october
-november
2013
The execuTive Guide To
PrivaTe aviaTion a n d B u s i n e s s T r av e l
The private-aviation sector has recently come out of the most severe economic downturn in its history. After a decade of heady expansion, with the entry of many start-ups, what has emerged is a smaller, leaner and more client-focused industry. The remaining players have weathered the economic storm by steering their business models in more consumer-friendly directions. Firms that originated jet cards have simplified their programs. Fractional providers have created hybrid programs that offer the benefits of a company-managed fleet while eliminating long-term commitments. Jet manufacturers are building faster, more efficient, and ever-more comfortable business jets in the light-jet categories. Other providers are expanding fleet sizes, but focusing on the models that best suit their clients’ needs. One message is consistent across the industry: Private fliers are quickly returning to the skies again. The marketing cliché, “there’s never been a better time to fly,” has merit in today’s aviation market. While companies are reporting their busiest schedules in five years, the fact that aircraft supply still outweighs demand provides consumers with ready access to the best business jets in charter or fractional. Industry consolidation has also shaken out many wannabe providers. Those that remain have the business plans and financial mettle to inspire client confidence in their long-term futures.
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FLIGHT OPTIONS CLIENT-FOCUSED PROGRAMS, FINANCIAL STABILITY AND THE RIGHT AIRCRAFT HAVE LIFTED ANNUAL REVENUES BY 30 PERCENT FOR THE WORLD’S SECOND-LARGEST PRIVATE AIRCRAFT COMPANY. Nothing points to the success of a new business program more than rapid consumer acceptance. Within 12 months of being launched, Flight Options enrolled the 100th member of its Jet Membership Club. The program’s inherent flexibility and value, as well as access to Flight Options’ fleet of Embraer Phenom 300 and Nextant 400XT business jets, appeals to clients who do not want more than a three-year commitment. The world’s second-largest private aviation company recognizes that value is critical these days. Fractional clients can save an average of 19 percent on annual operating costs, while its JetPASS card is 30 percent less expensive per hour than competitors’ card programs.
Between the 400XT and Phenom 300, we have the best products in the super-light and light-jet categories.” CEO Michael J. Silvestro says Flight Options’ 30-percent revenue growth in 2012 was helped, in part, by a 104-percent rise in referrals from its client base. The Clevelandbased company also reported 70 percent growth in “conquest sales” or clients who exited competitive brands. “There has been a shift away from making long-term commitments,” says Silvestro, explaining the popularity of the Jet Membership Club. “But our customers and potential clients are still looking for flexibility and the right aircraft.”
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Clients are also seeking financial stability in an industry that has seen significant consolidation. Flight Options has reported an operating profit for four consecutive years and, for the second year in a row, Flight Options took more deliveries of new aircraft than any other private-aviation firm. “Our fleet modernization will continue as we add Phenom 300s, Nextant 400XTs, and Citation Xs,” says Silvestro. “We believe having the most advanced and right missionspecific aircraft for our clients is the best way to invest for the long term.” Flight Options has a contract for 100 of the best-in-class Phenom 300s, with an option to acquire 50 more. The clean-sheet Phenom 300 has the longest range in its category, a top speed of 518 mph and maximum cruising altitude of 45,000 feet, allowing it to fly over most turbulence. The seven-passenger light jet also has Wi-Fi and other amenities for comfort. Members access brand-new Phenom 300s in the Jet Membership Program after paying the one-time membership fee for blocks of hours. Early on, Flight Options recognized the value proposition of the Nextant 400XT, the world’s only remanufactured business jet. “By modifying the Hawker 400, Nextant was able to increase its range, gain 30 percent more efficiency and significantly lower operating costs,” says Silvestro. “Between the 400XT and Phenom 300, we have the best products in the super-light and light-jet categories.” The Nextant 400XT provides a significantly lower-cost entry point for fractional owners seeking a new business jet. Flight Options’ clients have been so quick to accept its value proposition that the company recently
added it to the Jet Membership Program. As with its two other programs, clients can book flights within North America, or to the Caribbean and Europe, with as little as 10 hours’ notice. “Clients see our programs’ details and tell us we ‘get it,’” says Silvestro. “That is because we see clients as owners of the company, rather than as people accessing our aircraft. We’ve gotten really good at anticipating the emerging trends, and then being proactive with programs that best meet our clients’ needs.”
A CULTURE OF SAFETY, THE AWARDS TO PROVE IT Flight Options was the first fractional provider to gain the highest Platinum Safety Rating from industry watchdog ARG/ US and has retained it for 12 consecutive years. Pilots, type-rated for specific aircraft, are among the most highly certified in the industry. Aircraft are maintained at five FAA Diamond Award-winning facilities. Its Operations Control Center, modeled on Houston’s NASA Control Center, assembles pilots, schedulers, dispatchers, and safety experts in front of central projection screens to plan and monitor flights. “We’ve ingrained safety into the core of our operations—from the maintenance teams to flight crews to dispatchers,” says Silvestro. “That advanced technology reflects exactly who we are.”
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877.703.2348 www.FlightOptions.com
BEST FLEET IN THE SKY. THREE WAYS TO BOARD.
JetPASS JET CARD
JET MEMBERSHIP CLUB
FRACTIONAL OWNERSHIP
25 hours. Never expires.
Use anytime over 36 months.
50 hours per year. 5 years.
NO ASSET PURCHASE OR MANAGEMENT FEES ACCESS TO HAWKER 400XP, CITATION X, LEGACY 600®
NO ASSET PURCHASE OR MANAGEMENT FEES ACCESS TO PHENOM 300®, NEXTANT 400XT™
ACCESS TO THE LOWEST ALL-IN HOURLY RATES ACCESS TO NEXTANT 400XT, PHENOM 300®, CITATION X, LEGACY 600®
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We do more than match the right aircraft to your mission. We match the right program to your needs with three powerful options. A jet card that joins the low rates of charter with the safety and consistency of ownership. A membership club that links the benefits of fractional ownership and the flexibility of a jet card. And fractional ownership that gives you outright interest in a specific plane. Which program is right for you?
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Membership
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877.703.2348 • flightoptions.com
Flight Options, JetPASS and the Flight Options logo are trademarks or registered trademarks of Flight Options LLC. Phenom 300® and Legacy 600® are registered trademarks of Embraer. Nextant Aerospace®, Nextant 400XT™ and the Nextant Aerospace logo are trademarks or registered trademarks of Nextant Aerospace, LLC and/or its affiliates.
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HONDAJET THE REVOLUTIONARY DESIGN IS NOT ONLY FASTER AND MORE FUELEFFICIENT THAN ANY OTHER LIGHT JET, BUT ITS ERGONOMICS AND VALUE COULD CREATE A NEW CLASS OF OWNER-PILOTS. Judging from its best-in-class numbers, the new HondaJet is business aviation’s first legitimate design breakthrough in the light-jet category in many years. Its top cruise speed of 420 knots is 10 percent faster than any other aircraft in its class. At the same time, it delivers up to 17 percent better fuel efficiency than competitive aircraft. Add to that the largest-inclass cabin, 66 cubic feet of cargo space, 1180-nautical mile range, and a landing distance of less than 3,000 feet, and the HondaJet becomes a legitimate game-changer. “I envisioned great potential for an airplane that could have both high fuel efficiency and high speed, without sacrificing cabin volume and luggage space,” says Michimasa Fujino, president and CEO of Honda Aircraft Company. “I knew if we could achieve these, users of light jets would greatly increase.” Fujino is a passionate believer in the growth of business aviation through smart design. After presenting his ideas for the HondaJet in 1997, Fujino’s dreams to create a light jet that would advance aviation are now nearing completion. The HondaJet design has been tested, patented and proven, and Honda Aircraft Company now has a state-of-the-art manufacturing facility in Greensboro, North Carolina. Honda Aircraft’s complex includes a global R&D center, and personnel from more than 40 countries dedicated to the engineering and manufacturing of the new aircraft. It will open a new dedicated customer service facility later this year. The manufacturer passed another testing milestone in May when its fifth FAA-conforming jet took its first
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flight. The blue HondaJet, wowing crowds at last summer’s EAA AirVenture 2013, will be used for testing the first production cabin. “The program is steadily approaching the final phases of flight testing, and our manufacturing has now transitioned to the production of customer aircraft,” says Fujino. Clients are confident knowing they are partnering with Honda. Not only does the Japanese corporation offer financial stability, but the knowledge that it is committed to creating high-quality aircraft with a good value quotient. “My hope with the HondaJet is to get more people into aviation by bringing new value to the market,” says Fujino.
My hope with the HondaJet is to get more people into aviation by bringing new value to the market.” The value proposition included making the cockpit more intuitive, ergonomic and user-friendly than other business jets on the market. HondaJet partnered with Garmin in designing the G3000 avionics suite. The system enhances navigation, flight planning and control. “If the jet is easy to fly, people will want to fly it themselves,” says Fujino. HondaJet also pioneered the patented Over-The-Wing Engine Mount (OTWEM) design, calling on more than 20 years of R&D to perfect the innovative concept. Taking the engine over the wing is effectively a paradigm shift for business aviation,
creating a quieter, more spacious cabin while dramatically increasing fuel efficiency. HondaJet also uses a carbon-fiber composite fuselage that is significantly lighter and less prone to long-term fatigue. Naturallaminar flow technology in the main wing airfoil and fuselage nose also reduces drag, helping to deliver HondaJet’s best-in-class speed. HondaJet expects FAA certification by the end of 2014.
CREATING A BEST-INCLASS CABIN WHERE EVERY INCH COUNTS The HondaJet boasts the fastest cruise speed, highest altitude, and best fuel efficiency in its class. But HondaJet’s engineers were also meticulous about gaining every possible inch of interior space to create the largest light-jet cabin. So much so that they made the distance from the back of one passenger seat to another at 86 inches—the difference between a comfortable flight and knocking knees with another passenger. The designers were equally adamant about designing the largest cargo hold in its class. Features like a private lavatory, four multi-axis seats (a five-seat configuration is optional), and a whisper-quiet interior raise the HondaJet’s comfort factor to the top of its category.
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888.453.5937 www.HondaJet.com
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SENTIENT THE INVENTOR OF THE JET CARD, REMAINING TRUE TO ITS ORIGINAL VISION, HAS SEEN DOUBLE-DIGIT GROWTH IN NEW CLIENTS. Rarely does a business model based on a single product survive for more than a decade. But Sentient, which launched private aviation’s first jet card in 1999, has proven that simplicity, transparency, and client-focused terms will not only keep the concept alive, but thrive as the market returns to more normalized activity. Sentient recently reported 15 percent year-over-year growth in new clients. “This has been our biggest flying summer in five years,” says Andrew Collins, president of Sentient Jet. “We’ve sold 11,000 hours from May through August, equating to about 450 jet cards. That brings us to more than 4,000 clients.” Sentient recently announced a more simplified card program. The SJ25-Hour Card, starting at $123,100, allows clients to purchase 25 hours of flight time on a specific choice of jet size (Light, Mid, Super-Mid and Heavy) and age class (Preferred or Select). The program has a oneyear lock on hourly rates and fuel surcharges as well as 10- to 15-percent discounts on qualifying travel. No interchange fees between aircraft types are written into the program, along with 10-hour windows for bookings and cancellations. Sentient’s Jet Charter program also provides on-demand access to thousands of aircraft ranging from turbo-props to transoceanic business jets. Sentient flies to thousands of destinations in the US, Canada, Mexico, Bermuda and the Caribbean. Sentient’s recent acquisition by Directional Aviation Capital also gives it a stronger financial foundation for expansion. But from its inception, Sentient has distinguished itself from regional and national charter aggregators by its culture of safety. Sentient
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has an independent safety advisory board comprising experts like Dave Thomas, former director of accident investigations for the FAA, and Greg Phillips, former NTSB lead investigator, as well as other industry experts. The advisors created Sentient’s nine-point safety protocol, encompassing every facet of a flight, from reviewing millions of pieces of data after booking to flight reviews 24 hours before a scheduled flight. The nine points also include a “SentientCertified” process that drills deep into the operational history of potential aircraft partners and their employees. Only those that pass the stringent vetting process will become part of the Sentient fleet. “We adopted industry best practices and took it a step further,” says Collins. “In our daily flight reviews, lasting from two to eight hours, we look at every aspect of an upcoming flight—from weather risks to a client’s food allergies. Each flight generates service reports about potential issues, and senior managers are tasked with making sure the issues are resolved.”
Our goal is to optimize our clients’ experience to the smallest detail.” Collins says Sentient’s 24/7 command center sometimes gets late-night calls from managers. “We want to know what is being done to resolve outstanding issues and we expect results,” he says. “Our goal is to optimize our clients’ experience to the smallest detail.” The commitment to maintaining impeccable service standards includes
hiring personnel from the Ritz Carlton, Four Seasons and Peninsula Hotel. The elite dovetails nicely with the caliber of its partners. Montage Residences, Timber Resorts, PGA Tour and other premier brands provide Jet Card members access to exclusive destinations and one-of-akind experiences. “We’ve designed our partnerships with value-added benefits,” says Collins. “Having partners at the top of their industries has enhanced our reputation as a premier aviation provider with a national reach.”
GREEN MEANS GO, BUT GETTING THERE INVOLVES A SAFETY GAUNTLET Sentient’s nine-point safety program is one of private aviation’s most comprehensive and rigorouos safety platforms. Culling through 100 million records on all flight variables, Sentient’s proprietary software red-flags potential issues. “We access real-time data on weather conditions, airports and aircraft, and deal with other factors generated in our certified trip reports,” says Collins. Each flight moves into a color-coded system. Green means proceed. A yellow designation alerts the chief safety officer to an issue that needs resolution. “If it’s red, we won’t fly, even if it means inconveniencing a client,” says Collins. “We are serious about safety. We’ve built it into every level of our organization.”
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866.602.0051 www.Sentient.com
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The Sentient Jet Card is a program of Sentient Jet, LLC (“Sentient�). Sentient arranges flights on behalf of jet card clients with FAR Part 135 direct air carriers that exercise full operational control of charter flights at all times. Flights will be operated by FAR Part 135 direct air carriers that have been certified to provide service for Sentient jet card clients and that meet all FAA safety standards and additional safety standards established by Sentient. (Refer to www.sentient.com/standards for details.)
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HELIFLITE FIFTEEN YEARS AFTER LAUNCHING THE WORLD’S FIRST FRACTIONAL HELICOPTER BUSINESS, HELIFLITE CONTINUES TO REDEFINE VIP HELICOPTER TRAVEL. When HeliFlite launched operations in the New York metro area in 1998, it became the world’s first fractional provider in the helicopter space. Now, as it moves toward its 15th anniversary, HeliFlite is private aviation’s poster child of a successful company that evolved, but is still faithful to its original cultural cornerstones—operational safety and VIP service. HeliFlite’s founders realized there was an unserved market for high-networth individuals and corporate clients seeking the safest, fastest way to travel in a 250-mile radius from Manhattan. Five years after its fractional business took off, HeliFlite started its 25-hour HeliCard program and offered ondemand charter. Most operators have only one or two cabin-class helicopters, making HeliFlite the largest fleet provider of twin-engine helicopters in the region.
We employ pilots at the top of their careers.” Leaving from any of the three helipads in Manhattan, a client can meet a business jet in Teterboro in eight minutes, drop into a “non-airport landing” like a private estate in Newport in 50 minutes, attend a business meeting in Washington, D.C. in 90 minutes, or tee off from the Trump National Golf Club in 15 minutes. The fleet size also allows multiple trips to be scheduled on the same day. HeliFlite’s fleet has grown well beyond its first Bell 430 helicopter to four Bell 430s and three Sikorsky S-76s operating from its base at the Newark International Airport in
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Newark, New Jersey. The Bell 430 and Sikorsky S-76 are category-A twin-engine helicopters—considered the most comfortable and reliable in their respective classes—with Electronic Flight Instrumentation System (EFIS) and GPS for precise navigation in any weather. Each HeliFlite flight has two pilots. Captains average more than 7,000 hours of flight time, while the co-pilots average 2,000 hours. The FAA requirement for captains is only 500 hours. “We employ pilots at the top of their careers,” says Frank Lazzarini, HeliFlite’s Director of Operations. “They’ve demonstrated their abilities, either in a Fortune 500 flight department or with a distinguished career in the military. The average tenure is five years, but many have been with us for 10 years.” HeliFlite’s maintenance staff is as fully vetted as its pilots. Chief Maintenance Officer Dan Prince was formerly maintenance supervisor for Marine One, and ensures that HeliFlite’s fleet is as impeccably maintained as the presidential helicopter. Prince’s team members are all Airframe and Powerplant certified. In nearly 15 years of operation, the company has never had an accident or received a fine for safety violations. The recovery of Manhattan’s financial services industry increased demand which spawned fleet expansion in 2012. The larger fleet has, in turn, resulted in an acceleration of growth driven by the expanded availability of seven ships. Its fractional business remains solid but the real growth has come in its HeliCard business. “Typically, a client comes to us as a “one-off” charter client. Once they experience the quality and convenience of our service, they often become a HeliCard client and utilize our services for their business
and personal travel whether its for a weekend in the Hamptons’ or a key business meeting in Philadelphia.” Carlson expects HeliFlite’s business model and the commitment of its professionals to continue to support its long-term success. “I’ve never seen an organization where its professionals are as completely committed to the ideals of the company, which in this case, is ‘Safety First’. Safety is top of mind in all we do and our professionals live it every day.” A CULTURE OF SAFETY THAT SHAPES THE FABRIC OF DAILY OPERATIONS HeliFlite has not only remained accident free in its 15 yeas of operation, but it has never been fined for safety violations. Its successive ARG/US Platinum ratings and Wyvern recommendations are the highest possible ratings. “Their annual audits drill deep into our records, safety management systems, and hiring processes,” says Frank Lazzarini, Director of Operations. “They make sure we’re using best practices on a dayto-day basis. ” Clients also send their own experts to assess operations. “They’ll spend days going through records before they put their chairman on a flight,” says Kurt Carlson, CEO. “What they find out is that nobody cuts corners here. Safety is more than lip service. It defines us as a company.”
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877.FLY.HELI info@heliflite.com www.HeliFlite.com
A DECISION TO FLY THE BEST
ARG/US Platinum WYVERN recommended
8 7 7 - F L Y- H E L I INFO@HELIFLITE.COM W W W. H E L I F L I T E . C O M
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CESSNA CESSNA’S LINE OF CITATION JETS CONTINUE TO LEAD BUSINESS AVIATION WITH NEXT-GENERATION CAPABILITIES AND SUPPORT FROM A GLOBAL SERVICE NETWORK Cessna continues to stay at the forefront of business aviation with the rollout of four new business jets. The world’s largest aircraft manufacturer had a busy year in 2012, with the production of 571 new aircraft, including 181 Citation business jets. This year Cessna moved ahead with its Citation X and Citation M2 business jets, which took their first production flights last summer as they both progress towards certification. Cessna also expects to certify its luxurious new Citation Sovereign during this quarter, while the prototype of the next-generation Citation Latitude is on schedule to be flown in the first quarter of next year. The 9- to 12-seat Sovereign, with a 3,000-mile range and 458-ktas cruise speed, promises to raise comfort and performance standards in the midsized category. “The new cabin management system is a significant upgrade and big hit with customers,” says Brad Thress, Cessna Senior Vice President, Business Jets. “They also love the new interior. The wider seats are designed for maximum in-flight comfort.”
The new cabin management system is a significant upgrade, not to mention a big hit with customers.” Rather than relying on existing seat-frame designs, Cessna’s interior engineers came up with a fresh, ergonomic design, with armrests that stow out of the way, and optional lumbar supports and footrests. The designers also added a refreshment center in
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beautifully crafted cabinetry, and the aft lavatory is so large it can double as a changing room. Cessna’s Clairity Cabin Management System, accessed via touch-screen monitors at the seats, seamlessly integrates smartphones, tablets, and MP3 players with the cabin entertainment system. The technological advances continue in the cockpit, where Cessna’s Intrinizic Flight Deck powered by Garmin G5000 avionics offers exceptional situational awareness and touch-screen control. “Pilots like the split-screen options for the displays and the reduced workload that comes with auto-throttles,” says Thress. Cessna also considered its clients’ needs with the “Sovereign Shield,” a service program that covers costs for all scheduled maintenance and parts for the first five years or 1,500 hours. The program virtually eliminates maintenance-related operating costs during that period. Owners, for instance, can save more than $3,500 on a 2,000-nm trip compared to competitive business jets. The Citation Latitude, the cleansheet 7- to 9-passenger business jet, is expected to be a legitimate game-changer in the midsize category. With a range of 2,500 miles, maximum cruise speed of 440 ktas, and takeoff distance of 4,030 feet, the Latitude has best-in-class operational capabilities. But the most significant statistics are in the cabin, with 6-foot headroom, 77-inch width and 22-foot length. Cessna engineers designed an all-new fuselage to create the most open, sophisticated cabin in its class. The Latitude will also have one of the best avionics suites in private aviation. “We know operators will be
impressed with the Latitude’s Garmin G5000 avionics and advanced performance,” says Kriya Shortt, Cessna Senior Vice President of Sales. “Passengers will also appreciate the enhanced cabin controls and the latest in connectivity capabilities. The Latitude is built to impress and engineered to lead.”
CITATION: A GLOBAL SERVICE INFRASTRUCTURE THAT RUNS DEEP Cessna’s global service network includes 15 Cessnaowned Citation Service Centers, 39 authorized Citation Service Facilities and more than 300 Cessna-Authorized Propeller Service centers, offering a full spectrum, from maintenance through refurbishments. But service runs deep as well. Each Citation owner has a dedicated Field Service Engineer (FSE) who lives near the aircraft’s base. As backup, in-depth technical support is available on a 24/7 hotline. Cessna also set up Service Direct, a mobile repair service for clients anywhere in the world. Citation’s ProAdvantage programs also offer a smart way to curb maintenance costs. With precise maintenance scheduling, owners gain price protections, operational efficiencies, and higher values for their aircraft.
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800.4-CESSNA www.Cessna.com
CESSNA CITATION:
THE WORLD’S MOST DESIRED BUSINESS JET
CITATION SOVEREIGN:
A NEW STANDARD IN CORPORATE TRAVEL FOR LEADERS EVERYWHERE • Range increased to 3,000 nm • The most comfortable cabin in its class • World’s most advanced and intuitive avionics suite — Garmin® G5000TM • Innovative auto throttles that reduce pilot workload • Advanced aerodynamic winglets for increased efficiency • Five-year all-inclusive maintenance package that delivers the lowest operating cost in its class
LEARN MORE ABOUT THE SOVEREIGN AT CESSNA .COM