Most privileged fliers escape inconvenient security procedures

OAKLAND -- Not many people can hop on their employer's corporate jet for a cross-country flight or have the wherewithal to take a chartered plane to a weekend fly-fishing jaunt in Montana.

But despite the bumpy economy and the stock market's two-year tumble, there still are a lot of very well-paid executives out there. To avoid frustrating airport delays, they're turning to company-owned airplanes and chartered jets to shuttle them around the world.

One company that handles corporate jets for major Bay Area corporations is Oakland-based Kaiser Air Inc.

While most of the U.S. airline industry is in turmoil, charter revenue at privately held Kaiser Air is up 60 percent this year, said Sandy Waters, Kaiser Air's vice president of business development.

Many executives want to avoid long airport lines, delays and other hassles felt by those who fly coach, he said. On a private or chartered jet, they can save time by flying to smaller airports around the country that are close to their destinations. For example, corporate jets can fly to and from an airport in Teterboro, N.J., which is about 12 miles from midtown Manhattan.

Corporate jets also offer swiveling seats, telephones, televisions and -- most importantly -- total privacy for those on board.

"You can accomplish much more," Waters said, showing off a luxurious Gulfstream G4 with leather seats that fold down to become beds, wood paneling, a couch and flat-panel TVs. "On a private plane like this, there's no interruptions."

Jake Cartwright, president and chief executive officer of Burlingame-based TAG Aviation USA Inc., which has about 90 planes available for charter nationwide, agreed.

"It's pretty hard to do any business when you're sitting in coach on United," he said.

Waters said his clients include several of the largest Bay Area corporations, but they do not want their names published -- out of consideration for their executives' privacy and security. The company's clients include top banks and a well-known winery.

Kaiser Air started in 1946 as the flight department for the companies run by Henry J. Kaiser. The company now manages 15 planes. Of those, six are solely used by their owners. Seven are privately owned but available for charter. The remaining two are owned by Kaiser and used for charters.

Michael Boyd, a Colorado-based aviation consultant, said private jets have grown more popular in recent years, as business travelers have been getting tired of paying an "enormous" amount of money for first-class flights fraught with delays.

On private jets, executives don't get "abused" by what Boyd considers to be bad security -- airport security guards patting down elderly women and forcing people to throw out their tweezers.

However, Boyd said that the market for private corporate travel is starting to plateau.

"There's a limited number of people who can afford that," he said. For example, Kaiser Air charges $1,700 to $5,000 an hour to charter planes, depending on the size of the aircraft.

At TAG Aviation, charter sales are up 28 percent compared to last year, Cartwright said.

But he said business is not as good as in the heady years of 1998 and 1999.

"We're doing pretty darn well given the economy," Cartwright said.

In some instances, he said, if companies put enough people on a plane, chartering a plane can actually be cheaper than buying expensive last-minute first-class tickets.

"It's a heck of a good way to travel for business," he said.

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