Charter Packages for Business Jets Can Save Almost 50 Percent Over Fractional Ownership

OAKLAND, Calif. – As executives turn to private jets in the wake of Sept. 11, many corporations are finding that charter packages can save 20 to 40 percent over "fractional" ownership of business jets.

"If a client plans to charter a plane for 100 hours a year, the cost savings can be almost 50 percent over fractional ownership, depending upon the type of aircraft and the mix of one-way and round trips," said Sandy Waters, vice president of KaiserAir, Inc.
KaiserAir manages business jets for corporations and private clients, and also offers charter service on its fleet of 15 aircraft.

Under the much-advertised "fractional" ownership plans, in which a company signs a contract for one-eighth to one-half of a business jet, the company is required to put up a portion of the purchase price of the plane, Waters explain.

Charters, in contrast, typically rely on excess time on aircraft whose owners are simply trying to defray part of their costs by leasing out their planes on days that they don't plan to travel. "The owners do not expect to recoup the entire cost of the plane, so charter rates tend to be significantly lower," Waters said. "Charter not only saves money for our clients, but it also allows them to select the best aircraft for a particular trip."

KaiserAir, based at Oakland International's North Airport, has the largest fleet of business jets based in the San Francisco Bay Area.

An analysis of its "Plan K" for clients who sign a contract for 100 hours of charter services a year shows savings of 5 to 48 percent over the major fractional ownership companies.
Its charter business has increased approximately 25 percent since Sept. 11, while the number of companies seeking proposals for owning and managing their own aircraft has jumped almost 50 percent, Waters said.

The biggest increase in charters at KaiserAir has been for travel in the Western states, where an extra hour or two at check-in counters can significantly increase the length of a trip.

"Smart businesses have always turned to private business jets because the savings in time translate into significant savings in dollars," Waters said. "In today's climate, passengers are concerned about security and also want to avoid the long waits to check in for commercial flights." In addition, most of the major scheduled airlines have reduced service, making commercial flights even more inconvenient.

KaiserAir, Inc. dates back to 1946 when it began as the flight department for the Kaiser companies founded by the late industrialist Henry J. Kaiser. A full-service management company and fixed-base operator, it specializes in the operation and maintenance of Gulfstream, Hawker, Cessna and other business jet aircraft.

Because of Oakland's superior location and facilities, 33 of Fortune Magazine’s Top 50 corporations make KaiserAir’s Executive Terminal their home when they conduct business in the San Francisco area.

Additional information is available on the Internet at www.kaiserair.com, or by telephoning 510-569-9622.

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