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                          BUSINESSTRAVELER                                           Written and Produced by Mark Patiky

                                                                            Flying Higher Than Ever
                                                                            Corporate aviation is revolu-
                                                                            tionizing the way business is
                                                                            done as never before. The
                                                                            migration to private aircraft
                                                                            that began during the boom
                                                                            of the ‘90s continues.
    This transformation is being driven by a trio of factors: First   A COMPETITIVE ADVANTAGE
 is the growing accessibility that makes business aircraft benefits     Whatever draws them to business aviation, users quickly dis-
 more affordable, customizable and simpler than ever. Fraction-       cover the bottom-line benefits. According to NBAA (National
 al ownership programs, high-quality, global charter and new          Business Aviation Association) interim President and Chief Exec-
 membership card programs combine to give potential users             utive Officer Donald Baldwin, in the U.S. alone, more than
 more ways than ever to use business jets and turboprops              10,000 companies own over 15,000 business aircraft, nearly 6,000
 efficiently and economically.                                        more own fractional shares and additional thousands regularly
    Second is the realization of the myriad competitive advan-        charter business aircraft. These companies are seeking “efficient
 tages business aircraft bestows on its users. For example, a         time management and competitive advantages across the board,”
 business jet helped one software company grow eight times its        he says. They are doing so by taking more people to more places,
 initial size in less than six years.                                 confirming that time is money and employee time has immeasur-
    It allowed another company to slash costs by locating away        able value. “You are seeing whole new groups at various manage-
 from a metropolitan area while keeping in close contact with         ment levels having access to the company plane,” says Baldwin.
 customers and prospects in far-flung locations. And it’s enabled
 a conglomerate to attract and keep the talented executives who       AIR TRANSPORTATION FOR THE 21ST CENTURY
 propel its success.                                                    You’ll learn about all these issues in the following pages. This
    The third major factor driving this unprecedented phenom-         special report has a complete rundown of access options and
 enon is the growing inconvenience of commercial air travel.          the major providers behind them. You’ll meet a variety of busi-
 According to the Federal Aviation Administration, 2004               ness aviation users and see why they’ve become devout believ-
 is on pace to be the worst year in aviation history for flight       ers in the economy, efficiency and flexibility of private jet travel.
 delays. Chicago’s O’Hare airport alone had more than 58,000          You’ll discover the keys to profitability found in the thousands
 delays in the first half of the year. Add to that the missed         of communities across the nation that business aircraft make
 connections and long lines at security checkpoints, and it’s no      accessible today. And you’ll glimpse the new aircraft, services
 wonder many organizations have turned to alternative travel          and advances that will drive the growth of this market.
 solutions.                                                             “Historically, the public had a kind of two-dimensional view
Advertisement 2                       The Enlightened Business Traveler
of aviation: it was either airlines or it was   my financial services company, and            OWNING THE ULTIMATE
a small plane,” says James Coyne, presi-        we’re not going to miss a beat,”              PRODUCTIVITY TOOL
dent of the National Air Transportation         Verboon says. Traveling in spacious           While fractional ownership and mem-
Association. “In the last 10 years, aviation    comfort, the group can work en route          bership card programs have broadened
has gone to a three-dimensional model,          as easily as in the office, and with an       the options for accessing business aircraft
and the third dimension is private jet          enormous baggage capacity larger than         benefits, outright ownership is the choice
travel. This is going to be the dimension       any other business jet, they can carry        for more than 14,000 companies and
of aviation that defines 21st-century air       large volumes of samples, cases of            individuals across the globe that operate
transportation.”                                wines, displays for trade shows and           their own business jets and turboprops.
                                                copious amounts of luggage.                      The long-standing benchmark for full
                                                  Equipped with satellite communica-          ownership was 300 or more flight-hours
  FLIGHT LOG                                    tions, the seven people on board              per year; new realities, however, have
  Avacus Corporation                            will remain in constant touch by phone,       altered this calculation. The enhanced
                                                fax and data and receive news, weather        ability to offer an underutilized plane for
   Located on California’s Central Coast        and market updates at the touch of a          charter through a charter management
between rolling hillsides near San Luis         button. “We’re productive the whole           organization that can generate revenues
Obispo is Rancho Arroyo Grande                  way,” says Verboon, adding that client        has been the impetus for some new-
Winery. It is just one of an eclectic group     meetings are frequently held on the           aircraft sales.
of companies, ranging from                                                                                  Additionally, tax rulings,
cosmetics and law to construc-                                                                            now under Congressional
tion and financial services,                                                                              review for extension, have also
owned by Santa Monica, Calif.-                                                                            encouraged new-aircraft own-
based Avacus Corporation. With                                                                            ership, says tax attorney
business interests across the                                                                             Richard Johnson of Waller,
nation and beyond, Avacus                                                                                 Lansden, Dortch and Davis in
Chief Executive Officer Gary                                                                              Nashville, Tenn. “With com-
Verboon is usually in a hurry.                                                                            bined accelerated and bonus
His most essential business tool                                                                          depreciation, up to 60% of
is his Embraer Legacy. Based on                                                                           the purchase price can be
the highly successful Brazilian                                                                           deducted to offset income in
regional airliner, the Legacy,                                                                            the first year,” he says.
which has intercontinental                                                                                  Although many companies
range, features one of the largest                                                                        have the motivation and
cabins and baggage areas of                                                                               financial ability to buy, they
any corporate aircraft, yet is                                                                            may lack the inclination or
attractively priced like a midsize jet.         plane even after landing.                     resources to manage a flight operation
   Verboon truly discovered the impact a          In a company dependent on travel,           in-house, including crews, maintenance
business aircraft could have when his           Verboon is convinced that the business jet    and hangarage, as well as regulatory and
company became national in scope. Our           has enabled him to retain his most tal-       tax issues.
aircraft “have proven to be a very key          ented people. As for the effect on the           Notes Bill de Decker of Conklin &
factor in our ability to grow and be more       bottom line: “There’s no doubt in my          de Decker, the Boston-based business
productive than our competition,” he
says. “It is the only way to be effective
when you need to be in multiple cities in        “OUR GROWTH IS LARGELY ATTRIBUTABLE TO
a short time, none of which are easily           OUR ABILITY TO BE SO FLEXIBLE, SO NIMBLE AND
connected by airlines.”                          SO IMMEDIATELY RESPONSIVE.”

Space Ship                                       Gary Verboon, Chief Executive Officer, Avacus Corporation
  The Legacy, with its 13-seat cabin
and three separate compartments,                mind,” he says. “Our growth is largely        aircraft consultancy, “all of the necessary
enables Avacus to bring large manage-           attributable to our ability to be so flexi-   functions can be outsourced to a
ment groups to frequent meetings                ble, so nimble and so immediately             professional management firm that will
across the nation. “I’m going coast to          responsive.”                                  handle the ownership and operational
coast and back with the executives of                                                         responsibilities.”
Advertisement 4                        The Enlightened Business Traveler
Outsourcing Ownership Obligations                formance and range while lowering oper-       of the aircraft is not as important as the
   Many quality organizations outsource          ating costs. According to Chief Executive     condition, and I think a good example of
their ownership obligatons, but John             Officer John Smith, Jr., the combined         that is Air Force One.”
Thomas, senior vice president and general        cost of the purchase and retrofit was sig-
manager of Jet Aviation Aircraft Manage-         nificantly below the price of a new air-
ment, recommends dealing with the largest        craft of the same class.                        FLIGHT LOG
companies in order to gain much more                James Harrison, completions manager          Owens Corning
than just the professional skills essential to   at Jet Aviation Palm Beach, Fla., agrees
maintaining and operating the aircraft.          with that philosophy. His skilled crafts-        When Toledo, Ohio-based Owens
Because of its global presence and sizable       people completely transformed a similar       Corning, maker of building materials
managed aircraft fleet, Jet Aviation and         aircraft with a new exterior paint scheme,    and glass fiber reinforcements, was
others like it have the volume and buying        the latest “glass cockpit” digital instru-    forced to seek Chapter 11 protection
clout to negotiate substantial discounts on      mentation and custom designed and fin-        in the wake of asbestos liability lawsuits,
fuel, training, insurance, parts and other       ished cabin appointments. The result was      the company closely scrutinized its air-
services. These savings are passed on to the     looks and functionality that rival the        craft fleet. “As a debtor-in-possession, we
owner, resulting in lower operating costs.       newest aircraft. Harrison also specializes    have a duty to operate in the best inter-
Leading aircraft management companies            in bringing new life to large-cabin jets by   ests of all of our creditors,” says Owens
such as Jet Aviation, Executive                                                                           Corning General Counsel
Jet Management, TAG Aviation                                                                              Stephen Krull. Is the cost of
and PrivatAir also offer excellent                                                                        retaining a corporate flight
consulting services, guiding                                                                              department a good business
clients to the best choices in the                                                                        expense? “We ask that question
new or used market.                                                                                       on a regular basis,” Krull says,
   In addition, independent                                                                               “and the answer is always a
consultants like de Decker per-                                                                           resounding yes.”
form an invaluable service in                                                                                As a global company in a
demystifying the options. His                                                                             highly competitive industry
firm specializes in aircraft cost                                                                         with 156 manufacturing facili-
and operations analysis for                                                                               ties in 30 countries plus cus-
manufacturers, service providers                                                                          tomers and distribution centers
and consumers. “We have a                                                                                 worldwide, Owens Corning
software model that allows you                                                                            people have an extensive need
to lay out the budget and com-                                                                            to travel quickly and efficiently.
pare acquisition alternatives                                                                             Toledo is not in an airline hub
from a financial viewpoint,” says de             creating more spacious and useful interi-     city nor are most of the company’s desti-
Decker. “We present a complete analysis          ors with reconfigured seats, newly            nations like Amarillo, Tex., Anderson,
of that acquisition.”                            designed cabinetry, exotic wood veneers       S.C., Jackson, Tenn., or Elkhart, Ind.
   NBAA’s Baldwin notes that an impor-           and custom-designed carpets. “You dream       That means their Dassault Falcon 900EX
tant incentive for buyers is the wide range
of new aircraft choices and new tech-
nologies coming on the market that                “OUR COMPANY HAS HAD SIGNIFICANT GROWTH
enhance productivity and safety. On the           FROM MERGERS AND ACQUISITIONS, AND TIMING
other hand, high-quality, preowned air-           IN THOSE TRANSACTIONS CAN BE CRITICAL . . .
craft are particularly affordable and rep-        WE USE THE AIRPLANES AS MEETING ROOMS IN
resent significant value, particularly if
                                                  THE SKY.”
they are enhanced with refurbished inte-
riors and the latest avionics upgrades.           Stephen Krull, General Counsel, Owens Corning

Great Values in Old Favorites                    it and we can design it, build it, make it    and two Raytheon Hawker 800s are hard
   CRST, a Cedar Rapids, Iowa-based              functional and airworthy,” Harrison says.     at work every day, and each jet flies more
trucking and transportation services com-           Notes Walt Lamon, president of             than 800 hours per year. In the company
pany, bought a Dassault Falcon 20, retro-        Wyvern Consulting Limited, which              plane, most trips are an hour or two and
fitted new-technology engines and                audits the safety and quality of the          passengers arrive minutes from the plant
increased the aircraft’s capabilities, per-      nation’s business aviation fleet, “The age    or facility. Commercially, many of these
Advertisement 6                        The Enlightened Business Traveler
destinations take a full day or more. “We        trolled, so we can get a lot more done.”     like Jet Aviation’s Privileged Travel as the
generally have very high passenger uti-            The company has been operating its         best deal. Jet Aviation has one of the
lization per flight, and we’ve found that        own aircraft for more than 50 years with     world’s largest fleets of managed and
the per-person cost of transporting people       an unblemished safety record. The corpo-     charter aircraft.
from point to point is generally less            rate planes have consistently proven to be      Card programs are simple, says Wilson,
expensive on our corporate aircraft than         the best tools for the job. “Time and time   and you can use them to fly to or from
on a commercial flight,” says Terry              again we have been able to demonstrate       anywhere in the nation. “You buy a block
Smith, Owens Corning’s director of avi-          the value and justify the continuing role    of hours, you call one number and you
ation services, and that’s not even taking       of corporate aircraft within Owens Corn-     go,” he says. Although per-flight-hour
into account the value of their time.            ing,” says Krull. “They are very valuable    rates are slightly higher with the travel
                                                 company assets, and we are committed to      card, the trip cost is actually lower
Empowering Employee Productivity                 using them wisely.”                          because you pay only for occupied time
   It is not uncommon for the aircraft                                                        and not an empty return flight. With the
to make four or more stops per day,              CHARTER:                                     Jet Aviation Privileged Travel card, if you
and any employee with a compelling               THE EASIEST WAY TO FLY                       do make the return trip, then a discount
business reason to use the planes can,             Charter is one of the easiest ways to      applies, bringing the ultimate cost closer
says Smith. Last year nearly 7,000 dif-          gain business aircraft benefits. There are   to a traditional charter rate.
ferent passengers grabbed the
opportunity, saving the compa-                                                                           Growing Economy
ny tens of thousands of hours in                                                                         Demands Travel Efficiency
productive time.                                                                                           As the post-2002 economy
   In addition, the jets frequent-                                                                      gains steam, top charter firms
ly bring customers and prospects                                                                        like Jet Aviation, PrivatAir and
to manufacturing facilities and                                                                         Executive Jet Management
customer events, which they                                                                             (EJM) are reporting a strong
might not otherwise visit when                                                                          uptick in demand. While some
confronting commercial sched-                                                                           charter customers are purely
ules. “That can be a huge                                                                               seeking travel convenience and
competitive advantage,” Krull                                                                           comfort, a broad spectrum
emphasizes. On the flight, the                                                                          is searching for value and
relationship building, which                                                                            opportunity.
begins immediately, is a vital                                                                             Greg Thomas, PrivatAir chief
ingredient in developing new                                                                            executive officer, reports, “We
business. “Those intangible ben-                                                                        are seeing larger groups travel-
efits are very, very real,” he says.             no long-term commitments, capital            ing, and they are looking for bigger
   With its global reach and large, com-         investments or monthly fees. You can         10-, 12- or 14-passenger airplanes.”
fortable cabin, the Falcon 900EX easily          charter once a week or once in a while.      These charter customers are acknowledg-
links clients and manufacturing facilities       Either way, you pay only for what you        ing the value of middle management
half a world away. The sophisticated
avionics, high-tech safety enhancements
and satellite communications system               CHARTER IS ONE OF THE EASIEST WAYS TO
assure a safe, productive flight on the           GAIN BUSINESS AIRCRAFT BENEFITS. THERE
long transoceanic legs to Shanghai,               ARE NO LONG-TERM COMMITMENTS, CAPITAL
Beijing or South Korea.                           INVESTMENTS OR MONTHLY FEES.
   “Our company has had significant
growth from mergers and acquisitions,”
notes Krull, “and timing in those transac-       need when you need it.                       time, and their companies are ensuring
tions can be critical.” In that regard, the        For those who head out and return          that their people have the productivity
planes have proven to be incredibly effec-       within a day or so, on-demand charter is     tools to do the job. “Economically, it’s a
tive tools, he says. During those flights, the   absolutely the most cost-effective way to    very sound decision,” adds Wilson.
cabin presents a secure environment to dis-      go, says Steve Wilson, Jet Aviation senior     Al Pod, chief executive officer of
cuss confidential issues. “We use the air-       vice president and general manager for       Executive Jet Management, a NetJets
planes as meeting rooms in the sky,” Krull       charter. However, for frequent one-way       company, points out that most charter
says. “They are comfortable and con-             travelers, he recommends a card program      aircraft are not owned by the provider
Advertisement 8                       The Enlightened Business Traveler
but by independent companies that               “If it looks sloppy and unprofessional, it       Time-Saver Extraordinaire
aren’t fully utilizing the airplanes them-      probably is.”                                      “We’re also saving a tremendous
selves. These companies, many of                                                                 amount of time,” Heck says, detailing
which are America’s leading corpora-                                                             a “whirlwind” trip across the Northeast
tions, make their aircraft available for          FLIGHT LOG                                     followed by another around Florida. En
charter when they are otherwise not in            Korbel Champagne Cellars                       route, he picks up area managers and the
use. In many cases, that charter                                                                 Citation’s cabin becomes a flying confer-
provider manages the aircraft fully,               Time is as important to Gary Heck as it       ence room as they discuss shipments,
ensuring regulatory compliance, sup-            is to grapes on the vine and the Old World       sales and promotional programs. “By the
plying crews and providing training,            tradition of champagne production. Heck          time we land, we’re fully briefed and
hangarage and fueling dispatch, plus a          is chairman and president of Korbel              we’re right on top of everything,” says
host of other services. For the aircraft        Champagne Cellars, America’s oldest and          Heck. Trips like these would be impossi-
owner, charter can generate revenues to         number-one-selling premier champagne             ble commercially, he says. “By the time
recoup some fixed ownership costs and           producer. His “time-machine” is the world’s      I’m aboard an airliner, I can be landing
possibly reap tax benefits.                     fastest civilian jet, a near-supersonic Cessna   in Dallas after completing a full sales
                                                Citation X parked 15 minutes away at the         briefing en route.
Shuttles: The In-House Virtual Airline          Sonoma County Airport.                             “My time is probably the most valuable
   Charter providers are also                                                                               thing I have,” Heck emphasizes.
fielding renewed demand for                                                                                 The fast Citation X gives him
scheduled shuttle flights — a                                                                               the ability to be on the road and
virtual private airline focused on                                                                          still run the company. “It’s made
moving large employee-groups                                                                                our business much more effi-
quickly and efficiently between                                                                             cient,” he says.
plant and facility sites.                                                                                   FRACTIONAL OWNESHIP
   EJM runs several domestic                                                                                FRACTIONAL
shuttles using corporate aircraft                                                                           OWNERSHIP:
that include the large-cabin                                                                                FULL BENEFITS AT
Embraer Legacy, and PrivatAir                                                                               FRACTIONAL COST
operates a scheduled shuttle in                                                                             Fractional ownership remains
Europe for Airbus. Based on fare                                                                            among the most popular and
comparisons alone, the shuttles                                                                             efficient ways to take advan-
are less expensive, but most                                                                                tage of business aircraft bene-
compelling are the tens of thou-                                                                            fits. At a fraction of the cost of
sands of productive hours that                                                                              a whole airplane, fractional
can be saved annually.                             “It’s a tremendous business tool,” he         owners gain the tax advantages and full
   While the leading charter companies          says. “I just couldn’t do my job without         benefits of a business aircraft but without
provide global jet charter to anywhere in       it.” To maintain that close contact with         the operational demands. At their most
the world, achieving the highest levels         distributors and major retailers, Heck will      basic, fractional programs sell “shares” in
of safety and service, there are thousands      frequently visit three cities in a day, criss-   an aircraft, giving owners guaranteed use
of other charter companies that meet
only minimal requirements of the
Federal Aviation Administration. Caveat          “[OUR COMPANY JET] IS A TREMENDOUS BUSINESS
emptor applies.                                  TOOL. I JUST COULDN’T DO MY JOB WITHOUT IT
   Bob Breiling, whose company, Robert           . . . MY TIME IS PROBABLY THE MOST VALUABLE
E. Breiling Associates, tracks safety            THING I HAVE.”
statistics for the aviation industry, rec-
ommends questioning the operator                 Gary Heck, Chairman & President, Korbel Champagne Cellars
intensively about maintenance, pilot
experience and training, as well as ensur-      crossing the nation with a sales team of         for a set number of hours per year. A
ing they meet the safety standards of           six or more associates.                          sixteenth share, for example, the mini-
third-party auditing firms such as                 “This is a business where personal rela-      mum available, gives owners 50 flight-
Wyvern or ARG/US.                               tionships are essential,” he emphasizes. “You    hours per year and an eighth or a quar-
   One litmus test is to physically inspect     have to meet people face-to-face.” Using the     ter share provides 100 or 200 annual
the aircraft and the facility, says Breiling.   corporate jet, he can do that with ease.         hours of utilization, respectively. Now, a
Advertisement 10                     The Enlightened Business Traveler
host of new options makes fractional           sporting events are also part of NetJets     on varied requirements. And with its
ownership even more flexible and cost-         membership privileges.                       new “Global Access” program, owners
effective, enabling customers to select a                                                   can utilize aircraft in Europe and Asia
program that fits their needs precisely.       Fractional Ownership: Flight Options         that meet Flight Options’ standards for
                                                 Flight Options, which is backed by the     safety, service and consistency. These are
Stellar Service and                            Raytheon Company, offers a wide variety      available on a per-trip basis with no
Uncompromised Safety                           of preowned aircraft value priced at         monthly management fees or block-hour
   Four major companies with impeccable        lower-than-new acquisition cost, as well     purchases necessary.
service and safety records dominate            as brand-new Raytheon aircraft, includ-
the fractional marketplace: NetJets            ing the latest Hawker 400 and 800XP.
(which invented the idea), Flight              Chief Operating Officer Michael                FLIGHT LOG
Options, Bombardier Flexjet and                Scheeringa reports owners are steadily         Tom Sullivan, KFBK Talk Radio
CitationShares. Additionally, providers        transitioning into the newer aircraft. The
such as Avantair and PlaneSense offer          large-cabin Embraer Legacy, exclusively        “This is NewsTalk 1530 KFBK, Tom
fractional share plans that cater to region-   offered in a fractional share program by     Sullivan with you,” exudes the deep, rich,
al markets.                                    Flight Options, is gaining considerable      coffee-stained voice. Sullivan is Sacramen-
                                               attention. The 13-seat Legacy features a     to, Calif.’s number-one radio talk show
Fractional Ownership: NetJets                                                                           host. He is also KFBK’s busi-
   NetJets, a Berkshire Hathaway                                                                        ness editor, financial expert for
company, claims the largest                                                                             TV station KCRA and pinch
aircraft fleet and number of                                                                            hitter for KFBK alumnus and
owners. By year’s end, the com-                                                                         talk radio superstar Rush
pany will offer 16 different                                                                            Limbaugh. His “spare-time”
aircraft choices in the U.S. in                                                                         job is running a highly success-
the small, midsize, large-cabin                                                                         ful boutique investment firm
and ultra-long-range categories,                                                                        called The Sullivan Group.
and NetJets exclusively offers                                                                          When this perennially popular
fractional share programs in                                                                            radio personality is off the
Europe and the Middle East. The                                                                         airwaves, he’s often in the air
company reports particularly                                                                            aboard his business jet —
strong owner interest in the long-                                                                      a Flight Options, Cessna
range and ultra-long-range air-                                                                         Citation Jet — which he credits
craft, signaling an increased focus                                                                     for helping propel his success
on global markets.                                                                                      both on and off the radio dial.
   To service this growing need, NetJets       massive cabin with the comfort, ameni-         For Sullivan, whose schedule is intense,
introduced the Gulfstream G-IV and             ties and range of a large intercontinental   gaining travel flexibility is essential. “We
G-V to its European fleet and eliminated       business aircraft at the price and hourly    have numerous investment clients
ferry fees on flights between the U.S. and     cost of a midsize jet.                       throughout California, so I need to get
Europe aboard these aircraft, enabling a          Flight Options also introduced its own    out and meet with them and get back
U.S. owner to fly at regular rates to
Europe and then select among a variety
of NetJets aircraft for intra-European          “WHEN YOU HAVE ACCESS TO AN AIRCRAFT LIKE
destinations.                                   THIS, IT CHANGES THE WAY YOU DO BUSINESS
   NetJets offers owners and Marquis Jet        AND LIVE YOUR LIFE.”
Card members unique value-added ser-
vices, such as the Mayo Clinic Executive        Tom Sullivan, KFBK Talk Radio
Travel Response, which provides access to
free consultations with Mayo Clinic med-       two-year lease program that eliminates       quickly to take care of the broadcast side
ical professionals 24 hours a day, and com-    the up-front capital investment and five-    of my life,” he says.
prehensive medical assistance while aloft      year commitment that are standard in            Sullivan began chartering aircraft but,
(all flight crews receive training from the    basic fractional ownership programs. In      wise investment adviser that he is,
Mayo Clinic) if necessary. Opportunities       addition, Flight Options has a mix-and-      searched for the most economical solu-
to attend the Breeders’ Cup, the U.S.          match, 75/25 combo plan where one can        tion for his varied needs, concluding that
(golf ) Open and other music, arts and         buy shares in two different aircraft based   fractional ownership made the most
Advertisement 12                     The Enlightened Business Traveler
sense. He considered carefully before          usage was likely to be when buying into        tures brand-new, small-cabin to midsize
deciding on Flight Options. “I would           the program. This “requires customers to       Cessna jets including the CJ1, Bravo,
rather have fractional ownership, gain the     be clairvoyant,” in Knebel’s words.            Excel and now the midsize Sovereign
tax benefits and the predictability of the     Flexjet’s “Versatility Plus” was created,      with coast-to-coast range. “Our goal is
service and know whom I’m dealing              therefore, to enable the sale or purchase of   not only to compete in the marketplace;
with,” he says.                                unused or needed hours from an owners          our goal is to expand it,” says Chief
                                               pool. The program allows for making            Executive Officer Steve O’Neill. “People
Changing the Way You Do Business               incremental usage adjustments in one’s         are no longer very interested in traveling
   When he receives a call to pitch in for     specific aircraft and purchasing time in       on someone else’s schedule,” he says.
Rush, Sullivan departs from his home at        an additional aircraft without buying a        “The advent of not only fractional own-
5 a.m. on the show date, jets to Los           full share.                                    ership but also the jet card business has
Angeles and lands minutes from the               In another accommodation to market-          brought the price way down to allow
studio in Santa Monica, arriving just          place reality, Flexjet introduced “inter-      many more people to afford it.”
about an hour later. “Commer-                                                                              CitationShares owners fly an
cially, it would mean departing                                                                         average of 1.4 hours per trip
the night before, wasting a lot of                                                                      and carry an average of three
time in airports and staying in a                                                                       passengers. Thus, the small-
hotel,” Sullivan says. Now he’s                                                                         cabin Cessnas are perfect for
back in Sacramento, in front of                                                                         these missions. Although most
the microphone, just after 1 p.m.                                                                       owners fly regionally, those
   Since becoming jet propelled,                                                                        with transcontinental travel
Sullivan has doubled his frac-                                                                          needs can now upgrade to the
tional interest to 100 annual                                                                           midsize Sovereign.
hours because he is traveling                                                                              The company’s hot new
more than anticipated. “You                                                                             Vector JetCard program fea-
travel differently than you would                                                                       tures the same high-quality
just using the airlines,” he says,                                                                      Cessna fleet, but O’Neill is
describing trips that he wouldn’t                                                                       intent on controlling program
have made in the past. “I can go                                                                        growth in order to keep
anywhere within 1,000 miles,                                                                            the emphasis on high-touch,
have a meeting and still be back to take       mediate” share sizes, allowing share           customer-focused service.
care of my broadcasting duties. It would       owners to buy in increments of 25 hours
be impossible to do that by airlines.”         beyond the minimum 50-hour purchase
   The newfound freedom never ceases to        as part of the initial full five-year con-       FLIGHT LOG
amaze Sullivan. “When you have access          tract. Flexjet also created “Anytime             KHS Inc.
to an aircraft like this, it changes the way   Options,” where for a nominal fee, pro-
you do business and live your life,” he        gram features including upgrades and             Six of Reno Cruz’s highly valued
says. “Until you experience it, you just       downgrades can be guaranteed when              employees — project managers, engineers
can’t imagine what it’s like.”                 needed. Another unique program is “Five        and designers — are boarding the compa-
                                               Plus Plus,” which enables owners to            ny jet at suburban Waukesha County
Fractional Ownership: Flexjet                  extend their five-year contract for two        Airport outside Milwaukee. Once aloft, the
  Bombardier’s Flexjet has done much to        successive one-year periods.                   group will discuss a developing predica-
enhance the original fractional ownership
model. Its fractional fleet features
                                                A HOST OF NEW OPTIONS MAKES
Bombardier Learjets and Challengers
exclusively, including the new, entry-level     FRACTIONAL OWNERSHIP EVEN MORE
Learjet 40 and the new Challenger 300           FLEXIBLE AND COST-EFFECTIVE.
with a large, wide-body, stand-up cabin at
a super-midsize price tag. Vice President      Fractional Ownership: CitationShares           ment at a beverage bottling plant, and in
of Sales Robert Knebel attributes Flexjet’s      Originally a regional niche provider,        just over an hour they’ll be landing at an
strong growth to its “fine tuning” of its      CitationShares, owned by Cessna Aircraft       airfield near that facility. Minutes after
fractional programs based on owner             and TAG Aviation, is now national in           touchdown, they will meet with managers,
needs. Traditionally, for example, cus-        scope, offers the lowest-cost entry point      foremen and machine operators and begin
tomers had to guess what their annual          for new business jet ownership and fea-        to remedy the problem.
Advertisement 14                    The Enlightened Business Traveler
  Cruz is chief executive officer of          convincing a customer to take three           a fast, twin-engine turboprop with an
Milwaukee, Wis.-headquartered KHS             days out of his or her schedule flying        avante-garde design and roomy cabin.
Inc., one of the nation’s largest manu-       commercially to take a look at one of         The program is focused on serving cus-
facturers of beverage packaging equip-        your installations,” challenges Cruz.         tomers in regional markets where typical
ment. The company’s dedication to               Airline service from Milwaukee put          trips are 500 to 1,000 miles. The Avanti’s
“providing technology-driven solutions        Cruz at the mercy of a schedule that          short-field performance also allows it to
that boost productivity and increase          rarely matched his own. “We needed to         easily negotiate runways that would chal-
efficiency” explains why its newest busi-     be able to travel freely,” he says. Frac-     lenge other jets, opening access to count-
ness tool is a Cessna Citation Excel, or      tional ownership was KHS’s first intro-       less additional locations. “The advantage
at least an eighth share of one from          duction to a business jet. “I looked at       that we have is the Avanti,” says Avantair
CitationShares.                               charter and I looked at what we spend         Chief Executive Officer Steven Santo,
                                              on commercial travel and the time lost        who holds an exclusive on Avanti
Delivering First-Class                        there and said, ‘Gee whiz, this is the        fractional share sales. With the speed
Customer Support                                                                                       of a small jet (450mph) com-
    “We deal with most of the                                                                          bined with high fuel efficiency,
large beverage and food com-                                                                           a quiet midsize jet cabin and
panies throughout the United                                                                           low entry and hourly costs, the
States,” says Cruz, noting that                                                                        Avanti is drawing considerable
one brewery alone fills as                                                                             attention.
many as 16.5 billion bottles a                                                                           Santo points out that most
year with KHS equipment.                                                                               customers are first-time buyers.
That’s not the kind of client to                                                                       They quickly realize how effec-
disappoint. “When a machine                                                                            tive a business aircraft can be
is running 1,200 bottles a                                                                             and begin making trips that
minute and the line is down                                                                            weren’t practical in the past.
for an hour, that’s a lot of pro-                                                                      Because utilization is difficult
duction lost,” he says. Not                                                                            to gauge at the outset, Avantair
only does a quick response cut                                                                         customers can “borrow” up to
the customer’s economic loss,                                                                          20% of their hours from a sub-
it saves vast amounts of time                                                                          sequent year to meet unex-
for KHS employees, which translates to        best way to go.’” Now he finds it hard        pected needs. Santo also simplified bud-
astounding value, Cruz adds.                  to imagine being without his jet. “We         geting by creating a billing plan that
   In this situation with six aboard, air-    consider the time saved, how successful       spreads hourly usage evenly over a 12-
fares alone would have cost more than         we can be in reaching our ultimate goal       month period and combines that and
the company jet, but more important,          of the sale and how effective we can be       the management fee into a single
commercially they would have spent the        in meeting our customers’ expecta-            monthly bill.
better part of the day traveling and lost
a second day on return. “We hire our
people for their experience, skills and
                                               “WE HIRE OUR PEOPLE FOR THEIR EXPERIENCE,
talent,” says Cruz. “If they are rendered      SKILLS AND TALENT. IF THEY ARE RENDERED
ineffective by traveling, that’s poor uti-     INEFFECTIVE BY TRAVELING, THAT’S POOR
lization of their time.” And that’s not        UTILIZATION OF THEIR TIME.”
even considering the economic impact
of the customer’s production problem.          Reno Cruz, Chief Executive Officer, KHS Inc.
“You’ve got to provide that high level of
customer service,” and when you do,           tions,” Cruz says. “[With the company           While Santo has no plans to compete
Cruz says, “the travel cost is irrelevant.”   jet], we can provide better service and       with the major fractional ownership
                                              increase our profitability and growth.        providers in terms of program scale
Marketing Success Story                       Our experience with CitationShares has        and aircraft choices, what will remain
  Cruz also uses the Citation Excel as a      been terrific.”                               consistent with them, he states, is an
powerful tool to bring prospects from                                                       uncompromised focus on safety and
anywhere in the country to customer           Fractional Ownership: Avantair                service. “In this market, you can’t give
plants or KHS manufacturing facilities           Recent start-up Avantair offers frac-      just good service,” he says. “You have
and take them back that evening. “Try         tional shares solely in the Piaggio Avanti,   to be perfect.”
Advertisement 16                     The Enlightened Business Traveler
                                               they’re sitting in an airport or hotel room.    rates that are charged only for time
  FLIGHT LOG                                   And they are a lot happier if they can be       aboard. The card program also eliminates
  The Body Shop of                             home with their families.”                      major capital investments, long-term
  America Inc.                                   An important aspect of the company’s          commitments and usage restrictions
                                               success is the time Rosenbaum gains to          characteristic of fractional ownership.
   Headquartered in Jacksonville, Fla.,        spend with store managers and staff. In         And unlike charter services, card mem-
The Body Shop of America has always            addition, mall managers frequently call         bers don’t have to pay to bring a plane
been on top of fashion trends, but now         him to view vacant store locations. With        into position or return an empty aircraft
this clothier, with its selection of youth-    his newfound travel freedom, Rosenbaum          to home base. Many card programs fully
ful, hip-chic fashions, more than 166          can grab his construction chief and archi-      refund any unused portion, while others
company-owned stores and a staff of            tect and take off to view properties that       either have no time limit or credit
3,000, employs a fractional share in an        sound even remotely reasonable. “I make         unused value to a new card.
Avantair Piaggio Avanti to
shape the latest styles and                                                                             Buy It and Fly It
drive the company’s impressive                                                                             Sentient Jet pioneered the
growth.                                                                                                  Private Jet Membership con-
   “The Avanti makes real sense                                                                          cept, and since then, unprece-
because most of our trips are                                                                            dented demand sparked a
700 miles or less,” says Chair-                                                                          proliferation of other programs,
man and President Jerrold                                                                                each offering fascinating varia-
Rosenbaum who, with his wife,                                                                            tions. These travel card pro-
opened the first shop in 1973.                                                                           grams make nationwide access
Aboard the fast, 450mph tur-                                                                             to a business jet simple and easy.
boprop Avanti, Rosenbaum                                                                                 “We’ve taken the capital and
points out, “we have a cabin the                                                                         expense risk away,” says
size of a midsize jet and we get                                                                         Sentient Jet Chief Executive
there nearly as fast and at about                                                                        Officer Steven Hankin.
one-third of the hourly cost.”                                                                             Marquis Jet launched its
   Because Body Shop stores are                                                                          program in exclusive associa-
hot in college towns where commercial          deals that I probably wouldn’t have made        tion with NetJets using the full range
aviation is not, such as Athens, Ga.,          before because we can make a decision           of NetJets aircraft and services. Delta
Tuscaloosa, Ala., Wichita, Kans., and          right now,” he says. “It is great. I’m total-   AirElite has partnered with Bombardier
Waco, Tex., traveling by airline from a        ly sold on the Avanti.”                         Flexjet. Most recently, CitationShares
non-hub airport like Jacksonville is a                                                         announced Vector JetCard and Flight
grueling marathon. “Now we go direct,”         MEMBERSHIP CARDS:                               Options introduced JetPass, both of
says Rosenbaum. From local Craig               NEW AFFORDABILITY AND                           which are operated in-house and exclu-
Municipal Airport, he is in the air in 10      NATIONWIDE REACH                                sively utilize their respective fractional
minutes and can be in most of his stores         Today, the hottest trend in gaining           ownership fleets.
within two hours.                              business aircraft benefits are membership         Charter companies have also joined in,
                                               travel card programs, which uniquely            including Bombardier Skyjet with its
Preserving Valuable Assets
   Rosenbaum considers flying commer-
cially when on his own, but on many             “I MAKE DEALS THAT I PROBABLY WOULDN’T
trips, as many as five passengers, includ-      HAVE MADE BEFORE BECAUSE WE CAN MAKE A
ing buyers and managers or construction         DECISION RIGHT NOW.”
supervisors and architects, will accompa-
ny him. “I try to make intelligent busi-        Jerrold Rosenbaum, Chairman & President, The Body Shop of America
ness decisions,” he says. “If we can fly out
and come back the same day, it works out       combine charter and fractional owner-           Premier Fleet Jet Card, Jet Aviation with
great from an economy standpoint. These        ship advantages into a neat package.            Privileged Travel and Regal Aviation with
employees are my most important assets.        Similar to a debit card, members deposit        its Jet Concierge program. All of these
If you add up what I pay them, plus con-       a fixed dollar amount that covers hourly        companies use top-quality aircraft from
sider the productivity that would be lost,     costs in specific aircraft types and assures    their own charter fleets as well as a select
it is amazing. They can’t be working if        guaranteed availability and fixed hourly        group of other premium operators.
Advertisement 18                    The Enlightened Business Traveler
   Charter-based card programs offer a        Flexjet Learjet 31A, Learjet 45, Learjet 60     Caribbean or Mexico, and new Premier
variety of pricing options, and cards are     or Challenger 604. Card members have up         Fleet benefits enable members to fly to or
available in a range of dollar or block-      to two years to use their hours.                from Europe or convert North American
hour amounts. Fractional-based pro-                                                           flight-hours to European flight-hours and
grams sell cards in single-payment,           Membership Cards: Skyjet                        fly between 25 European countries.
25-hour increments, but they provide             Bombardier Skyjet offers the Premier         In addition, Skyjet offers a dedicated
the high-level service and other benefits     Fleet Jet Card. Members can select a block      customer service representative — a
that fractional owners receive.               of 25, 50, 100 or more hours in a small-,       Personal Concierge — as a single point of
   Although card programs garner con-         medium- or large-cabin aircraft at fixed,       contact who tracks your flight and looks
siderable interest from first-time users,     “no-surprise” rates. Increasing discounts       after your every need. Another Skyjet
they also appeal to fractional owners who     apply to the larger card denominations.         exclusive is that card purchases qualify for
need to supplement their annual alloca-       Skyjet also offers a 50/50 program for          credits toward Bombardier Flexjet or out-
tion of flight hours, company executives      those whose needs vary — half the time is       right private jet ownership.
who want to separate personal travel from     at a one-way rate and the other half at a
company business and aircraft owners          reduced, round-trip rate, assuming the
with flight needs that their own aircraft     aircraft returns to its point of origin.           FLIGHT LOG
can’t meet. In addition, for those consid-       For those who prefer an aircraft-               Regency Systems Inc.
ering a full-fledged fractional ownership     specific program, Skyjet developed the
program, the card arrangement that the        Premier Fleet Plus card, where members             When Michael Bernal, chief executive
various fractional providers offer is an      can opt specifically for a Learjet 60 or        officer of Regency Systems Inc. (RSI),
excellent introductory “try-                                                                              founded his Dayton, Ohio,
before-you-buy” opportunity.                                                                              information technology and
                                                                                                          computer services business, he
Membership Cards:                                                                                         realized that to be successful,
Marquis Jet                                                                                               he’d have to maximize the effi-
  Marquis Jet changed the                                                                                 ciency of his people and their
membership card model by                                                                                  time. Although RSI is a small
exclusively focusing on 25-hour                                                                           140-employee company with
increments in NetJets aircraft.                                                                           revenues of $15 million, it
Cardholders purchase 25 hours                                                                             has clients, facilities and staff
in any of 10 specific NetJets air-                                                                        dispersed across the nation,
craft models for a single fee and                                                                         often in hard-to-reach places like
gain the quality, consistency and                                                                         Rochester, N.Y., Huntsville,
advantages of NetJets fractional                                                                          Ala., and Anadarko, Okla.
ownership — including all                                                                                   Commercially, getting almost
owner services and Mayo Clinic                                                                            anywhere from Dayton was a
health benefits plus access to the                                                                        problem and typically consumed
NetJets fleet throughout Europe.              Bombardier Challenger 300. With a               a day or more, points out Bernal. “We watch
  Marquis recently added the globe-           12-hour advance reservation, your               our finances carefully,” he says, but, “the cost,
spanning Boeing Business Jet (BBJ) to         aircraft is available at any of 5,000 air-      in time, of doing business in other places got
the program. The Marquis Jet Card has         ports in the U.S. Customers appreciate          to be very painful.” With a small staff already
a one-year limit, but unused hours can
be rolled over into a new card. However,
most cardholders burn through their            “NOW I HAVE MUCH MORE TIME TO DEVELOP MY
hours in nine months or less.                  BUSINESS AND STILL PROVIDE QUALITY SUPPORT
                                               TO MY EXISTING CLIENTS.”
Membership Cards: Delta AirElite
   Delta AirElite, a Delta Airlines affili-    Michael Bernal, Chief Executive Officer, Regency Systems Inc.
ate, in an exclusive partnership with
Bombardier Flexjet, created the Flexjet       the simplicity and the short term,              multitasking, Bernal knew an effective
Membership program.                           says Skyjet General Manager Alexandre           business travel solution was a top priority, so
   For a onetime, all-inclusive fee, card     Monnier. “You buy it, you fly it and            he turned to Bombardier Skyjet and joined
members receive 25 occupied hours of          that’s the end of the transaction.”             the Premier Fleet Jet Card program. It was just
flight-time in their choice of a Bombardier     Skyjet aircraft can also fly to Hawaii, the   the ticket.
                                         The Enlightened Business Traveler                                                    Advertisement 19

   Bernal purchased 50 flight-hours in the
small-jet category. “It took care of all my         THE HOTTEST TREND IN GAINING BUSINESS AIR-
needs,” he says, but “I use this very sparing-
                                                    CRAFT BENEFITS ARE CARD PROGRAMS, WHICH
ly.” If only two are traveling, he may opt for
a commercial schedule, but with more
                                                    UNIQUELY COMBINE CHARTER AND FRACTIONAL
aboard, the jet pays for itself. On a recent        OWNERSHIP ADVANTAGES INTO A NEAT PACKAGE.
trip, five RSI managers jetted out in the
morning, conducted several important               Membership Cards: Jet Aviation                  10 hours as well as traditional 25- and 100-
meetings and flew back that evening. “On              Jet Aviation, which provides global          hour blocks. Rates are based on one-way
the flight home, we assessed everything that       aircraft management and charter services        travel, although 25- and 100-hour card
happened, had dinner on the plane and were         from 65 worldwide locations, recently           members receive a 40% discount on hourly
back at work the next day,” Bernal says.           launched its Privileged Travel program. The     rates for same-day and overnight round-
“That was efficiency beyond reproach.”             Jet Aviation plan is structured a little        trips (the latter on flights of two hours or
   Bernal shied away from fractional owner-        differently from most in that it offers three   more) if the passenger departs from and
ship because of the long commitment and            aircraft classifications based on range,        returns to the aircraft’s dispatch point.
necessarily large capital investment. On the       capability and aircraft age, rather than
other hand, traditional, on-demand charter         cabin size alone. The Classic program pro-      Membership Cards: Sentient Jet
was inconsistent, but with Skyjet, he acquired     vides slightly older, lower-cost, short-range      With the Sentient program, backed by
the best of both, including safety, quality and    aircraft. The Elegance program includes         T. H. Lee/Prudential, one buys a
service, plus guaranteed availability. “One call   midsize aircraft with transcontinental          Private Jet Membership that comes with
and everything is taken care of,” he says.         range, and the top-of-the-line, Avant-Garde     complete liquidity and no expiration
“Now I have much more time to develop my           program includes late-model, large-cabin,       limit. Jet cards for $100,000 or $250,000
business and still provide quality support to      intercontinental-range jets. In addition,       are available in either of two classes of
my existing clients.”                              Privileged Travel cards can be uniquely         aircraft — the standard group comprised
                                                   purchased in denominations of as few as         of slightly older airplanes and the
Advertisement 20                         The Enlightened Business Traveler
preferred group of newer models at                 Sentient jet to go anywhere. That’s             class of aircraft for specific missions.
slightly higher prices. Within each                unmatched flexibility.”                         It is particularly advantageous for those
group, fixed pricing with guaranteed                  Private air travel is by no means inex-      interested in a trial-size introduction to
availability is applied to small-, midsize-        pensive, but the firm’s verdict is that it’s    fractional ownership, he points out.
and large-cabin aircraft. One-way pric-            coming out well ahead. “If you consider
ing applies with a reduction on a round-           our hourly attorney’s fees and what that        Membership Cards: CitationShares
trip basis.                                        value is in comparison to the time that            CitationShares’ newly launched Vector
   Sentient Chief Executive Officer Steve          we save, we calculate that we save in a six-    JetCard program slices fractional ownership
Hankin emphasizes the highest levels of            figure range,” says Ferguson.                   benefits into 25-hour, prepaid, single-priced
safety. Aircraft are provided by a select                                                          portions, using its fleet of small- and mid-
group of the nation’s premier charter              Membership Cards: Flight Options                size-cabin Cessnas. The Vector JetCard is
providers that must meet stringent safety             Flight Options recently introduced its       among the most competitively priced card
requirements and be top-rated and                  JetPass travel card, providing access, in       programs in the industry. As in other card
approved by ARG/US or Wyvern. Each                 25-hour increments, to its fractional           programs, those who come into business
operator and airplane is also screened by          ownership fleet of Beechjets, Hawkers and       aviation through this route often find more
a Sentient team, and Sentient makes a              large-cabin aircraft, which includes the        use for an aircraft than anticipated.
final safety check prior to each                                                                              CitationShares Chief Executive
departure.                                                                                                    Officer Steve O’Neill says the
                                                                                                              average 25-hour card user runs
                                                                                                              through his or her hours in five
   FLIGHT LOG                                                                                                 to seven months.
   The Ferguson Firm

  Beaumont, Tex.-based attorney                                                                                 FLIGHT LOG
Tim Ferguson, a senior partner in                                                                               ASG Software
the Ferguson Firm, previously                                                                                   Solutions
owned several business jets, but
he prefers the flexibility and                                                                                   Six years ago, with first-year
simplicity of his Sentient Private                                                                             sales approaching $25 million,
Jet Membership program. “The                                                                                   high-tech start-up, Naples,
advantage is that Sentient has a                                                                               Fla.-based ASG Software
complete fleet of aircraft that I                                                                              Solutions embarked on an
can use, and I don’t have to pay                                                                               ambitious growth strategy of
for full-time staff pilots as I have had to his-   Embraer Legacy. JetPass, which is designed      internal development and acquisitions.
torically,” Ferguson says.                         specifically for those who need fewer than      The company, a leading developer of
  “In the legal business, while cost is an         50 hours of flight time per year, is fully      enterprise software, had a major obstacle
important factor, it is often more impor-          refundable and has no expiration limit.         to surmount: ASG needed fast, efficient
tant to be someplace at a specific time,” he       Flight Options Chief Operating Officer          air travel.
says, “and you often have to travel on a few
hours’ notice.” He wanted the assurance
that he could request the type of aircraft
                                                    “IF YOU CONSIDER OUR HOURLY ATTORNEY’S
that he wanted whenever he needed it and            FEES AND WHAT THAT VALUE IS IN COMPARISON
that it would be operated to the highest            TO THE TIME THAT WE SAVE [IN A BUSINESS
safety standards. Sentient Jet’s travel card        AIRCRAFT] . . . WE SAVE IN A SIX-FIGURE RANGE.”
program provided all of that and more.
  With the Sentient Private Jet Member-             Tim Ferguson, Senior Partner, The Ferguson Firm
ship program, there is no time limit on the
card and you can go one-way and return             Michael Scheeringa reports that card inter-        For any company on the move, travel-
whatever you want to, he says. “That’s a           est is particularly strong among former frac-   ing commercially was far too restrictive, so
big advantage.”                                    tional owners who are scaling back their        ASG Founder, President and Chief
  Ferguson regularly travels to and from           flight time, as well as organizations that      Executive Officer Arthur Allen purchased
rural areas across the state and around the        operate their own corporate aircraft fleets     NetJets shares in small-cabin Cessna jets
nation that lack convenient, frequent air-         but occasionally need a supplement at peak      and the larger Dassault Falcon 2000. The
line service. Now, he says, “I can use a           demand times or need to access another          fractional shares made perfect sense. The
Advertisement 22                      The Enlightened Business Traveler
growth strategy succeeded. Then new busi-       equipped galley, the spacious cabin is a com-     defense market analysis firm based in Fair-
ness opportunities increasingly drew Allen      fortable, private, secure mobile office suite.    fax, Va., forecasts business jet sales of 6,413
and his team overseas. He needed an addi-          Allen’s key ingredient to success is           aircraft over the next decade, about 40% of
tional solution.                                face-to-face contact. “When you’re a global       which will be in the high-end, long-range
   ASG began chartering a Gulfstream G-V        company, you still have to act like a local       market. According to Teal Group analyst
for long-range, global flights, which           company,” he says. “You have to be out            Richard L. Aboulafia, this explosive growth
frequently took Allen and six top managers      there with your customers and find out            is fueled by consumer backlash to depreci-
around the world on monthlong sales             what’s going on in the industry — it’s            ating airline service combined with
marathons. After one globe-trotting tour,       amazing what that really does.                    increased personal wealth, lower financial
stopping in eight countries throughout the         “If you use these airplanes as real business   barriers to entry (including fractional own-
Pacific Rim and South Africa, he evaluated      tools, they are very, very effective,” empha-     ership and membership card programs),
the results. “That trip alone generated over    sizes Allen. “It changed not only the way we      and new, more affordable jets. In addition,
$40 million in sales opportunities,” says       do business — it changed the size of our          new technology is bringing enormous
Allen, emphasizing that the                                                                                  capability to the cabin as well as
travel cost was merely a minor                                                                               unprecedented sophistication to
blip in the revenue stream.                                                                                  the flight deck, delivering safety
                                                                                                             enhancements barely possible a
Generating Global                                                                                            decade ago and far more advanced
Business at 500mph                                                                                           than new-generation airliners.
   With global travel hours final-                                                                              When the legendary Al Ueltschi
ly topping 400, Allen determined                                                                             founded FlightSafety Interna-
that his own plane made the                                                                                  tional, the world’s foremost busi-
most sense and ordered the latest                                                                            ness aircraft training organiza-
Gulfstream G550. The jet will                                                                                tion, he emphatically stated that
provide him with distinct areas                                                                              the most important safety device
for working and relaxing, seating                                                                            in the cockpit is a well-trained
that converts into six comfortable                                                                           pilot. That’s a proven fact. Safety
beds and a nonstop global reach                                                                              statistics compiled by Robert E.
of 7,700 statute miles — the                                                                                 Breiling Associates show that
distance between Naples, Fla.,                                                                               company-flown, jet-powered air-
and Beijing. Despite its size and capability,   company dramatically.” Today ASG has 58           craft with professionally trained flight
Allen says that the Gulfstream gives him        global offices, 7,000 global customers and        crews have a safety record that surpassed
the ability to land at smaller airfields with   sales topping $200 million. “We could never       those of airlines for the past nine years.
relatively short runways, and its new-          have done this without the aircraft,” he says.
generation avionics allow safe negotiation      “We would probably still be a $35 million         Revolutionary Developments in
of some of the world’s more challenging         company.”                                         The Cockpit and Cabin
airports, particularly in poor weather.                                                             In the cockpit, terrain and traffic avoid-
   In addition to the global Gulfstream,        A LOOK TOWARD THE FUTURE                          ance, satellite guidance and high-definition
ASG will continue to integrate the                The vitality of business aviation will          digital avionics including synthetic vision
NetJets Falcon 2000 into its complex travel     continue to grow, with more capable and           systems are some of the latest technologies
matrix, which makes the most sense for          efficient aircraft, new communication             to improve safety. Gulfstream’s Enhanced
moving his people between ASG’s many
domestic offices. The Falcon also provides
a formidable tool for bringing customers to      “WE COULD NEVER HAVE DONE THIS WITHOUT
facilities around the country instead of         THE AIRCRAFT. WE WOULD PROBABLY STILL BE
taking the Gulfstream on empty-leg flights       A $35 MILLION COMPANY.”
to and from ASG’s Florida base.
   On international trips, the Gulfstream        Arthur Allen, Founder, President & Chief Executive Officer,
serves an equally important, but often           ASG Software Solutions
underutilized, function on the ground, Allen
points out. “I frequently have customers        devices that enhance airborne productivi-         Vision System and military-style, heads-up
come out to the plane so we can have lunch      ty and new ways to gain affordable access         display, for example, enables pilots to look
and conduct business on board,” he says.        that vastly expand the customer base.             ahead and “see” terrain and runway details
With satellite communications and a fully         The Teal Group, an aerospace and                in zero visibility and at night.
Advertisement 24                      The Enlightened Business Traveler
   Inside tomorrow’s aircraft, new commu-       the first computer-controlled, fly-by-wire     named Pogo that will use new, small jets
nication devices and avionics equipment         business jet using advanced technologies       like the Adam A700 to bring private-jet
will make travel time more productive than      previously found only in military fight-       travel to the masses.
ever. We’ve already crossed the last frontier   ers and latest-generation airliners.              “We’re going to return access to the
of functionality as wireless broadband                                                         American traveling public that they don’t
connectivity is appearing in business jet       A New Airplane Category                        know exists,” promises Burr, “and that’s
cabins. Rockwell Collins introduced             Sparks the Imagination                         going to enable them to travel in a way that
significant enhancements to its popular           Meanwhile, an entire new class of aircraft   they never even hoped to travel.” Based on
Airshow moving map and cabin display            called VLJs (Very Light Jets) are in devel-    what we are seeing, Burr’s forecast applies
system, bringing real-time, text-based          opment, some with projected prices start-      in many more ways than even he himself
news, weather, sports and stock data via        ing close to $1 million and delivery dates     imagined.                                 I
high-speed connections; live TV; and other      within the next two years. These include
advances to the business aircraft                                                                       Written and produced by
cabin. “I know some people who                                                                          Mark Patiky
are doing day trading on their                                                                          Beehive Communications Inc.
airplanes, and that’s about as real                                                           
time as you can get,” says Tim                                                                          Associate writer:
Rayl, Rockwell-Collins’s senior                                                                         James Wynbrandt
                                                                                                        Principal photography:
director for cabin electronics.
                                                                                                        Paul Bowen
“People are using the aircraft
                                                                                                        Editor: Wesley Nam
cabin for real hard-core business
purposes, to work collaborative-                                                                        For further information contact:
ly with their folks on the                                                                              NBAA (National Business
ground, sharing presentations,                                                                          Aviation Association),
passing spreadsheets back and                                                                           Washington, D.C.
forth — things that just weren’t                                                                        202-783-9000,
possible before.”                                                                                       GAMA (General Aviation
   Honeywell has some new                                                                               Manufacturers Association),
                                                                                                        Washington, D.C.
products of its own that are                                                                            202-393-1500,
expanding the envelope for conducting           the Eclipse 500, the Adam A700, the                     NATA (National Air
business aloft, including cabin networks        Diamond D-jet and the Cessna Citation                   Transportation Association),
and high-speed data communication,              Mustang. Other names are entering the                   Alexandria, Va., 800-808-6282,
not to mention satellite phones and             competition such as Honda, which recent-      
fax, that make it possible to communicate       ly announced its intention to develop a
at 500 miles per hour from any place            lightweight jet engine with leading engine     Web Address Directory
on the planet.                                  manufacturer General Electric.                 Avantair
                                                                                               Bombardier Flexjet
                                                                                               Bombardier Skyjet
 CONTINUE TO GROW, WITH MORE CAPABLE AND                                             
 EFFICIENT AIRCRAFT, NEW COMMUNICATION                                                         Cessna
 DEVICES THAT ENHANCE AIRBORNE PRODUCTIVITY                                                    CitationShares
                                                                                               Dassault Falcon Jet
   “We are making a transparent transi-            These new VLJs sparked the imagina-         Embraer
tion from the office to the aircraft            tion of Donald Burr, who revolutionized
cabin,” says Eric Olson of Honeywell’s          commercial air travel two decades ago          Flight Options
cabin management systems division,              when he founded People Express. Burr
referring to his company’s latest develop-      sees these small business jets transforming
ments that will make Web surfing prac-          the transportation system of tomorrow.         Jet Aviation International
tical at DSL broadband speeds.                  Now he’s teamed up with Robert Cran- 
   Among new-technology aircraft devel-         dall, former American Airlines chief exec-     NetJets
opment is the large-cabin, long-range           utive officer, to create what he calls “the    Sentient Jet
Dassault Falcon 7X tri-jet, which will be       next big thing:” an air limousine service