Executive Jet Guarantees Charter Income

Corporate operators looking to use their aircraft for charter are being wooed by Executive Jet Management (Booth 5908) with a program that guarantees an aircraft owner a specified amount of annual charter hours and income once that owner is on EJM's FAR Part 135 charter certificate.

"On a midsize jet, it is possible to secure a charter guaranteed equivalent to $200,000 or more of income above the direct operating cost," said Albert C. Pod, EJM executive VP.

The program is primarily based on aircraft condition, location and type. Presently applicable aircraft are: Citation Models III, VI, VII, X, Excel, V and Ultras; Hawker Models 800, 800XP and 1000; Falcon 50s, 900s and 2000s; Challenger 601s and 604s; and Gulfstream IVs, IVSPs, and Vs. The guarantee is typically one year in term, and can be renewed. The program is good throughout the U.S.

The primary reason EJM can guarantee a predetermined level of charter hours and income is the company's level of demand. Not only does the company sell charters, it provides charter backup for the huge NetJets fractional ownership program administered by EJM's sister company, Executive Jet Aviation.

As an example of the program's results, EJM said that in 1997 a client with a midsize jet generated more than $129,000 in profit above the aircraft's DOC from 170 charter hours. During the same period, the aircraft flew 360 hours for its owner.

"EJM's ability to maximize the utility of this aircraft resulted in a reduction of the client's total net cost from $2,025 per flight hour to $1,666 per flight hour," said EJM.

Another operator said it took only 30 days for his company to go through the aircraft conformity, pilot training and documentation requirements to qualify under EJM's Part 135 certificate.

Separately, EJM recently achieved FAA authority to conduct Part 135 operations to Europe, Hawaii, Australia, New Zealand, Indonesia, Malaysia, New Guinea, The Philippines and Taiwan.

By Gordon A. Gilbert