Bombardier's Flex Jet Expands to Europe

Fractional ownership programs "clearly are the growth engine of business aviation," claims Dennis Keith, president of Bombardier's Dallas-based Business Jet Solutions. Notably, 80%of BJS customers are first-time business aircraft owners, according to Keith.

The program's rapid growth now has spurred BJS to move outside North America. By the end of 1998, BJS will have three fractional ownership aircraft based in Europe-a Learjet 31A, a Learjet 50 and a Challenger 604. In North America, BJS operates the second largest Learjet 60 fleet and the third largest Learjet 31A fleet. In 1999, it will add two 6,500-nmi range Global Express aircraft.

The growth of fractional ownership programs in Europe, though, will be challenged by tax laws that don't offer the same advantages as those in the U.S. BJS is considering a long-term lease or possibly an FAR Part 135-like air charter structure to get around European tax deductibility issues.

By Fred George