On the Record With
Cameron Gowans, Chief Marketing Officer, Flight Options
Flight Options is methodically reducing the number of
aircraft types in its fleet from a dozen to just four, eliminating pre-owned
low purchase price aircraft in favor of cheaper-to-operate new ones.
"The most exciting news that we have at Flight Options is
that there's really no news," says Cameron Gowans, chief marketing officer of
the Cleveland-based fractional operator.
Flight Options, he explains, is about a year into a three-to
five-year strategy to transition to a new fleet. Approximately 70% of total
hours for 2005 are expected to be logged in the four new types: Hawker 400XP
and 800XP, Citation X, and Embraer Legacy.
"You don't need five light jets to claim you have a light
jet program," Gowans says. "You need one."
Flight Options has 63 Beechjet 400A/Hawker 400XPs, 32 Hawker
800XPs, eight Citation X jets and seven Embraers.
The company says it's the only fractional operator to offer
the Embraer Legacy, which it promotes for its large cabin and midsize operating
economics. One-sixteenth shares are available for as little as $1,493,750.
Seven operating aircraft are sold out and the eighth, to be delivered in
February, is half sold out. A ninth Legacy jet is expected in May.
Flight Options operates a total fleet of some 190 aircraft,
meaning there are approximately 80 older aircraft encompassing three small
Citation models, Beechjets, King Air, Falcon 50, Challenger 601 and Gulfstream
IV still operating. The company is moving to eliminate them without
discomfiting their owners.
Flight Options emphasizes flexibility as it markets
fractional ownership, and also talks up various bonus plans.
¥ Buyers of a 3/32nd share, for example, are normally
entitled to 75 hours of flight time per year as part of a five-year management
agreement. But until December 16, 2005, the firm is offering 100 hours per year
with no additional capital cost. This equates to a saving of nearly $200,000,
the company says.
¥ Also through December 16, Flight Options is offering a
one-year free fuel plan to new buyers of shares in Hawker 400XP, Hawker 800XP
or Legacy jets.
¥ Flight Options now offers the option to purchase a share
in a new Hawker 800XP and fly at the Hawker 400XP hourly rate for up to the
first two years of ownership. "This is a savings of $425 per flight hour." Inventory
is limited.
The company stresses flexibility in its JetPass jet card
program too, claiming the most liberal upgrade/downgrade program in the
business.
Flight Options is now owned 97% by Raytheon, which invested
a further $50 million in the fractional operator this past August.
Bob Tyler, a veteran of TAG Aviation, has joined Flight
Options as operations manager.
