worth private aviation october 2014

É2014 has been a strong year for business aviation, following several years of moderate gains by the industry’s leading players. Some providers are reporting record quarterly profi ts, while others are seeing

annual sales approaching pre-downturn levels. Several trends have emerged since the downturn. The full-fractional ownership model remains strong. But

some providers have created a hybrid that combines company-owned fl eets with far less expensive jet-card-style memberships. This new business model keeps fl eet maintenance and pilot training in-house, maximizing control over safety and operations, with lower entry costs and no long-term investments for the consumer.

Business aviation has also entered an exciting era of aircraft design. The next 12 months will see new launches across the board, from light jets to transoceanic business liners. The new aircraft promise to set records for speed, range and fuel e ciency, and have larger, more luxurious cabins.

Another trend has been the increase in value-added services. Recognizing that high net worth fl yers like to mix business and pleasure, most private aviation fi rms are increasing partnerships with fi ve-star resorts, jewelers, merchants, restaurants and other high-end services. These benefi ts, most providers believe, are an increasingly important part of a full-featured package to attract long-term clients.

For fl yers, private aviation is now more value-driven than ever, with increasing benefi ts.

{ O C T O B E R - N O V E M B E R 2 0 1 4 }

{ SPECIAL ADVERTISING SECTION }

T H E E X E C U T I V E G U I D E T O

PRIVATE AVIATIONA N D B U S I N E S S T R A V E L

Private_Aviation.indd 99 9/18/14 4:47 PM

Now the third-largest independent private aviation company in the US, XOJet has seen record profits in the last year on consistent quarterly growth. The creator of the industry’s most consumer-friendly, on-demand charter model expects to report a 15-20% increase in profits for the year, while adding more than 50 new members each quarter.

Much of the reason for its heady growth since its start in 2006 was the result of a strategic $650 million investment in a fleet of Challenger 300 and Citation X aircraft as well as an infrastructure shaped by the industry’s best practices in safety and customer service.

But XOJet has also developed a unique business model that puts the client’s interests first. Its new branding campaign boils its mission down to two words: Take Command. “We’re not in the business of selling airplanes,” says Bradley Stewart, CEO. “Our mission is to be the service pro-vider of choice for our clients. Frankly, everything we do is for our customers to be in charge of their flying habits.”

When it launched eight years ago, XOJet created an unusual business model that fell between fractional ownership and traditional charter. Operating its own fleet of Chal-lenger 300s and Citation Xs—the jet of choice for Fortune 500 flight

departments—gave it direct control over safety, maintenance and staff training. But its membership-fee structure, starting at $200,000, intro-duced transparency to a market used to rigid practices and hidden fees.

XOJet’s Preferred Access program now offers the most client-friendly terms in private aviation: 365-day on-demand availability, even on peak travel days, with as little as 48 hours’ notice; no penalties for moving be-tween jet types; and a no-questions-asked refund on balances, if a client leaves the program.

But members rarely do: XOJet has a 95% retention rate, and new members are typically experienced travelers coming from other aviation programs. The company includes business-friendly features like free WiFi across its fleet (the first in the industry to do so) as well as com-plimentary catering on every flight. XOJet has even added a 4% rebate on flights booked through its Preferred Access program.

“People lose money in private aviation by buying something they don’t need,” says Stewart. “That might be a plane that is too big, or paying round-trip when you only need a one-way, or traveling at a peak time when you could delay the trip for significant savings. We do everything to find the most efficient way to fly.”

That is where the “Take Command” culture comes into play. XOJet’s Advisors research multiple options on each flight, often delivering signifi-cant cost savings, while allowing the client the final choice.

“ ‘Take Command’ isn’t just a clever tagline,” says Stewart. “It’s an internal

message to our staff. I believe that we have the most aggressive, obses-sive and client-focused mindset in the industry. Hundreds of pilots and support staff are empowered to make flights more enjoyable for our clients any way they can.”

Beyond stellar customer service, XOJet has also instituted safety protocols based on the US Air Force’s best practices. XOJet has the highest ratings from private-aviation watch-dogs like ARG/US and Wyvern. “Our standards far exceed those required by the FAA,” says Stewart. “It’s fair to say we maintain the most aggressive safety standards in the industry.”

SPECIAL ADVERTIS ING SECTION

BESPOKE SOLUTIONS FOR INDIVIDUAL NEEDS

XOJet’s Elite Access program has become a favorite among travelers with uncertain schedules. Providing guaranteed jet availability with 12 hours’ notice, its transparent hourly rates include fees, taxes, fuel and catering. Its new Enterprise program is popular with Fortune 500 companies and other leaders in fi nance, technology, entertainment and media. XOJet works closely with each com-pany, devising specifi c plans to meet unique scheduling needs.

Its Preferred Charter partners also supplement XOJet’s super midsized fl eet, with a choice of 900 business jets, from Hawker light jets to Gulfstream V aircraft.

Our programs allow customers

to take charge of their fl ying habits. ”

T H E E X E C U T I V E G U I D E T O P R I V A T E A V I A T I O N A N D B U S I N E S S T R A V E L

WHERE THE COMPANY TAGLINE, “TAKE COMMAND,” DEFINES A NEW WAY OF DOING BUSINESS

ÉXOJet

É C O N TA C T877.599.6538www.XOJet.com


As it marks its 15th anniversary, Sentient Jet continues to see acceler-ated growth in its iconic Jet Card program. The world’s largest independent Jet Card provider sold 32,000 hours last year, or the equiva-lent of more than 1,300 25-Hour Jet Cards. The upward trajectory contin-ues to rise, with a 40% increase in Jet Card sales for the first half of 2014.

The Directional Aviation company reported its healthiest first half-year in six years. Sentient saw $110 mil-lion in total sales through June 2014 and had back-to-back $20 million sales during the months of May and June. “We’re just a chip shot away from being back to peak levels,” says Andrew Collins, Sentient president. “Our June volume was very similar to pre-2008 activity.”

Sentient created the Jet Card concept in 1999, and has since led the market with a business model that combines flexible terms, impec-cable service and a relentless focus on safety. Collins says that savvy travelers understand the need for guaranteed solutions in air travel as available supply tightens.

“Our traditional mix of Jet Card sales includes about a third new cardholders,” says Collins. “That is now 40%. What that tells me is that we’re seeing new entrants to private aviation and people leaving other

programs. They obviously see some-thing of value in Sentient.”

Sentient’s comprehensive value proposition includes flexible, trans-parent terms that allow Cardholders to book or cancel a flight with as little as ten hours’ notice and move between four aircraft types with no interchange fees. Its popular SJ25-Hour Card, starting at $124,825, allows specific aircraft choices (Light, Mid, Super-Mid and Heavy) and age class (Preferred or Select). Clients can also gain 10 to 15% discounts on qualifying travel.

Hourly rates are locked in for 12 months. “That includes any fuel charges,” says Collins. “Many of our competitors levy a floating fuel surcharge. We also don’t force you into a specific aircraft type. Some competitors have a 40% surcharge for changing aircraft types.”

A critical difference between Sentient and competitors is its safety infrastructure. Sentient’s mission is to exceed the industry’s best practices. The company formed the industry’s first independent safety advisory board, comprised of experts like Tom Haueter, former Director of the NTSB Office of Aviation Safety, and Greg Philips, former NTSB lead investigator, among other authorities from commercial aviation.

The board devised Sentient’s rigor-ous safety protocol that highlights every facet of a flight, researching millions of pieces of data after the initial booking to flight reviews 24 hours before the scheduled flight. “Our daily flight reviews, lasting from two to eight hours, look at every aspect of an upcoming flight—from

weather problems to a client’s food allergies,” says Collins. “Every flight has a service report about potential issues. Our senior managers are tasked with making sure those issues are resolved.”

Sentient also retains an in-house Chief Safety Officer, a role that is unique in private aviation, to have final determination over whether a flight should be delayed or cancelled, even if it inconveniences a client. Sentient also works with only the top 20% of the nation’s Part 135 charter operators. “We’re very serious about safety,” says Collins. “It is built into every level of our organization.”


THE SENTIENT JET CARD

Sentient’s partnership with elite hotels, resorts, wine merchants and other purveyors of the good life is another compelling feature of its Jet Card program. The company recently unveiled its second annual “Cardholder Benefi ts Guide,” which doubled the number of exclusive partners. The list includes retail icons like Oscar de la Renta; transportation partners Hertz; and hotel and re-sort partners like Montage Hotels & Resorts, The Little Nell and The Mark Hotel.

“We’re very selective about our partners,” says Collins. “But these partnerships amount to thousands of dollars in benefi ts for our Cardholders.”

We’re just a chip shot away

from being back to peak levels.”


AFTER 15 YEARS, THE INVENTOR OF THE JET CARD RETAINS ITS LEADERSHIP POSITION

ÉSENTIENT JET

ÉC O N TA C T

866.643.0093 www.sentient.com


Since its launch in August 2013, Wheels Up has become a signifi-cant player in the private aviation industry. The start-up, which has raised more than $75 million from over 300 individuals, employs a membership-based business model that greatly reduces the up-front investment needed to fly privately.

Created and led by Kenny Dich-ter, the founder of Marquis Jet and original innovator of the 25-hour fractional jet card, Wheels Up now has 650+ members, 25 aircraft in its private fleet and strategic alliances with world-class partners that include Beechcraft, Cessna, Jet Aviation, JetSuite, HeliFlite and VistaJet. The company continues to break daily revenue flight records and recently reached 40+ flights in a single day.

By the end of this year, Wheels Up projects it will have 1,200 members and more than 40 aircraft in its program, including 27 brand new King Air 350i aircraft, 10 Citation Excel/XLS aircraft and access to three to five new VistaJet Global 5000s. Wheels Up will launch proprietary technology for a new cutting-edge booking and rideshare application for members that will have a definite impact on the industry.

Wheels Up’s membership initia-tion fee is substantially lower than the acquisition or card costs of most competitors. At the same time, it provides members with access to a diverse private fleet of business aircraft.

“In a very short time, we have dis-rupted the private aviation industry with our membership model and access to a variety of aircraft, our focus on safety and stellar customer service and our impressive roster of exclusive partners,” said Dichter. “We are attracting an entirely new seg-ment of flyers with the King Air 350i as our entry-level aircraft, as well as catering to the experienced flyer.”

Dichter, who placed an historic $1.4 billion order for 105 King Air 350i aircraft, calls the safe, versatile aircraft the “SUV” of private aviation. “The King Air 350i is a much more cost-effective way to fly short-haul missions, providing access to hard-to-reach places, but with all the creature comforts,” said Dichter. “It includes a spacious cabin for eight adults, free WiFi and large storage capacity for baggage.”

Dichter, a lifelong entrepreneur, founded Wheels Up after realizing private aviation was ready for anoth-er game-changing business model. He had already transformed the industry with the founding of Mar-quis Jet in 1999. During his tenure, Dichter led Marquis Jet to cumulative revenues in excess of $4 billion, and another $1 billion in fractional sales,

before Marquis Jet was acquired by NetJets in 2010.

With his entrepreneurial instincts as keen as ever, Dichter is once again providing a new way of flying for both business and leisure travelers. “Wheels Up has democratized the avi-ation pyramid by lowering the initial price point, while adding many other important benefits,” says Dichter.


VALUE-ADDED BENEFITS

The attraction of the Wheels Up business model also includes many value-added benefi ts. “Wheels Up has an ‘8760 culture,’ which equates to the numbers of hours in every year,” says Dichter. “That means we’re committed to provid-ing excellent customer service to our members every hour of the day, whether they’re in the air or on the ground.”

This is evident in Wheels Down, an exclusive lifestyle and events service that engages members through exclusive offers around major sporting events, concerts and culinary opportuni-ties. It also allows members the chance to meet luminaries from the worlds of entertainment, sports, politics and business.

Wheels Up has sponsored A-list events around Super Bowl XLVIII, Boston Red Sox, The Masters, Art Basel, Nantucket Wine Festival, Michael Jordan Celebrity Golf Invita-tional, Florida Panthers, San Diego Padres and Sundance Film Festival.

We’re attracting an entirely new

segment of fl yers.”


THE PRIVATE AVIATION FIRM HAS A BANNER YEAR, THANKS TO ITS REVOLUTIONARY BUSINESS MODEL

ÉWHEELS UP

É C O N TA C T

855.FLY.8760www.WheelsUp.com

Wheels Up acts as agent for the Wheels Up members, and is not the operator of the program aircraft; FAA licensed and DOT registered air carriers participating in the program exercise full operational control of the program aircraft. Any aircraft owned or leased by Wheels Up are dry leased to the operating air carrier to facilitate operations by that carrier.


Bombardier Business Aircraft has the largest portfolio of business jets in the industry, covering all aircraft segments. As a result, this division of Bombardier has become a global leader in private aviation, with a focus on designing aircraft that address customers’ needs. The com-pany’s most recent launches include the Learjet 70 and Learjet 75 in the light segment, and the Challenger 350 in the super midsize segment. The Global 7000 and Global 8000, scheduled to come into service in a couple of years, promise to trans-form the ultra-long-range class.

The Learjet brand is known the world over for its sleek ramp appeal. Pilots also love the Learjet’s perfor-mance and handling characteristics. The Learjet 70, which can carry six passengers, cruises at a speed of Mach 0.81 and can climb to an operating ceiling of 51,000 feet. This Learjet also has an innovative cabin management system and state-of-the-art communications options. The Learjet 75, carrying eight passengers, has an elegantly appointed double-club configuration in its cabin, with individual touch-screen monitors and advanced connectivity options for maximizing productivity in flight.

The new Learjets incorporate the Bombardier Vision Flight Deck. Considered the industry’s leading avionics package, it is designed to optimize productivity and safety for unprecedented levels of pilot comfort and control. With the new avionics suite and the many other design advancements, both Learjets represent an evolutionary step for-ward for the light business jet.

The Challenger family is known across private aviation as for its productivity-enhancing layout, high reliability and low operating costs.

The super midsize Challenger 350, built on the success of the Challenger

300 jet, now has an improved range with a higher fuel efficiency. It also has the lowest operating costs in its class. Bombardier designers looked at every aspect of the cabin, one of the widest in its class, adding new forward-thinking avionics for the pilots. For passengers, larger windows, newly designed seats and a Passenger Service Unit at each seat, as well as other ergonomic and aesthetic designs, provide both com-fort and space for productivity. Like all Challengers, the new 350 can be customized with leading-edge cabin communication equipment. The first entered into service in late June.


GOING GLOBAL

The Global 7000, scheduled to enter service in 2016, has four distinct living areas, delivering productive space for an executive team and a home-like atmosphere for long-range trips. The table for six, largest windows in its class, reclining seats and private stateroom all serve to leave travelers refreshed and relaxed when they reach the end of their journey.

The Global 7000’s high-effi ciency engines, contributing to low fuel burn and low emissions, allow it to fl y farther to more destinations without stopping to refuel. Non-stop city pairings include New York to Dubai, Bei-jing to Washington and London to Singapore. Its outstanding short-fi eld capabilities will also allow it to access challenging airfi elds.

The Global 8000, entering service a year later, promises to push the boundaries of business aviation even further. The Global 8000 will deliver faster connections, more cabin space and more comfort than any aircraft in its class. It has an unsurpassed M 0.90 high-speed cruise capability, with a non-stop range between cities like Los Angeles and Sydney, or Geneva and Bali. Like the Global 7000, it combines impeccable craftsmanship with smart design for the perfect balance of work and pleasure.

Both aircraft, at the pinnacle of private aviation, promise to set new standards in business jets.

The Global 8000 will push

the boundaries of business aviation.”


A HISTORY OF FORWARD-THINKING DESIGN, DEMONSTRATED IN THE MOST RECENT LAUNCHES

ÉBOMBARDIERBUSINESS AIRCRAFT

É C O N TA C TBombardier Business Aircraft Sales Representatives 514.855.5001www.businessaircraft.bombardier.com


In late June, the first production HondaJet completed its first flight from Honda Aircraft Company’s headquarters in Greensboro, North Carolina. The handsome green-and-white jet, with its striking Over-The-Wing Engine Mount (OTWEM), climbed to 15,500 feet, reaching 348 knots of true air speed. More than a thousand employees, represent-ing some 40 countries, greeted the HondaJet when it landed.

The milestone flight also moves HondaJet closer to FAA certification, forecasted for the first quarter of 2015. Michimasa Fujino, president and CEO of Honda Aircraft Company, said new aircraft will be immediately avail-able for delivery once FAA-type certi-fication is achieved. Currently, there are 11 new HondaJets on the final assembly line on Honda’s 130-acre campus in Greensboro, North Carolina. The company has orders for more than 100 of the innovative new jets.

The HondaJet’s statistics show how much of a game-changer it will be for private aviation. It has the fastest cruise speed, highest altitude and best fuel efficiency of any light busi-ness jet. Its top speed of 420 knots is 10% faster than any other aircraft in its class. At the same time, it has an 1180-nautical mile range, delivers up to 17 percent better fuel efficiency than competitive aircraft, with a land-ing distance of less than 3,000 feet.

It also has the largest-in-class cabin in the light-jet category, with 66 cubic feet of cargo space.

“Honda only enters a new market if it can bring new value to the indus-try,” says Fujino, who first proposed the HondaJet concept in 1997. “Our goal was to create a Honda-original airplane that would bring new value to our customers through innovative technology. I also hope the HondaJet will set a new and higher standard within business aviation.”

Fujino’s vision, which never wa-vered during the extensive research and testing phases, was to create a more intuitive business jet, with a high degree of safety. “We designed the HondaJet to be safe, simple and fun to fly,” says Fujino. “And since it’s single-pilot certified, it has strong appeal with the owner-pilot segment. Our custom-ers’ experience with aircraft ranges from single and twin turboprops to light and midsized business jets.”

HondaJet designers also configured the cabin to maximize every millime-ter. The distance between passenger seats, for instance, is 86 inches—the difference between a comfortable flight and knocking knees with an-other passenger. The private lavatory, whisper-quiet interior and multi-axis seating (four are standard, five option-al) also raise the cabin’s comfort factor to the top of the light-jet category.

Honda has also created an all-embracing infrastructure to support its new business jet. Its campus at the Piedmont Triad International Airport in Greensboro, North Carolina, includes more than 600,000 square feet of space with an advanced R&D facility, corporate headquarters, production and customer service facilities.

“Our customer service facility will complement our dealer network by providing heavy aircraft maintenance, major repair and overhaul, and war-ranty services,” says Fujino, adding that clients will receive “24/7” techni-cal support. “Our goal is to provide the very best service for our HondaJet customers from day one. The most rewarding moment for me is seeing how excited they are to own this advanced light jet.”


OTWEM: HONDA-SPEAK FOR PIONEERING DESIGN

The HondaJet Over-The-Wing Engine Mount (OTWEM), a break-through in aeronautic design, is the result of decades of R&D. “Twenty years ago, many in the industry thought that mount-ing engines over the wing was not a good idea from both the aerodynamic and aero-elastic standpoints,” says Fujino. “But we discovered that through ex-tensive research and testing, the OTWEM design actually reduces drag and increases cabin space.”

Honda’s engineers combined the OTWEM with natural-laminar fl ow technology in the wing and fuselage nose to make the aircraft more aerodynamic, and a composite fuselage, which is signifi cantly lighter.

The result: a light jet with best-in-class speed, fuel effi ciency and cabin size, not to mention the most radical-looking wings in business aviation.

The HondaJet is a game-

changer in the light-jet category.”


TRANSFORMING BUSINESS AVIATION WITH A REVOLUTIONARY DESIGN AND NEW VALUE PROPOSITION

ÉHONDAJET

É C O N TA C T888.453.5937www.HondaJet.com


worth private aviation october 2014

Documents

business aviation

new business model

unusual business model

unique business model

fuel e ciency

o c t o b e r n o v

new aircraft

transoceanic business