Automotive Air Charter: Business
Aviation's Unlikely Bedfellows
When DaimlerBenz merged with Chrysler last year, it set the stage
for a much more unlikely partnership--that of DaimlerChrysler
Aviation (formerly known as Chrysler Pentastar Aviation) and General
Motors.
While the DaimlerChrysler merger resulted in a major expansion
of the company's other aviation activities, the automotive giant's
air charter business came to a grinding halt. The FAA does not
permit foreign ownership of FAR Part 135 certificates and so the
automaker was forced to suspend charter operations in November
1998 until a solution could be found to its ownership status.
Sensing an opportunity to generate revenue and offset the cost
of operating his employer's flight department, Ken Emerick, General
Motors' director of Worldwide Travel, and DaimlerChrysler Aviation
president Tom Davis, eager to re-enter the charter business, began
to think about the unthinkable--a joint venture between the two
companies.
The resulting entity -- Automotive Air Charter -- benefits from
the sophisticated fleets of two of the country's largest and oldest
flight departments. The new company's charter fleet includes four
Gulfstream Vs and Five Cessna Citation Xs -- the largest of either
type in the U.S. DaimlerChrysler's Hawker 800XP is also available
and additional aircraft managed by DaimlerChrysler may be available
in the future.
Davis has credited Emerick with making this venture a reality,
saying "GM is such a perfect fit for us because they have
the same culture." That culture, according to Davis, includes
a strong commitment to safety and high training and maintenance
standards, as well as superior aircraft.
Davis added that his company's "excellent relationship with
the FAA" assisted in the process. "You have no idea
how big a job it is" to put the charter operation back together,
he said.
When DaimlerChrysler took its sabbatical from the charter business,
it found other sources for its clients, although the company hopes
to win all those clients back.
"We've kept in touch with our customers." Davis said.
He says he expects many, if not all, former customers to return.
On October 2nd, just weeks after receiving final regulatory approvals,
Automotive Air Charter operated its first flight from Pontiac,
MI, to Denver and Jackson Hole, WY, aboard DaimlerChrysler's Raytheon
Hawker 800XP. It's just the start, said Steve Taylor, director
of sales, marketing and customer satisfaction for DaimlerChrysler
Aviation. The company already has bookings for two GV charters,
one to Johannesburg, South Africa, the other to Sydney, Australia,
over the winter holiday and other advance bookings are strong
as customers rediscover DaimlerChrysler and its unlikely new partner,
General Motors.
Automotive Air Charter is evidence that the strong ties and relationships
in business aviation often transcend other rivalries.
By David Rimmer
NBAA 1999, Atlanta, Ga.