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© 1998 By Michael P. Fleming

CATEGORY

DESCRIPTION

Industry Players

Derive their revenues primarily from the operation or support of business aircraft
  • 1. Charter Operators
  • Hold Part 135 air taxi certificates and charter out full-service, non-scheduled flights to third parties. Licensed and inspected by the FAA. Can charge market prices. Some own or lease their own aircraft. Increasingly, they charter out aircraft owned by third parties.
  • 2. Fractional Program Managers
  • In existence for over a decade, Fractional Programs involve multiple Program Participants, each of which owns a share in an individual aircraft, all of whom agree to swap time on their respective aircraft with all the other Program Participants. Program Managers provide the same sorts of services as Management Companies, and, by the same theory, have done so under Part 91.
  • 3. Management Companies
  • Provide a host of services requiring aviation expertise (such as providing flight crews, arranging maintenance, fueling, hangar, insurance, and scheduling). Although in existence for many years, not defined by the FARs. Function primarily under Part 91 on the basis that the aircraft owner is the operator and the Management Company merely provides services.

    Other Operators and Users

    The aircraft tends to be secondary to an unrelated primary business
  • 1. Private Fleet Operators
  • Typically large companies that operate more than two aircraft for their own business travel needs. Usually have large internal flight departments comprising pilots and maintenance experts.
  • 2. Small Flight Departments
  • Operating one or two aircraft, these companies ordinarily have small internal flight departments.
  • 3. Management Customers
  • Typically operate one (sometimes two) aircraft but have no internal flight department. They arrange for a Management Company to serve as their "external" flight department.
  • 4. Fractional Program Participants
  • Owners (or increasingly lessees) of Fractional shares, typically not previously active in aircraft operations. Attracted to ownership, turnkey services, and guaranteed costs. Typically need 100 to 300 flight hours per year and acquire access to Program’s pool of aircraft for 200 hours per year for a ¼ share (Programs offer shares as small as one-sixteenth). Sometimes used to augment existing fleet.
  • 5. Occasional Relationship Users
  • Occasionally use an aircraft owned by an unaffiliated company with which there is some relationship. Typically do not wish to become sophisticated aircraft operators. Rather, desire use on a limited basis, without commitment, expense, and resources normally required. But for the relationship, they would probably not use business aircraft at all, or perhaps would charter in.
  • 6. Charter Customers
  • The purest of occasional users, they make no long-term commitment to business aviation but simply charter in when convenient. Most use business aviation aircraft less than 100 flight hours per year. Aircraft owners often charter in as well to fill schedule or mission gaps.

     





    2008 CL-605 Position
    Serial Number 5777
    2010 CL-300 Position
    Serial Number TBD
    2006 Challenger 300

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    1987 Gulfstream IV
    Serial Number 1006
    2005 Citation Sovereign
    Serial Number 30
    1988 Challenger 601-3A
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    1989 Challenger 601-3A
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    1994 Falcon 50
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    2005 Hawker 800XP
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    2008 Citation CJ2+
    Serial Number 0387
    2003 Hawker 400XP
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    1997 Beechjet 400A
    Serial Number RK-174
    2000 Gulfstream V
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    2005 Hawker 800XP

    Serial Number 258713

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