Private Charters: Blossoming Business; Consumer’s Delight

Wastage of time that usually accompanies commercial airline travel is a big disincentive to superior business. For busy executives, that costs money. Apart from hectic and time-consuming check-in procedures, there's a 30% chance that a scheduled European flight will be delayed by at least 15 minutes. Further, growing security concerns worldwide in the wake of Sept. 11 attacks has led to an increased security procedures which add to the check-in time and are often frustrating.

In response, a growing number of businesses are turning to private air charters to move key employees from point A to point B. At a time when the commercial aviation industry is stumbling, the private charter business is soaring. "Sept. 11 was a catalyst for actual change," says Patrick Margetson-Rushmore, CEO of London Executive Aviation, a private charter operator.

And if you think that charters are just for top brass. You are wrong. Much of the new business reportedly comes from small-to-medium-sized companies that need to move middle managers around several European cities within a few days. In a survey of European charter operators by the trade publication Air Charter Guide, 35% said traffic had increased since the attacks, while 40% reported no downturns since September. These are healthy figures, especially in times when the business for Europe's commercial carriers has fallen by 15% within Europe and transatlantic business by 33%. In the U.S., which has long led Europe in general aviation, domestic private charter flights have surged 30%, and business to Europe is booming too. World Air Pass, a U.S. broker between jet operators or owners and clients, says flights to Europe are up 30%.

The trend toward private aviation was first noticed in 1998, when congestion and delays at Europe's hub airports were angering the first-class and full-fare economy flyers, the very people who are in a position to go elsewhere. Private charter services will continue to grab big chunks of the top-end commercial market, where margins are as comfortable as a first-class seat.

Security worries may soon fade, but charter operators are convinced of keeping their new customers intact. "Once they've tried it, they don't go back to commercial airlines," claims Michael Hyde, president of World Air Pass. After all it’s about value in time. For example, charter planes can take off and land from 3,000 airports in Europe, 10 times the number available to commercial carriers. Forget about arriving hours ahead of your flight to check in and clear security points. Even for overseas journeys, all it takes a customer to board an aircraft is just 15 minutes. And if you wrap up your work early, or need to stay late, the airplane is ready when you are.

Private aviation flights aren't cheap, but compared to first- or business-class tickets — especially those bought at the last minute — they're sometimes a bargain. World Air Pass can fly a 14-passenger jet non-stop from New York to London at $3,000 a seat, one way. Considering that a round-trip, first-class commercial ticket could cost about $11,500 (and business class up to $7,400), a private jet can still be cost-efficient. Even when the private fare is higher, time savings can more than compensate.