Find out why a jet card may be your solution to private aviation.

Steven O’Neill, President and CEO of CitationAir, divulges keen insight on jet card membership with Affluent Page Luxury Index. CitationAir, formerly known as CitationShares, now provides an array of private aviation programs: Jet Card, Jet Access, Jet Shares, Jet Management and Corporate Solutions. We have the inside scoop on jet card programs, so you can decide whether or not these private aviation memberships are for you.

Q: Why choose a card membership company over a fractional ownership, a personal private jet or a charter service?

A jet card program is simple, flexible and requires very little capital commitment on behalf of the customer. Fractional programs and owning your own asset both require a longer-term commitment with a larger capital outlay than a jet card program. With charters, you don’t receive the same level of service you would normally get with a jet card program. Also, charter customers oftentimes do not know the operator flying the aircraft or the pilot’s level of expertise, and the age and condition of the aircraft may not be up to industry standards.

Q: Who is the card program aimed at?

The jet card product is perfect for those who want the advantages of private travel but don’t want the risk of owning an asset and/or for someone with less than 50 hours of flying per year.

Q: What are the drawbacks of jet cards?

Hourly rates are generally higher than rates for a fractional share and since you don’t own the asset, there is no benefit from residual values if and when you decide to sell the asset. Also, jet card flyers are flown under Federal Aviation Regulation (FAR) Part 135 which means the customer is subject to an additional Federal Excise Tax. Fractional customers (excluding 25-hour shares) fly Part 91k, which does not require the customer to pay an additional tax.

Q: What should first-time jet card purchasers be aware of?

I would encourage first-time jet card purchasers to do their research on each jet card program in the industry. Not all jet cards are alike. An individual or company’s financial situation will be a factor in determining the best program for them. Also, safety is the number one priority so it’s important to take a look at aircraft age, how often the aircraft is serviced and maintained as well as pilot training and certification standards. Customers who buy from a company with a comprehensive portfolio—with all products “under one roof” so to speak—will find the process of moving along the product continuum smoother once their needs change.

Q: If one can afford to purchase and maintain their own jet, why would they consider jet card membership?

There are many factors as to why some people choose one product over the other. With the recent decline of the economy, some people don’t want the risk associated with owning a whole jet or fractional share. Oftentimes, they don’t want to be locked into a five-year program with a share purchase nor do they want the responsibility of maintaining a whole jet, hiring pilots, etc. They might also choose to buy a jet card, alongside their owned jet, to “supplement” their flying without the additional purchase of an asset, or if they need an aircraft type larger or smaller than the one they own, or if they frequently require simultaneous usage.

CitationAir, 877.692.4828, www.citationair.com

Avjet explains the “new normal” of the private aviation industry.

Private luxury jets have long been an important part of the American landscape. Americans demand the very best in everything, particularly when it comes to safety, comfort and efficiency. We simply will not settle for less.

Like almost every other industry in the U.S., the private jet industry was decimated during the latter half of 2008. Flight departments shut down and long standing U.S. companies went under. Even private owners, who were not restricted by shareholder scrutiny, withdrew from flying their aircraft for fear of public backlash. Private aircraft values plummeted and supply of pre-owned aircraft skyrocketed.

With the financial disaster 24 months behind us, it is important to discern where we stand today. Thorough analysis of previous market cycles suggests we should have been fully recovered by now. Historically the private jet industry has flown in close formation with U.S. corporate profits. Since 1950 there have been eight official recessions lasting an average of 10 months, prior to the 2008 crisis. True to form, the private jet market mirrored every one of these recessions with a close parallel between recovery and corporate profits. This time around, we face a greater uncertainty leading many to question, is this the “new normal”?

The term, the “new normal,” gained worldwide recognition during the depths of the crisis in April 2009. Mohamed El-Erian, the CEO of PIMCO, used the term on CNBC to describe a new world of lowered growth expectations. PIMCO is the world’s largest bond investor with over $1 trillion under management.

Overnight, a man most people outside of financial circles had never even heard of was appearing on evening talk shows and newscasts. El-Erian argued that the return on any asset, whether a business, a financial investment or an aircraft, would be significantly lower for the next five to 10 years. Suddenly, everyone was using the term including President Barack Obama during a prime-time speech to the nation just three months ago. With the recent encouraging signs in the U.S. economy, the 4 to 5 percent returns on all assets for years to come proved unfounded in most instances.

Since El-Erian coined the term, the S&P rose 45 percent, longer term bonds have returned 9 percent and medium term treasury bonds returned 15 percent. GDP growth returned and corporate profits are up 44 percent during the same time frame. However, at this point, the “new normal” has not yet departed the private jet market. Unlike recessions past, the huge run up in corporate profits has not thrown the private jet market into take-off mode. There are a few indicators that suggest some sectors may be showing signs of promise.

The prevailing theme seems to be that “new” is good and “large” is better. More specifically this refers to aircraft that are five years or newer and of the large cabin variety. These would include the Gulfstream G450 and G550, Bombardier’s Global Express, Boeing’s Business Jet, Dassault’s 900 Series and its newest model, the 7X.

Across some of these model lines prices have actually begun to rise as evidenced by recent price increases for delivery positions of the G450, G550, XRS and Boeing Business Jet. Bombardier, buoyed by the recent strength in large cabin markets, announced a new line of long range jets, including the Global 7000 and 8000 to compete against Gulfstream’s forthcoming $60 million G650. Gulfstream also recently announced a $500 million expansion of its manufacturing facility in Savannah, Ga.

Select segments of the market are seeing an increase more than others. Some factors can be exclusively tied to who the buyers are for large cabin aircraft. It’s no surprise that much of the recent demand has come from Asia, more specifically China. Brazil, in stark contrast to much of Latin America, has also seen strong activity. Not far behind is the U.S., followed by the UAE and Europe to a much lesser extent.

Uncharacteristically, Asian buyers are mostly “first-time” buyers rather than “move-up” buyers. With consistent double digit growth rates, Asia is becoming the savior of private aviation much as it has become the driving force to pull the global economy out of trouble. Asian demand is clearly focused on new or near-new (2008 and up) large cabin aircraft.

The second defining element is more specifically tied to credit liquidity. Both U.S. and foreign financial institutions are still struggling with toxic loans on their balance sheets and are reluctant to offer financing for aircraft. Only the most credit-worthy have access to the lending market, and many financial institutions are hesitant to lend against any aircraft that is older than 10 years. In the fourth quarter of last year, it seemed credit markets for aircraft financing were opening up, but we have a long way to go. Newer large cabin aircraft in the $25 to $50 million price range have shown signs of recovery. However, midsize and smaller cabin aircraft are still struggling with oversupply and declining prices. These markets include Bombardier’s Learjet family, similar offerings from such OEMs as Cessna’s popular Citation family of jets, Hawker Beechcraft’s 900XP, and Gulfstream’s smaller cabin aircraft such as the G150 and G200, to name just a few. Typical buyers of these classes of aircraft have not returned to the market. Perhaps it remains to be seen if 2011 heralds in a return of these buyers and some stability in the medium-size market.

The last category spans all sizes of aircraft, but with one defining characteristic. It encompasses anything older than 15 years and especially anything built prior to the early 1990s. As previously noted, financial institutions have little desire to house an asset on their balance sheet that may have a default risk and zero chance of price appreciation. These would include stalwarts of the 80s such as the Gulfstream GIII, Bombardier’s Challenger 600/601 series, Dassault’s popular Falcon 50 aircraft and other such similar aircraft. As these aircraft approach 20 to 25 years old, they are well past their “sell by” date. Current owners will likely have to dispose of these aircraft for salvage value. Many will require maintenance equivalent to half or more than the value of the aircraft. A GIII that cost $6 million just four years ago may seem attractive at $1 million now, but maintenance costs can quickly negate these price discounts.

Is this the “new normal”? Although the recovery has not run according to plan, there is room for optimism. As it relates to corporate aviation, “the new normal” may end up being just another overused cliché.

Avjet, 818.841.6190, www.avjet.com

While Virgin Galactic’s first manned flight only took place this month, Lee Valentine, executive vice president of the Space Studies Institute in Princeton, N.J., expects that the cost of space tourism will significantly decrease in the next few years. At this weekend’s NewSpace 2010 Conference, he stated predictions that space travel will only cost $50,000 per seat by the year 2014. Currently, Virgin Galactic is charging $200,000 for a ticket aboard their SpaceShip Two, but their current company policy seems to embrace Valentine’s prediction having stated in the past that they have “managed to reduce drastically the price of getting to space and over time will reduce it still further.” In comparison to the first commercial space orbit in 2001 which cost millionaire Dennis Tito $20 million, their innovations in space flight have already managed to make space tourism more widely accessible.

However, should the novelty of space flight spur you to reserve seats sooner than 2014, Virgin Galactic is still accepting deposits for suborbital space flight. Since our last posting on the company, Virgin Galactic’s ventures into space have become less theory and more reality. Both ship models, the WhiteKnight Two and SpaceShip Two, had all systems evaluated during their 6 hour and 12 minute flight this July bringing the SpaceShip Two, a passenger ship, one step closer to commercial travel. On board, each passenger would have a clear view of the cosmos through two large windows, both overhead and alongside of seating, giving space tourist the option of remaining seated or floating in zero gravity. The ship boasts safety with a carbon composite construction and a new kind of horizontal air launch instead of a traditional ground launch. The new technique requires less fuel and allows for smoother landing.

And although the science of space travel limits amenities aboard the ship, Virgin has not abandoned their luxury style. As part of their deposit, aspiring astronauts purchase membership to “perhaps the world’s most exclusive club with privileged access to all aspects of the project as it progresses…from Astronaut Forums with Sir Richard Branson on his Caribbean island home or his South African game reserve to opportunities to tour Scaled Composites”.of new vehicles. For booking please contact one of the many accredited space agents across the globe or visit the Virgin Galactic website.

~Affluent Page

NewSpace Conference

The first UK-operated Bombardier Global Express XRS jet’s price has just been listed for approximately $50,000,000. From first glance and first takeoff, the XRS causes jaws to drop with decoupled engines that allow for a quieter ride and a top cruising altitude of 51,000 feet. The exterior sports two-toned fuselage and wing paint, and additional speed line/stripe accents, making it one of the sleekest looking machines in the sky.

The XRS’ interior recalls the opulence of the most expensive hotel rooms, with the spacious main cabin’s usable floor space (more than any long-range plane currently in action) accommodating anywhere from eight  to 19 passengers. And at an impressive top cruising speed of 662 miles-per-hour, the XRS can take you 6,150 nautical miles nonstop–perfect for extended travel. Unfortunately, you’ll have to interrupt bliss and land to refuel, but you’ll barely notice, as the XRS’ signature fast-fueling technology will have you back in the air in an unbelievably short amount of time.

For your convenience, this Global Express offers multiple floor plans. Options include a simple but luxurious baseline plan, and an exclusive limited edition (which includes an expansive sleeping area complete with a three-piece divan). In addition, the XRS provides personalized completion, with a crew ready to serve your needs down to every detail.

For more sale information, visit JamesList

~Affluent Page

Flight Options, a leading aircraft fractional ownership company boldly claims that its newest aircraft, the Phenom 300, literally “renders the competition obsolete”. ”The Phenom 300 must be seen to truly understand how it exceeds every other jet aircraft in its class,” says Jay Heublein, Vice President of Sales and Marketing.

Currently, the Flight Options team is on the road dazzling audiences with the 300’s unequaled performance and operational efficiency.  The tour, expected to last until mid-July, plans to hit such major cities as New York, Dallas, Chicago, and Las Vegas.

“We are extremely excited to travel the country and show people first-hand, a plane that integrates exceptional performance and spacious comfort at a fraction of the cost you would expect to pay for an aircraft of its caliber,” says Heublein. Some of the Phenom’s features include a spacious, lightweight cabin built to accommodate up to 7 passengers, the latest in advanced safety equipment, and a surprising $1,400 per hour rate, which creates an average saving of 25%.

For more info on tour dates, locations, and RSVP information visit http://www.flightoptions.com/phenom-tour.html

~Affluent Page

For the first time in the organization’s history, Hawker Beechcraft Corporation announced that they will display their entire commercial product lineup at this year’s European Business Aviation Convention and Exhibition (EBACE) from May 4-6. In addition, Hawker Beechcraft will unveil the highly anticipated Beechcraft King Air 350i and C90GTx.

To commemorate this historic moment, Hawker Beechcraft will showcase a newly renovated indoor hall exhibit located in Hall 7 #7080, which will incorporate the recently expanded Global Customer Support area. This innovative technology will allow customers to use computer modeling to help select a personalized aircraft interior.

The exposition will display ten new aircrafts: the Hawker 4000, the Hawker 900XP, Hawker 750, Hawker 400XP, Beechcraft Premier IA, Beechcraft King Air 350i, Beechcraft King Air B200GT, Beechcraft King Air C90GTx, Beechcraft Baron G58, and the Beechcraft G36.

As the flagship of the new product line, the Hawker 4000 proclaims itself the “most advanced and luxurious super-midsized business in the world.” From the crown jewel to their best-selling, Beechcraft has blended the top-of-the-line Honeywell engine with enhanced winglets to create the Hawker 900XP.

Hawker 750 is the most recent in Beechcraft evolution. Designed from the legendary Hawker 800 lineage, the Hawker 750 redevelops sophistication with a large-midsize cabin and reliable efficiency.

Although the Hawker 400XP may be the least expensive, do not mistake that for a lack of quality. The large cabin and flat floor provides one of the most beautiful interiors in Beechcraft’s Hawker line. On the other hand, the Beechcraft Premier IA strives in performance. Blending an avionics upgrade, the Premier IA produces an industry-leading combination of speed and effectiveness.

Setting the standard for aerial entertainment, the Beechcraft King Air 350i is now equipped with the Rockwell Collins Venue cabin management system and state-of-the-art Beechcraft FlexCabin capability.

Bolstered by the Pratt & Whitney Canada PT6A-52 engines, the Beechcraft King Air B200GT delivers one of the highest cruising speeds out of any of the Hawker line. In accordance to the groundbreaking theme of the Hawker line, the Beechcraft King Air C90GTx redefines climbing performance with a spacious cabin, spacious enough for seven.

The Beechcraft Baron G58, also known as “The Pilot’s Jet”, fashions a twin-engine piston aircraft, which is fully integrated with the Garmin 1000 avionics and GFC 700 flight control system. Also using the Garmin and GFC systems is perhaps the most prestigious high-performance single-engine piston jet on the market: the Beechcraft Bonanza G36.

[Hawker Beechcraft]

The difference between flying by regular airlines and flying by private jet is rather substantial. There are numerous benefits that a person could enjoy with the use of a private jet that aren’t available to them with regular airlines, even when it’s first-class travel. Travelling via charter private jet may be the only option for people who wish to maximize the advantages of private jet travel when they haven’t purchased a jet of their own. Even then charter costs are still rather expensive regardless of how much or how little travelling you do, so JetCharterPool.com provides a service that allows its members split the cost of chartering a private jet with each other, the same way a car pool would.

So how exactly does a Jet Charter Pool work? Well, Jet Charter services don’t charge per passenger, they charge a flat rate depending on the destination you’re headed and you have to pay to reserve the entire jet even if you are a party of one or two persons. With JetCharterPool.com members can split the costs of chartering a private jet with each other when headed towards the same location.

Basically members of JetCharterPool.com can locate others within their area that share the same flight commutes that they do and pool together with these individuals to reduce the costs of chartering a private jet. At the end of the day, the savings they enjoy are rather substantial and they get all the advantages that come with private jet travel.

JetCharterPool.com is a great resource for businessmen, as well as other regular enthusiasts who enjoy the advantages of private jet travel and wish to save on costs when travelling this way. Business entities can register for the service as well as individual members. Various affordable options exist for those who wish to make use of the service.

www.jetcharterpool.com

For the past decade, EBACE has brought together business leaders, government officials, manufacturers, corporate aviation department personnel, and all manner of individuals involved within the aspect of the business aviation – new business aircraft firms, avionics firms, handling organization, fractional providers, charter/lease companies, and titled aircraft resellers.

As in years past, the EBACE will display magnificent exhibits, such as the Static Display of Aircraft, Education Sessions, and Maintenance & Operations Sessions. Jointly conjoined each year by the European Business Aviation Association and the National Business Aviation Association, EBACE will be located at the superb Geneva Palexpo and Geneva International Airport. Covering nearly 100,000 square meters, exhibitions will be on display in seven separate halls. Dispersed among the vast airport landscape are nearly 300 exhibiting companies from around the world. In accordance the EBACE tradition, each major business aircraft company will unveil their newest product. For instance, one of this year’s upcoming highlights is the unveiling of Hawker Beechcraft’s entire 2010 product line. Included in this unveiling, Hawker Beechcraft will reveal the highly anticipated King Ait 350i and C90GTx.

After 10 AM’s ribbon cutting, the first day’s following schedule is the “Helicopter Static Display”, the “Bombardier Challenger”, the “Gulfstream M & O”, “Exiting the Economic Crisis!”, the “Bombardier Challenger 300”, “Aviation and the Enviorment”, and “Celebrating the Global Reach of Business Aviation.”

May 5th’s itinerary will consist of the following: the “Eclipse M & O”, the “Bombardier Global Series Technical Update”, the “Business Aviation Safety and Ongoing Safety Initiatives”, “Pilatus M & O”, the “SESAR Involvement and Perspectives”, the “Bombardier Learjet Update”, the “Flight Time Limitation”, the “Airports, Handling, and Ground Operations Committee Sessions”, and the “EASA OPS”.

Finally, May 6th events will feature the “Static Display of Aircraft Open”, the “Helicopter Static Display”, the “Airport Access”, and the “Emergency Response Planning Workshop.”

Although the major event occurs within Europe, attendees are consistently traveling from as far as Africa, Asia, the Middle East, and North America to just catch a glimpse at aviation history.

In a celebration of their tenth anniversary, Jetblue unveiled ICON Airtcrafts’s Icon A5 – a “bite-sized private jet with folding wings.”

Exhibited in perfect juxtaposition to the immense jet engines on display at J.F.K. Airport’s mini-aviation museum, the Icon A5 is small enough to fit into an average-sized garage. The lightweight carbon fiber airframe is outfitted with a wingspan of 34 ft, aircraft length of 22 ft, and minuscule aircraft height of 7.1 ft. Although the diminutive size only permits 60 pounds of luggage, the Icon A5 presents a cozy two-seater cabin bolstered with top-of-the-line technology, such as a GPS moving map, MP3 in-flight music port, LCD multifunction display, and removable side windows.

The Icon A5, which has deemed itself, “The very latest in sport aircraft design”, can reach a maximum speed of 120 mph, with a maximum traveling distance of 345 miles. Propelled by the steadfast 100 hp Rotax 912 ULS engine, the Icon A5 has an amphibious ability to take off from land or water.

Priced at $139,000, the Icon A5 will be available for purchase at the end of April.

[ICON Aircraft]