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A new type of charter lets clients fly on a sleek private jet without having to buy one--or having to buy into a so-called fractional-ownership program. These services do, however, make customers prepay for blocks of flight time. Among the biggest carriers of this type are Delta AirElite Business Jets, a wholly owned Delta subsidiary based in Cincinnati, Ohio; Marquis Jet Partners of New York City; Sentient Private Jet Membership of Norwell, Mass.; and Bombardier Skyjet, based in Fairfax, Va. Through Delta's AirElite service, which launched in February, customers pay a minimum of, say, $144,500 for 25 flying hours in a six-passenger Lear 60 business jet--and get frequent-flyer miles on Delta. These providers tend to specialize in travel within the U.S.--though if you want to go to London, some operators, such as Delta AirElite, can get you there too, on a larger private craft. These companies ooze discretion, and while they don't disclose the bottom line, they all report "significant interest."
A New Business Class
The international aviation industry is closely watching Lufthansa's new all-business-class service from Dusseldorf, Germany, to Newark (offered in partnership with PrivatAir), and some are even calling it the "new Concorde." The flight's VIP service and the absence of crying babies and scruffy backpackers have pleased the route's early passengers and encouraged the airline to expand service to Munich from Newark and schedule a Chicago-to-Dusseldorf flight starting in June. The carrier will not say whether the route is profitable, but it has been flying at a healthy 60% of capacity. Among U.S. business travelers, Indigo is attracting almost as much attention for its clever use of secondary airports like Teterboro and, starting in June, White Plains, N.Y. Indigo CEO Pete Pappas, a longtime American executive, is a seasoned pro who sweats the little things--like promising a 6-ft. 8-in. frequent flyer a seat in the spacious exit row for all his trips.
Discounters
AirTran and JetBlue are bucking industry trends by making profits and adding flights, at the expense of the major airlines. Frontier and ATA (based in Indianapolis, Ind.) are trying new routes too, but their finances are under pressure. Frontier posted a $23 million loss for fiscal year 2003, its first loss in five years, and ATA reported a quarterly net loss of $11 million, though it still managed a slim operating profit. North American flew some U.S. troops during Gulf War II and the Afghanistan campaign, and it has also kept its civilian business going strong, especially on high-volume feeder flights to major international carriers like El Al. Allegiant Air, based in Las Vegas, specializes in discount flights to Sin City and has announced three new routes in the past two months: to Lansing, Mich.; Des Moines, Iowa; and Denver. Song, owned by Delta, is just off the ground, flying from New York City's J.F.K. to three points in Florida: West Palm Beach, Tampa and Orlando. Spirit has been around since 1992 and specializes in low fares to 14 destinations. The privately held carrier hasn't divulged financial details but claims it recorded an operating profit for the first quarter of 2003.
The Wild Blue Yonder