"Air-Charter Business Taking Off Across U.S."

Tuesday, August 10, 2004

Air-Charter Business Taking Off Across U.S. ; The Industry Has Grown 25
Percent Since 2001, Offering Convenience, Luxury and a Way Around
Security Hassles and Rigid Airline Schedules. 
The Portland (ME) Press Herald


South Portland resident Erin Squibb could have easily fallen asleep last
year on her flight from Puerto Rico to the Virgin Islands. There was
reluctance by several executives who had used chartered services to
speak on the record with the Portland Press Herald/Maine Sunday Telegram
for this article. Reclining seats and red wine on ice are some of the
luxuries of flying on a $4,000 charter jet flight to New York from
Maine. 

South Portland resident Erin Squibb could have easily fallen asleep last
year on her flight from Puerto Rico to the Virgin Islands. Her seat on
the charter jet folded into a bed. 
 
But the view of the sparkling Caribbean fixed her attention and she
stayed awake, despite the luxury, she said. 

"The water was a beautiful turquoise and the islands looked like little
green spots," said Squibb, a University of Rhode Island student. "I was
really comfortable." 

Charter flights offer luxury and convenience, allowing those with
big-enough expense accounts or wallets to avoid the security hassles and
rigid travel schedules of the airlines. Those advantages have led to
substantial growth in this segment of the passenger air business, at a
time when many big-name airlines are struggling to survive. 

Despite the business benefits of saving time and hassle on travel,
flying the chartered skies is sometimes targeted as an unnecessary
corporate expense by company executives, board members and stockholders.
There was reluctance by several executives who had used chartered
services to speak on the record with the Portland Press Herald/Maine
Sunday Telegram for this article. Donald Bishop, vice president of
Portland-based Charter Ops LLC, noted that businesspeople sometimes fear
that such travel would be viewed as an unwarranted perk. 

But the charter business is definitely on the rise. New charter firms
are being formed such as Pogo - an air taxi service formed by former
American Airlines head Robert Crandall and People Express founder Donald
Burr. That company plans to offer point-to-point flights to airports
from North Carolina to Maine next year. The cost: $6.50 per mile. 

Existing charter-service companies in Maine and other states have seen
an increase in business. The U.S. charter flight industry has grown 25
percent since 2001, according to the Air Charter Guide, an industry
publication. 

"When people travel on charter flights and experience the conveniences,
they tend not to go back," said Fred Gevalt III, CEO of Air Charter
Guide. 

Reclining seats and red wine on ice are some of the luxuries of flying
on a $4,000 charter jet flight to New York from Maine. The Beechjet 400,
a commonly used jet for charter flights, has enough leg room that a
6-foot man won't worry about his knee poking someone in the back.
Passengers can easily recline their seats into a bed and dark blue
leather covers all of the seats, including the toilet. 

"If you have a certain lifestyle and you have the money, what are you
going to do with it?" said Tom Brocco, a pilot for Charter Ops LLC. "It
is expensive. It's a lot of peanuts." 

Unlike commercial airlines, passengers get to eat as much cashews and
almonds as they desire on the Beechjet 400. 

"You're on a commercial flight and you hear `bing' with the light
popping on," Brocco said. "You are now overseeing the Grand Canyon.
Passengers don't want to hear that. They want to do their own thing." 

These added benefits come at a hefty price compared to flying first
class on a commercial flight. A trip to Martha's Vineyard from Maine
costs around $5,000; one to the Florida Keys is around $12,000. Prices
also depend on the type of aircraft and the number of passengers. 

Once seen as transport used only by sports stars and celebrities, more
people are flying on charter jets who just want to have nice getaways,
said Eric Lake, director of sales and marketing for Maine Aviation
Corp., based in Portland. 

"It's not only for Hugh Hefner," he said. "People are more determined to
live the life they want to live. More people don't want to take eight
hours to get to the Hamptons. Life's too short." 

The luxuries associated with air-charter flights took on more value
after the 2001 terrorist attacks because people perceived scheduled air
service as more dangerous than private flights, said Gevalt. 

"The fear of safety from commercial flights has increased the charter
flight business. That has compounded the growth," he said. 

So has the relative ease of taking off. 

Charter passengers do not have to go through security checks or random
screenings at the gate. Charter flight companies perform background
checks during the appointment process and have a no-fly black book of
people who are not allowed to board planes. 

"It's not like we just wave a magic wand," said Bishop, of Charter Ops.
"We check their ID and then they're off. They get to avoid the main
terminal." 

Along with safety issues, being able to reach a final destination
without making numerous connections or only being able to land at a
nearby commercial hub also attracts many passengers, according to
operators. Charter planes use thousands of smaller airports where
commercial planes do not land. 

"Charter planes fly to 5,000 airports around the country," Lake said.
"Eighty percent of the commercial flights go to 22 hubs. Ask us what
town you want to go to and we will get you as close as we can." 

Being able to fly directly to a desired location has also caught on with
business travelers. There's also the attraction of being able to fly
when you want to fly - not when a certain scheduled flight is set to
depart. In business, time is money, anything that saves time is a
valuable commodity. Well-known businessman Steve Forbes named his
company jet the "Capitalist Tool." 

Cianbro Corp. owns its own plane, but sometimes uses charter flights for
employees, according to Dottie Hutchins, spokeswoman for the
construction company. The company does business from Maine to Virginia. 

"We utilize charter flights when the plane is busy," she said. "To be on
time is important. With Cianbro coming out of Pittsfield, there's not
too many opportunities to fly." 

A study by the National Business Aviation Association showed that
companies using charter planes for business travel are more productive
than those flying commercially. Despite the recent backlash on corporate
spending, business travel on private charters has grown 10 percent to 20
percent in the past two years, according to industry analysts. 

As more businesspeople fly charter, Brocco said, more of the general
public will book charter flights as the economy gets better. 

"The convenience is nothing short of incredible," he said. "When
checking in with us, you don't have to take off your shoes."


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