging from four to 16 seats. “Smaller charter aircraft are configured for 18 to 50 seats and ad hoc charter can be provided for 100 to 212 passengers,” Barbitta adds. Airplanet manages charter sales and administration for aircraft including the CJ, CJ1, S/II, Excel, Phenom 100, BeechJet 400, Premier 1, Falcon 900, Dornier 328T and D328J. It has tried and tested relationships with dozens of operators that provide aircraft for private and ad hoc charters. “The past several months have seen market distortions due to the recession. Although we received more requests for the large ad hoc charter, only 10% to 20% resulted in bookings in the first half of this year. However we are seeing changes. Booking requests in the executive sector are rising. Our international business base means we receive requests from European tour operators and brokers as well as from those based in Italy and that means we benefit from interest in our services from many foreign countries.” Carlo Gioia, owner, says: “Obtaining an AOC will be the next step in our business development. There are a large number of clients AUGUST 2009
Air Partner’s Alessio Altamura, country manager Italy, at TAG Bologna. He is pictured in front of an aircraft operated by M.B.M. Aeroservices. Photo Massimo Rimoldi.
118Air provides a dedicated air ambulance service interested in buying and operating aircraft but they are waiting for the worst effects of the recession to subside. Realistically we are looking at 2010 for aircraft and fleet renewals to begin in earnest.” Airplanet has a wide variety of international clients in countries such as France, Switzerland and the US, many fostered through commercial agreements with foreign companies. Gioia says: “Our policy is to maintain commissions at a very competitive level so we can offer a very low price and high quality services. This brings in business, especially in difficult trading conditions as at present, and keeps us competitive and able to satisfy all client needs. It brings us repeat business as clients come back to us time and time again.” Barbitta points out that Airplanet is benefiting from its policy of responding positively to customer requirements and feedback after making a large financial investment in air ambulance services. “Airplanet clients requested help in this sector and we did our research. There were no dedicated companies in Italy providing the kind of service our clients wanted. Therefore we launched 118Air in December AUGUST 2009
2007 as a bespoke provider to meet their needs. It was a big investment in specialised equipment, new medical staff, ground transport ambulances, and the provision of high technology equipment aboard dedicated aircraft as well as fully equipping our operational centre.” The aircraft dedicated to 118Air’s round-the-clock service include a Citation S/II, a CJ, a King Air 200 and a Cheyenne. “All the aircraft are equipped with newest technology and all flights are made with our medical staff. Our business is local and international and we have performed a large number of long range ambulance flights involving journeys from the continents of North America and Africa to Italy.” The company receives requests for ambulance flights from other brokers, companies and operators as well as directly from clients. Barbitta says: “In times of recession, medical evacuation and air ambulance is a good sector to be in. We respond to client feedback in any case because that is our company philosophy but the diversification into this sector has benefited our business considerably.” Hard work, as well as rapid response to clients, is the only way to become successful as a charter broker in Italy, according to Barbitta. “You need a good marketing strategy, low price and high quality services with a commitment to chartering only new aircraft for executive charter. These are our goals: we are able to arrange flights, both executive and air ambulance, for clients in less than three hours.” Service satisfaction, he adds, is monitored at every stage from the initial flight request to the arrival at the destination. “New ideas are welcome and 118Air is just one of the successful projects resulting from feedback.” Air Partner Italy, launched four years ago, has also had to work hard to preserve its market share. Country manager Alessio Altamura says: “We are confident that we will keep our market share in 2010, and, although it will not be easy, we will do everything possible to maintain business levels. However we look forward with confidence to a better market environment in 2011. We expect our hard work will pay off as the recession gives way to a more normal business environment.” Charter Broker 15
Chapman Freeborn Airchartering: key team members in Italy are (l-r) Enrico Fantini, Anna Pizzagalli, Pierre Van Der Stichele, Matteo Forapani and Giuseppe D’Anna But Air Partner Italy is focusing on meeting the needs of its customers now as well as in the future. One initiative involves lessening the risk for tour operators needing to book long haul aircraft for destinations such as Sharm elSheikh in Egypt. The charter broker is providing specialists to book the required aircraft. The tour operators can then book only the number of seats that they are confident of selling. Altamura points out: “In the current climate operators are reluctant to book large aircraft and face the downside of empty seats. Air Partner can make seats on the same aircraft available to different operators according to their projected individual business levels. They can each block book achievable numbers of seats. Such pooled arrangements make great sense in recessionary times and our initiative has been welcomed in the market place.” Operators, facing less viable high prices and stop-overs if they look at smaller aircraft, are happy to rely on the pooled arrangements of a large broker. Air Partner Italy confirms that there has been a downsizing trend in the private jet sector. “The private jet community has always quite rightly wanted value for money but in this business climate price has become even more important. This means, effectively, that they are inclined to book Citation Is or Mustangs whereas before they would have chosen a Citation Bravo or Excel,” Altamura says. Firms providing trips as rewards or incentives for their staff are tending to choose cities closer to home in Europe rather than the Middle and Far East and the Americas. “The aircraft might represent up to 40% or 50% of the cost so organisers are taking this 16 Charter Broker
118Air in action route to savings. But incentives are still being booked and we are helping our clients achieve savings.” The secret of success for brokers in Italy is the same as anywhere else: hard work, the willingness to go the extra mile for the client and local knowledge. Altamura says that Air Partner Italy has gone to great lengths to build long-term relationships that stand the test of time. In a recession, Altamura points out, people and businesses are less willing to use small operators. There is a preference for large operators with the finances and stability to see out the recession. “Air Partner has gained from this.” Air Partner Italy’s business comes overwhelmingly from Italians and, though the company is based in Milan, there is a great deal of travel throughout the country to ensure that clients are looked after at their destination or on flights from different cities. In Italy it is important to appreciate, and cater for, differences in regional and cultural demands. The south has a particularly devout religious community and flights to the pilgrimage centre of Lourdes are booked regularly between April and October and on occasion at other times in the year. Charter
brokers must ensure that the needs of those in poor health are catered for including wheelchair users. “The aircraft and staff must be able to provide extra time and care for the passengers,” Altamura points out. In the north, where the business community demands speed and efficiency, the broker must also pay particular attention to reliability as well as price. “It would not do for people to be late for their convention.” Air Partner globally is also a company that likes to be diversified, launching for instance a separate fuel division (see news) and the Italian operation mirrors that philosophy. It started by undertaking GSA for an Italian airline providing marketing and sales services in Italy under the airline’s brand. Now it is extending that GSA service to the Slovakian airline Danube Wings. “We are bringing our knowledge of the local infrastructure, market and sales processes to bear so that we engender business for both companies and the airline benefits from not having to incur the expense of building up their own staff in Italy.” Air Partner Italy has diversified in four years to provide service over four main sectors: commercial and private jets, freight and GSA with ad hoc charter playing a key role. But, even in a recession, the company will be looking for more profitable niches to build into business over the next few years. Chapman Freeborn Airchartering’s new office in Turin expects to be kept busy on a number of fronts. Pierre Van Der Stichele, a member of the Chapman Freeborn Airchartering (Italia) Srl management team says: “While Chapman Freeborn has maintained a presence in Italy for a number of AUGUST 2009
years, it was felt that we needed to properly consolidate our position in the market and respond to the growing demand for our charter services. We are excited about the opportunities that this new office presents, and I’m confident that we have assembled the perfect team to move forward in all areas of our business – cargo, passenger and vip air charter.” Turin, Van Der Stichele points out, is in the heart of one of Italy’s major industrial regions. “Turin was considered the ideal location to situate Chapman Freeborn’s newest hub. The city is home to major Italian automotive and aerospace manufacturers, in addition to many other industries with cargo and passenger aircraft charter requirements.” Enrico Fantini, who is also involved in the management of the new company, has more than 25 years experience in the Italian freight forwarding and aviation industry. The cargo charter team is further strengthened with the addition of Matteo Forapani and Giuseppe D’Anna both with extensive forwarding and aviation backgrounds. They will focus on expanding its client base of freight forwarders and logistics providers in Italy. “The country has a significant manufacturing sector and still has a strong export industry – particularly in the project cargo sector,” Forapani says. Passenger charter operations will be overseen by Anna Pizzagalli, 37, who has been with Chapman Freeborn for over five years. “I’ve worked with a diverse client base ranging from multinational corporations to Serie A football teams,” she says. “Worldwide music tours and major events such as Milan Fashion Week will also ensure a high level of demand for the company’s vip charter services in Italy.” “The new office will work closely with Chapman Freeborn’s international offices to further strengthen the company’s cargo and passenger charter presence in Italy and across southern Europe,” says Van Der Stichele. “The company has 32 offices in 22 countries across five continents and coordinated more than 5,000 charters last year.”
Some of Italy’s charter operators are still expanding despite the economic slowdown. MustFly has chosen the Mustang for its fleet development. Pictured are Capt. Leo Vecchione, first officer Marco Valerio Di Stefano and Capt. Giulio Bernacchia. Italy is a market that has a great deal going for it – fashion, sport, industry and pilgrimages. However, like many other good markets in Europe, it needs the return of more confidence among businesses and tourists. Many predict that 2010 and 2011 will prove to be the years when a more buoyant economy will enable charter brokers to concentrate more on expansion and less on consolidation. CB
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Charter Broker 17
INDIA FOCUS
Brokers and operators seek partnerships to build business India is a market with vast potential, and both brokers and charter operators are working to develop links and joint ventures with international partners to maximise their business levels.
Premair: gets referrals from brokers 18 Charter Broker
Delhi-based Multi-Track Air Charters is seeking venture capital partners to launch a sister private charter operation to build business in time for an anticipated Indian economic upturn in autumn 2010. Capt. Viren Gupta, founder and ceo of the air charter broker launched 13 years ago, says India has vast potential for charter operations. “Multi-Track Air Charters intends to be ready to launch the new division in July or August ready for peak tourism demand from September so we are starting work on putting the finance and operational plans into place now. We are in a good position because we did a great deal of work just before the global economic downturn came along and it became sensible to postpone the diversification to a more favourable launch date.” The company’s priority for a new charter operator fleet is fixed wing. “The initial investment should be firstly in a small jet and then in a King Air although there is also a good market for a helicopter,” says Gupta. “Our detailed plans envisage an initial investment of US$7 million to US$15 million in a fleet that would operate under the established and well-known Multi-Track brand. However, we note that charter operators with aircraft under-used in Europe are interested in joint ventures and this may be an alternative or complementary way of growing business.” The Indian aviation sector has witnessed growth and investment since the government’s open sky policy began to take effect, but private charter is still very much in its infancy. Gupta says: “Multi-Track has built a broad base of business over the years but, obviously, the profit margins in charter are higher than those inherent in commission-based air charter brokering.” He points out that there is also an imbalance in demand for broker and charter services in the Indian market. There is a good demand from international brokers and charter operators for reliable broker connections within India. However, demand for flights out of India to foreign destinations is comparatively limited. “Outward travel hasn’t taken off in a big way and, although this might develop in time, the prospects for developing a charter business in India are much more attractive,” Gupta adds. “We benefit much more from link-ups with charter brokers in the United States, Europe and the Middle East. Areas of demand and enquiry include serving the needs of politicians and diplomats. Last year film star Michael Douglas visited India and there is a good corporate demand provided by international companies who wish to do business in many sectors of our economy.” Gupta, a former fighter pilot with civil aviation experience, says that the charter broker sector might benefit from an insistence on qualifications. “A knowledge of aircraft and their safe operating needs and procedures are obviously among key requirements but, at present, air charter brokers can enter the business without these basics.” AUGUST 2009
knowledge “ Local is essential to ensure a favourable trip
” New Delhi airport, which offers a modern terminal for airline passengers, plans to add FBO facilities to encourage growth of private charter business.
Rupesh Raghavan, ceo of Arc One Air Charters Pvt Ltd, says that brokers operating within India have to work hard to establish trust in the charter industry. “The key is transparency. The successful charter broker will need time to establish the confidence of the client in ways of working and corporate ethics.” But he adds: “We are looking for international charter brokers who need charter services in India for their clients and vice versa wherein we can provide a charter service in Viren Gupta: expansion plans India and we can also market charter services internationally through them.” Raghavan says brokers need to offer more transparency on the make and past track record of the aircraft as well as proper and professional handling of client requirements. “This goes a long way in making you a successful air charter broker in India. ” Arc One Air Charters is an offshoot of Travel Safe India which was established in 2004. Travel Safe India provides transport and logistics services for oil and gas related activities across India. “These activities encompass all possible transport of men and material to these remote areas by scheduled and non-scheduled air, road and rail transport resources,” Raghavan says. The company has ferried politicians to mark the gas discovery in the KG Basin, off the east coast of India and benefited from national elections in India. Several helicopters were utilised for campaigning. Raghavan confirms: “India is at a nascent stage as far as aviation is concerned in general. However, the size of the market is huge even at this stage. India presents unique challenges and has a lot of bottlenecks that curtail the growth. However, the good news is that they are being addressed by the government and the concerned authorities.” He adds: “The lack of dedicated charter airports and terminals in AUGUST 2009
key and busy airports such as Delhi and Mumbai takes the shine away from the charter services. The fact that runways need to be shared with scheduled passenger jets leads to unwanted and unavoidable delays at these busy airports. The lack of helipads in the city also leads to a lack of opportunities for helicopter charter services.” But there are opportunities to grow business. “These include religious charter service. Since most religious places are located in remote areas, getting to these places requires specialized helicopter charter. Also with the growth in infrastructure projects in remote areas of the country, air charter service are the only possible way for men and material to reach these places.” The government is addressing the issue of helicopter charter within cities and smaller airfields in remote areas, serviceable for charter companies, are being identified. “There is a good demand from businesses that are spread out geographically and need to travel to two or three destinations daily where there are no airline hubs and Arc One has responded by providing air charter services across several cities in India, especially in locations which have poor scheduled aircraft connectivity.” Raghavan adds: “We have introduced a frequent user card for individuals and corporates.” Premair, a helicopter charter company operating out of Indira Gandhi international airport in New Delhi, confirms that politics, religion and business are three sectors providing good demand. It operates a Bell 230 and a Bell 407. The company’s HS Waraich confirms: “Corporate leaders, tourists and people performing pilgrimages to religious sites located at high altitudes and areas difficult to access by conventional forms of transport provide strong demand.” India is a difficult market that requires good connections, so for the international broker without offices in India, a ‘broker’s broker’ appears to be essential. Multi-Track’s Gupta says: “I, of course, use brokers with good local knowledge for countries where I don’t have representation. Over the years such contacts build into a reciprocal network. India is a country where local knowledge is particularly essential to ensure a favourable trip for the client.” CB
Western European Jar Ops 1 AOC company available for investment, sale or lease opportunities For further details please send valid inquiries to box22@charterbroker.aero Charter Broker 19
industry news
Time-sensitive ad hoc cargoes gain Zurich-Oslo outlet Swiss WorldCargo’s new ZurichOslo scheduled service will also provide an ad hoc cargo facility. “We are a belly carrier and market the belly capacity of the Swiss fleet; nevertheless, we have a GSA agreement with Lufthansa Cargo Charter and we actively promote and offer the company’s services and solutions to our customer as part of our product portfolio,” says Swiss WorldCargo’s Silvia Cappelli. “Therefore we can offer ad hoc charter to Oslo too.” The airfreight division is now running two daily Airbus A319 flights that will offer two tonnes of cargo capacity on the route and strengthen Swiss WorldCargo’s position in the Scandinavian market. The ad hoc capacity will interest brokers with clients that need to quickly route time-sensitive cargoes. Urs Stulz, md area management Europe, says that Norway is essentially an exporter of raw materials and semiprocessed goods. It is rich in oil, hydro power, fish, forests and minerals and is one of the world’s major exporters of seafood, crude oil and shipping services with significant market shares in the light metals and ship equipment fields and many maritime services. “The after-sales services of these Norwegian industries require complementary timesensitive and high value cargo services. Our investment in our new Zurich-Oslo route highlights Swiss WorldCargo’s trademark focus on care intensive airfreight solutions,” Stulz adds. “We have a flown-as-planned track record within the airfreight industry for express and valuable consignments and are particularly well-equipped to meet the needs of a niche air cargo market like that of Norway.” 20 Charter Broker
Shannon airport is celebrating the prospect of offering full US CPB clearance
Shannon gears up for autumn pre-clearance business Shannon airport should be ready to pre-clear private charter aircraft for flights into the United States by September. “More than €20 million is being spent on the new pre-clearance facility which will have a separate processing area for general aviation,” says Joe Buckley, cargo and technical traffic development manager. We are getting a great reaction from general aviation with a lot of enquiries coming in to our handlers and directly to myself.” He adds: “Shannon will probably be the first airport in the world to have full US CBP preclearance for general aviation. The Canadian airports do not have this facility. A similar facility for general aviation is being developed in Aruba but I think that our facility will open first.” Air charter brokers including Julie Black of Chapman Freeborn Airchartering and Mark Green of Oxygen 4, and FBO providers such as Universal, have welcomed the pre-clearance arrangement as positive with advantages including the use of many more
entry airports in the US. The preclearance agreement includes customs, immigration and agricultural laws, as well as the screening of aircraft for radio-
Brendan O’Grady: receiving enquiries logical and nuclear threats. It means that private aircraft flying through Ireland may use CBP preclearance facilities to fly to any airport within the U.S., without having to stop at a pre-designated airport of entry for clearance of customs before continuing to their final destination. Finished facilities at Shannon
will include a passenger screening area, inspection area, postclearance passenger holding lounges, and secure and segregated baggage holding area and staff offices. Brendan O’Grady, md of Universal Aviation in Ireland, says: “Even with the business aviation pre-clearance start date being pushed back from the summer to the autumn, we’ve been fielding calls daily from operators throughout Europe and the Middle East who are interested in taking advantage of the time savings and convenience of this agreement. Operators from the Middle East, who are currently using other destinations as tech stops, have indicated they plan on using Shannon when preclearance goes into effect.” Pre-clearance operations from Dublin are scheduled for April or May 2010. Buckley says that U.S. CBP pre-clearance gives Shannon the opportunity to become the first “one-stop-shop” airport in Europe for transatlantic private and commercial aircraft.
Execujet enjoys high jet demand ExecuJet South Africa handled a record number of private jet movements during the inauguration of South Africa’s new president and the 19th World Economic Forum on Africa that took place in Cape Town. Over a five-day period, ExecuJet handled 28 international and 28 local movements at Lanseria international airport and 35 movements at OR Tambo International Airport. The majority of aircraft flying into Cape Town consisted of wide-body business jets – G-IVs, G-Vs and Global Express aircraft. AUGUST 2009
industry news
New airline looks for broker business The landing in Australia of Strategic’s flagship A330-200 marks the start of new ad hoc charter shipping arrangements for brokers. Michael James, executive director, confirms: “Referrals for charter will be sought from air charter brokers.” The A330-200 is the first aircraft of the inaugural fleet of Australia’s newest international charter airline to be delivered. James adds: “The introduction of the Strategic fleet to the market offers great opportunities for worldwide ACMI lease and contract charter arrangements. We hope to work with brokers, other major carriers and key corporate, mining, tourism and leisure entities for sporting, entertainment, incentive and group travel purposes.” The launch has its roots in the business generated
Dassault milestone Dassault Falcon has delivered its 2,000th Falcon, a 2000LX, to Koç Holding based in Istanbul.
PA-31 back on duty in Scandinavia
Strategic: A330-200 cabin comfort
when Strategic started to tender for long-term contract charter work four years ago. Strategic says it anticipates continued growth over the next 12 months and for employee numbers to double across its worldwide bases. It also expects several Airbus A320 aircraft to join the A330-200 over the next few months, with the official airline launch scheduled for Michael James: ad hoc bus av advert 175X124:Layout 1 6/2/09 September. 12:29 Page 1 charter plans
Sweden’s Eastair is operating a Piper Chieftain again. The PA-31, it says, is a reliable multiengine propeller aircraft with room for eight passengers wishing to travel within Scandinavia and beyond.
Titan acquires ski specialist
Cabin crew are kept busy
U.K. vip charter airline Titan Airways has purchased the Satellite Travel Group which has offered seat-only charter flights for more than 25 years. Titan Airways md Gene Willson says: “Through STG we will actively sell flights to popular ski airports such as Chambery, the gateway to the French Alps, as well as launching new destinations.”
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AUGUST 2009
Charter Broker 21
industry news
In brief...
Lufthansa’s in-house competition puts pressure on charter operators Charter operators are having to work even harder to win business from Lufthansa Cargo Charter Agency. “We will always charter the right aircraft for the job but, all things being equal, it makes sense to utilise an aircraft from the fleet of our parent company, the Lufthansa Cargo Group, whenever that aircraft is best for our clients,” says Heide Enfield, head of the agency’s global market development based in Kelsterbach, Germany. The agency’s md Christian Fink confirms: “We are chartering more freighters from our parent company as well as from Shenzen-based Jade in which Lufthansa has a 25 per cent stake.” Lufthansa Cargo has had to ground a number of MD-11Fs after a fall off in demand due to the global recession. But, on the positive side, Africa is providing more business. “Lufthansa Cargo and Jade crews are flying to Brazzaville, Congo, Khartoum and Sudan as well as Hong Kong, Singapore, New York and Chicago,” says Enfield. “We retain all the business benefits of being able to select from any available aircraft worldwide to meet out customers’ needs. There are special business opportunities in airfreighting equipment for concerts, works of art, exhibitions, or transporting racing cars. Despite the ‘group aircraft first’ policy we do need to use third party aircraft for much of our business.” Fink says the pooled logistical expertise of the Lufthansa Cargo Group can solve most ad hoc charter problems. “One client wanted to airfreight an intermediate shaft weighing 45 tonnes and measuring nine metres in length and two metres in height and breadth from Helsinki to Seoul. Given the weight of the shipment, the obvious answer would have been to use an Antonov 124, but that would
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Avjet Corporation has received approval to operate a BBJ under the FAA’s Part 135 regulations for both domestic and international charter travel. “With this approval, Avjet joins an elite handful of companies approved to operate BBJs for worldwide charter operations,” said Avjet chairman and ceo Marc Foulkrod.
Atlantsflug and Air Arctic join forces
A heavy problem solved cost-effectively have been a very expensive solution. Using one of the Lufthansa Cargo Group’s B747-400s proved a much more cost-effective alternative, although the weight and size of the cargo posed an even greater logistical challenge.” Lufthansa Cargo Heide Enfield: best Charter worked closely deal for client with Geodis Wilson Germany, the ABB shipping company and the German-Chinese freight airline Jade Cargo International to design a special cradle for the intermediate shaft on the basis of technical drawings.
Jet Charter Pool set to work with air charter brokers Jet Charter Pool (JCP), a USbased organisation that facilitates private aircraft hire sharing, is gearing up to work with charter brokers as well as charter operators. “Currently we only work with charter operators,” says president and founder Sam Chanana, “but we plan on introducing a service that will allow charter brokers, ground transport operators, caterers and hotels to quote their services for trips that are posted on JCP. This will allow our members to view travel packages and work directly with the service providers.” JCP members join with other
Avjet brings BBJ into worldwide service
Chanana: broker involvement users within their area that share the same flight requirements to reduce the costs of chartering a private jet. Chanana says: “The savings the members enjoy are
substantial and they get all the advantages that come with private jet travel.” JCP charges a membership fee of US$199 per month and then enables members to communicate openly on a safe, private network. “We can also use some member charter operators in Europe/Africa. We do not charge commissions or any fees related to posting or selling of trips on our site,” Chanana explains. “For the FIFA football World Cup we are working with some charter companies in South Africa to post availability and travel packages. ”
Atlantsflug and Air Arctic are combining forces and have high hopes that a twin engine Cessna 421C will win growing business in Greenland. Jón G Sigurdsson, Atlantsflug’s project manager, says the agreement with Air Arctic means the companies will operate nationally and internationally on the same EASA AOC.
Solid Air adds Challenger 850 Holland’s Solid Air has brought a Challenger 850 based at Eindhoven into service. The cabin is equipped with six beds, two lavatories, high-end stereo equipment with iPod connection, wireless internet, fax, X-box, two satcoms, Nespresso, oven grill, microwave and eight TV screens.
EAG expands its managed fleet Empire Aviation Group has expanded its Dubai-based managed fleet with the addition of a G450. The aircraft will join EAG’s mixed fleet of business jets which now comprises 12 aircraft – nine of which are offered to the charter market. The company expects the fleet to grow to 15 aircraft by the end of 2009 – one of the largest managed fleet of private jets in the region – as the new and preowned business jet sales pipeline remains healthy. AUGUST 2009
Would you like to join a solid, highly successful company which is growing even in the face of world economic adversity? Country Manager (worldwide): Air Charter Service is expanding rapidly and continues to search for the next opportunity to open new offices. We are looking for experienced brokers who believe that they have what it takes to open the next ACS international office. New operations will be given training and marketing support from the group headquarters and once profitable, new ACS office managers enter into a profit sharing scheme. You name the country and we will listen.
International charter broker Air Charter Service Plc enjoyed record profits last year even in the face of global economic difficulties. In the first 6 months of 2009 we have again seen a double digit growth both in terms of revenue and total charters performed when compared with the corresponding period in 2008 putting us in a strong position to continue pushing forward. Recognized as an ‘Outstanding Company’ with a 2 star rating in the Best Companies survey and consequently named in the Times 100 Best SME Companies to Work for in 2009, Air Charter Service rewards hardworking individuals with ongoing training, progression and excellent earning opportunities. With an infrastructure designed around supporting brokers in doing what they do best. Selling Charters.
Essential Skills: s ! PROVEN TRACK RECORD AND THOROUGH UNDERSTANDING OF THE CHARTER INDUSTRY s !BILITY TO NETWORK WITH PEOPLE AT ALL LEVELS s %XCEPTIONAL COMMUNICATION SKILLS s $RIVE AND DETERMINATION TO SUCCEED
Current Vacancies Executive Jet Charter Broker (Dubai): Our Middle Eastern Operation has expanded rapidly over the last 2 years and we are looking for experienced aviation professionals to join our existing team of 11.
Being an ACS broker is not easy. If you think you are up to the challenge contact us in total confidentiality to hear more:
careers@aircharter.co.uk
www.aircharter.co.uk
www.aircharterservice.com In order to strengthen our Essen/Muelheim based sales and operations team, we are looking for an experienced Customer Services Professional. Activities / Responsibilities: sell on-demand flights on our business charter prop and jet fleet prepare booked flights (handling, catering, services etc) Abilities / Requirements: minimum 5 years professional background in aviation, luxury travel industry and/or luxury hotel business distinctive communicative and organizing ability entrepreneurial skills with professional attitude team player self motivated able to work accurate, independent, pro-active German and English language is a must, additional languages an advantage
Position: Charter Sales and Flight Operations Professional Type: Fulltime
Please send your CV to sales@vhm.aero VHM Schul- und Charterflug GmbH & Co.KG Brunshofstraße 1 . D-45470 Mülheim/Ruhr . Phone: +49.208.99234-0
Career Opportunities
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www.vhm.aero
Next issue: October 2009 Final bookings: September 29
If you are looking for senior sales, operations or management staff, then you can reach every charter broker in Europe and the Middle East by advertising your vacancies here.
For details of our fully inclusive pricing, or if you have any questions at all, please call or email me
All adverts appear in the printed and digital editions of Charter Broker, and we can advise on the best advert size from your text.
Mark Ranger +44 (0) 1279 714509 mark@charterbroker.aero
AUGUST 2009
CHARTER BROKER 23