Private Charters an Uncharted Market

BRUNSWICK, Maine -- Agents who like lobster might want to start selling corporate jets to clients and using Air Webster to broker the deal.

Agents who refer a first-time customer to Air Webster will have six 1.5-pound lobsters shipped to their homes, said Adam Webster, founder and chief executive officer.

If an agent doesn't care for lobster, he or she can opt for another prize with a New England, flavor -- a $100 gift certificate for L.L. Bean, the Maine-based company that sells outdoor apparel via catalog.

Webster said he is offering the incentives because he knows that booking clients on private jets is uncharted territory for many agents. He said he's hoping the lobster and a 5% uncapped commission will steer more business his way.

The year-old company markets its service to travel agents, and about 70% of its sales are through referrals by agents.

Webster said he knows agents have access to a wealth of prospective customers, and because agents work closely with clients, they know what clients need.

He added that his company "protects agents," meaning that customers who do business directly with Air Webster are charged exactly what they would be charged if they booked through an agent.

Of course, there's nothing stopping agents from booking directly with a charter operator. However, that can be a tough task for agents who aren't familiar with the charter industry, said Webster.

"We're a broker that knows how to handle all the details," he said. "If agents have the time and wherewithal, they can book with the charter operator. That happens rarely."

Jeffrey Dal Poggetto is one of those rare agents. He works for Andavo Travel in Corte Madera, Calif., located just outside San Francisco.

Some of his clients travel first class regularly, but when they maintain a schedule that can't be accommodated by commercial airlines, they charter a private jet.

"The travel arranger gives me specifics, and I get it done," Dal Poggetto said.

Dal Poggetto said he does most of his business with two operators.

"If they get to know you and you establish a track record with charter operators, they give you referrals if they don't have the right plane for you," he said.

Dal Poggetto said he is confident selling charters because he has done research on the various types of planes. He also keeps handy a copy of the Air Charter Guide, the primary publication for the industry.

"Booking charter involves knowing the companies, knowing the aircraft and what the time frame is [for aircraft to become available]," he said.

Dal Poggetto said the charter operators with whom he deals don't pay commission. Andavo includes the service as part of its monthly management-fee package.

Jeff Dolan, charter manager for Mac Dan Aviation in Fairfield, N.J., said his firm offers agencies a rate that is 5% less than the retail price. This practice protects an agent's ability to mark up the price.

Some operators do pay commissions, said Dolan, but usually in a situation where an agency is driving volume to the operator.