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Charter
airlines face strict FAA guidelines and rising challenges
By
Shawn Green |
Bill Baer, the owner of Baer Air an air carrier headquartered
on Merritt Island, will tell you running charter flights is no walk in
the clouds. Strict FAA guidelines, continued maintenance, rising fuel
and insurance costs as well as other factors make this a tough business
to get into.
“It’s a business that you have to be singularly focused on safety,” Baer
said. “Every decision you make has to be based on running a safe operation.”
Baer has been in the aviation business for more than two decades working as
a pilot for a commercial airline. He is still flies commercially, but also
opened
his own carrier in 2003. He said he made the decision to open his own company
following the horrific events of September 11.
“Frankly, I really didn't know what was going to happen with the airline
business,” Baer said.
Baer said charting a plane can eliminate the wait times and delays often experienced
when flying commercially.
“There is a greater interest (these days) in alternate modes of air travel,” he
said.
Of course with the added convenience of flying charter comes the added cost.
A customer chartering a small plane from Baer may expect to pay about $2,000
for a six-seat plane roundtrip from Brevard to Miami. Change that destination
from Brevard to North Carolina and the price jumps up to almost $6,000. Pricey
as these rates may seem to some, Baer said his clients are saving in time.
For instance, an executive can fly to three or four interstate meetings and
be back
at home the same day.
“It's incredibly convenient,” he said.
Baer, who is now in his third year of operations, said his business holding
its own, but believes it’s currently in a growth stage.
Tom Crevasse, who has owned Vintage Props & Jets for 14 years, knows a thing
or two about growing a charter business. His company, based in New Smyrna Beach,
is now primarily a scheduled commuter service that offers private charter services.
However, Crevasse now in his 60’s and boasting 26,000 hours in the air,
started out offering only charter service to his clients, and that he said,
just happened by accident.
Crevasse, who once made a living as a crop duster and then as flight school
instructor, said he never had any desire to haul people around. But, fate decided
otherwise,
and after he flew a couple over to the Abacos as a favor, Crevasse found himself
neck-deep business. It was all, he said, from word of mouth.
“ I didn’t ever want to do it, it just happened,” he said. “It
just kept growing and growing.”
Though he has done well, sometimes sending out as many as 12 and 13 flights
per day from Melbourne, Daytona Beach, New Smyrna Beach, and Ft. Lauderdale
airports,
Crevasse warns it is not an easy operation to run.
“There’s probably 50 charters (that he knows of) that have come and
gone,” he said. “They’re here today and gone tomorrow. For
everyone that succeeds there are probably 100 that fail.”
Part of the challenge, Crevasse believes, is in keeping up with government
regulations and paperwork.
“Everyday they put more and more stuff on you,” he said. “There
is a lot of stuff that you have to keep up on.”
Another challenge, according to Crevasse, is in providing good customer service
and ensuring that his clients are able to get where they need to be on time.
“ If my mechanics have to stay here all night long (to get a plane ready)
they do,” he said. “We do whatever we have to do to take one of
our customers.”
Being in this business, he said, takes 100 percent of your attention.
“It’s a pretty big weight on your shoulders. You can’t be out
there fishing, you’ve got to live, breathe, eat it and sleep with it.”
One way to offer charter flights to clients and still avoid the headaches of
owning a fleet is to do what Blue Star Jets does. Just broker the deal.
Blue Star Jets is a private jet charter brokerage company that offers national,
international, and interstate service to their clients across the globe.
Gary McCord, the director of sales at the company’s Miami office, said
using a jet broker can provide charter clients with a variety of flight options
and lower costs. For instance, McCord said using a broker takes the legwork out
of a client’s search for an available craft. The six-year-old New York-based
company works with hundreds of carriers all over the world. In addition, McCord
said, because they deal in high-volume sales, they are able to offer more competitive
rates.
Although the company might be able to negotiate a better rate because of its
large network, fuel costs are still rising and that is a charge passed along
to all aviation consumers.
According to the FAA’s Operational Evolution Plan, which examines efficiency
within the industry, U.S. airlines are expected see $5 billion in losses for
2006. The rising cost of jet fuel is a key factor in the industry’s losses.
The study states prices have more than doubled in the past six years. Since
the industry uses about 19 billion gallons of the stuff a year, according to
the
report, that means every 1-cent-per-gallon increase drives the annual cost
up $190 million for the industry.
Since March, when McCord took on the director’s position he said has seen
the cost of fueling jets increase by $100 per hour, making the cost to fly a
light jet at about $300 per hour. McCord said rising costs of fuel and insurance
might have some people opting to sell their own planes and instead signing up
for a “Skycard.”
The cards, used for airtime hours, may be purchased starting at $50,000 and
top out at $1 million. Cardholders receive price breaks and other incentives,
McCord
said.
“It’s like a debit card for jets,” he said.
According to McCord, the sky card program differs from the fractional jet type
of programs started in the 1980’s in that clients have more flexibility.
Fractional ownership limits customers to one type of aircraft, whereas cardholders
are able to fly, for instance, to New York in a light jet one day and then
cruise off to Europe in a Boeing Business jet the next.
“We only bill you when you fly, there are no monthly fees,” McCord
said of the card program.
Blue Star’s clients range from rock stars to executives, some opting
to charter flights rather than dealing with ownership.
“The rule of thumb is if you fly more than 500 hours per year than it’s
worth owning your own,” McCord noted.
For more information, please visit Vintage Props & Jets at www.vpj.com,
Baer Air at www.flybaerair.com and Blue Star Jets www.bluestarjets.com
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