Bombardier's Flexjet program is making strong inroads into the fractional ownership market, with sharp growth in its fleet size and customer base.

With 365 current owners, Flexjet holds about a 25% share of the fractional ownership market, based on FAA records, according to marketing and sales VP Mike Riegel. The figure doesn't double-count owners of shares in multiple aircraft, he said.

Flexjet has 70 aircraft in its program today and will reach 85 by the end of its fiscal year on January 31, equating to a 45% increase over fleet size at the end of its previous fiscal year, Riegel said. Netjets is also projected to have 480 shareholders by year end, up 45% from the previous 12 month period.

Flexjet will receive its first Lear 45 late this year as well as 16 more next year. Trips in the aircraft will be priced at a $4.40/nmi rate after initial capital investment and monthly fees, Riegel said. The new Bombardier Continental is slated to be added to the fleet in 2002, with the first six aircraft going to Flexjet shareholders. It will be priced at $5.62/nmi. The Continental has proved very popular with Flexjet customers and if Bombardier could double its production rate, "we could take all the aircraft," Riegel said.

Maintaining a constant flow of new equipment into the Flexjet fleet will be a key competitive advantage over other fractional ownership programs, Riegel said. The new aircraft keep Bombardier production lines humming, increasing efficiency and lowering pricetags. New aircraft also come factory-equipped with all the latest safety equipment.

Two Lear 31As, three Model 60s and one Challenger have initially been devoted to Flexjet's new European operation, which already is supporting U.S. Flexjet shareholders performing trips on the Continent. Eight to 10 more aircraft are planned for delivery next year. Shareholder capital investment requirements have been lowered and monthly fees raised to increase program appeal to European companies.

Netjet aircraft are projected to fly 67,000 flight hours this year, up 49% from the previous 12-month period.