On the Record with MICHAEL MCQUAY, PRESIDENT, BOMBARDIER
FLEXJET
Flexjet Continues to Refine Fractional Model
"We saw a significant need to give our owners more flexibility,"
says Michael McQuay, describing changes to the Bombardier Flexjet
fractional ownership plan as "a product of the economic conditions
that exist as well as a natural evolution of the fractional jet
program."
McQuay is the new Flexjet president, having taken over from Clifford
Dickman this past spring. He'd been vp and general manager of the
program since May 2001. He's also been CEO and managing director
of Air Pacific Limited, Fiji's international airline.
New this year at Flexjet is a program called Versatility Plus,
which allows fractional owners to buy and sell hours they need or
don't use.
New for Flexjet at NBAA 2003 is a cooperative program with Delta
AirElite, the business jet arm of Delta Air Lines, allowing customers
to buy blocks of time on specific Flexjet aircraft through the airline
(see box). It was announced here Monday.
Versatility Plus allows up to 25% of a Flexjet flier's unused
hours to be placed in a pool, to be sold. "As your total requirements
change throughout your contract period, it gives you an opportunity
to subtract or add hours," McQuay explains. "That has
been a critical issue."
The new arrangement with Delta, called Select Your Jet, is a 25-hour-minimum
plan allowing Delta AirElite customers to fly on Flexjet aircraft.
"It's obvious that there is an increasing level of demand for
hourly programs," says McQuay. Select Your Jet, he says, is
designed "to compete directly with the Marquis program"
run by arch-rival NetJets.
Business in general has been "challenging," McQuay says,
and "some owners that have diluted their interest." But
Flexjet is making money. "Last year we were the only fractional
operator to achieve operating profitability exclusive of interest
and depreciation," he claims.
"The 604 is by far our most profitable program," McQuay
adds, telling Show News that Flexjet granting owners of a 1/16th
share in a Challenger 60 hours per year, compared to the industry
standard of 50, to share the wealth. The 604 bonus was offered in
April. New in the last two months is a whole set of customized share
sizes for other Flexjet aircraft. Bombardier Flexjet is at Booth
1079 here.
--Rich Piellisch
Flexjet Fleet Getting New Aircraft
Bombardier Flexjet has approximately 100 airplanes in its
fleet with about 700 owners, and is enjoying a renewal rate
of about 85%. Flexjet expects to take delivery of the first
four of 25 new Challenger 300 (formerly the Continental) jets
by the end of its fiscal year on January 31.
"We've pre-sold 17 full airplanes," new Flexjet
president Michael McQuay says of the Challenger 300. Fully
sold out is a pair of Learjet 40 light jets, also to be delivered
by the end of January, the first of 13 on order.
Skyjet Facilitates Flexjet
Bombardier's Skyjet charter business is doing very well, says
Mike McQuay, the new president of Bombardier Flexjet. "It's
actually having one of the best years in its history,"
he told Show News on the eve of NBAA.
Many observers see simple, traditional charter as the most
economical way to fly in a business jet without an ownership
commitment. And a charter fleet provides a cushion for fractional
operators, providing a pool of extra aircraft to draw on in
times of high demand.
"It's definitely a more economic and profitable way
to manage your fleet," McQuay says.
Platinum Status, Instantly
Delta AirElite's new Select Your Jet program with Bombardier
Flexjet is the first to give customers platinum status, just
like the most frequent of the airline's frequent fliers, from
the first day of their membership.
Select Your Jet enhances an existing fleet membership program
at Delta AirElite by allowing customers to specify exactly
the aircraft they want from the Bombardier Flexjet lineup.
It also aims to please premium travelers who don't always
need their own plane. "There's very few people who are
exclusively on a business jet," observes Delta AirElite
president Mike Green. "Most people utilize a mix,"
he says, and with the new platinum incentive, even new customers
for the Select Your Jet offering get treated like old friends
on the scheduled airline, "from day one."
