Flight Options, the only fractional ownership program specializing in used aircraft, has surpassed its growth predictions for its first business year, according to chairman and CEO Ken Ricci. The company once hoped to have a dozen aircraft by now, Ricci said on Monday, but instead has 43 aircraft in service today, including five Challengers.

Flight Options plans to add a three-airplane Gulfstream IV program next year, and to end 2000 with 76 aircraft on strength. The company is also the main customer for Fairchild's new airline-class, intercontinental Envoy 7, the corporate variant of the 728JET regional airliner. Flight Options announced an order for 25 Envoy 7s at the Paris Air Show in June.

The growth of the Flight Options program confirms the appeal of fractional ownership for used aircraft, says Ricci. All Flight Options aircraft are refurbished, with a standard interior and paint, and are offered at a total cost which represents a 30-35% saving over a comparable new aircraft. Lower capital cost and depreciation account for most of the savings, says Ricci. One lesson that the company has learned is that customers tend to keep their budgets constant and trade up to larger aircraft: Flight Options started with too many small aircraft, but Ricci notes that, because the company deals in the used market, it can respond and add capacity more quickly than it could acquire new airplanes.
The Envoy 7 fleet will comprise new aircraft, but fit into Flight Options' strategy because they cost considerably less than other airliner-type aircraft.