Saturday, January 20, 2007

Three major obstacles for fractional operators

BusinessWeek published and article about three major obstacles for fractional operators such as NetJets and Flexjet.
Here their are:

Discounts
Discounting the fares in a futile attempt to get enough customers and fly the jets just like the commercial planes was not a good idea. That's elite market with high cost per ownership and maintenance so the companies were hitting red all the time.

Maintenance
Lack of proper maintenance and a high load with empty legs which accounted for more than 25% of overall flying time proved disastrous for some light jets such as Hawker 1000 and Cessna Citation Ultra. Their were often grounded and unable to fly to meet demand spikes on certain dates like pre-holidays.

Peak time shortcomings
When demand hit, companies had to charted additional jets to meet their contractual obligations.

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