High-rollers spur growth in luxury jet business

February 26, 2008 - 10:55AM

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Driven by demand from rich Middle Eastern clients and high-flying businessmen, the market for luxury private jets is booming, industry leaders said at the close of the Singapore Airshow.

“We have orders that will keep us busy until 2011-2012. Never in the past did we see such demand,” says Bernd Habbel of Germany’s Lufthansa Technik.

The story is much the same at Switzerland’s Jet Aviation, where Alain Thomann notes: “We have steady work until 2012.”

When it comes to turning a commercial jet with more than 100 seats into a flying palace with all the trimmings, the two firms are the industry leaders.

It’s a relatively hush-hush business: clients usually wish to remain anonymous, according to Thomann.

“They see their plane as their home. You wouldn’t want the inside of your house to be on display for all the world to see,” he said.

One client who does not mind the publicity is Saudi prince and billionaire Al-Walid bin Talal, who has bought an Airbus A380 superjumbo jet for his own personal use.

“He still has not decided who will do the interior. For the client, the process needs to move quickly, the quality must be the best on offer and of course, the price must correspond to his requirements,” Habbel explains.

For such a huge aircraft, never before kitted out for private use, the price will likely top 100 million dollars — that is, a third of the cost of the plane itself.

Depending on what features the client is looking for, the refitting could take as long as two years.

For other long-haul aircraft like the Boeing 747 or the Airbus A340, two-thirds of the orders for private refittings come from the Middle East, industry experts say.

“Their economies are soaring, boosted by oil revenues. In that region, people are truly fascinated by planes,” Habbel says.

For medium-haul jets like the Boeing 737 or the Airbus A320, new clients have emerged like expanding business jet operator NetJets, which offers fractional-share plane ownership and manages a fleet of more than 700 aircraft.

More traditional clients in the mid-range market include governments that put planes at the disposal of key ministers.

Before they approach firms like Lufthansa Technik and Jet Aviation, clients usually already have fleshed out a plan with their private decorators, which then have to get pass the firms’ engineers.

“We never do anything to alter the actual structure of the plane. For example, enlarging the windows is impossible,” Habbel says.

So what are the most outlandish wishes that have not been granted? A fireplace and a stable, Thomann notes. In-flight baths are also only a fantasy, as turbulence could send water spilling from the tub, causing short-circuits.

But decorators make many of their clients’ wildest dreams come true, installing lights to simulate the stars, carpets that look like desert sands, giant TV screens and systems that show passengers where Mecca is at all times.

Habbel recalls how one seemingly impossible request led to an innovation for all air travellers.

“One client wanted to watch the local TV channels in the country he was flying over. We managed to create the necessary technology, which later helped us figure out how to provide Internet access aboard commercial jets,” he says.

AFP

This story was found at: http://www.theage.com.au/articles/2008/02/26/1203788298895.html

High-flyers’ demand for private jets gives rise to record year

By Kevin Done

Published: February 13 2008 02:00 | Last updated: February 13 2008 02:00

Deliveries of business jets hit a record last year, supported by increasing demand in global markets, particularly outside the US.

Business jet makers led by Canada’s Bombardier, Gulfstream, Cessna and Hawker Beechcraft of the US and Dassault of France, delivered more than 1,000 jets for the first time.

With large order backlogs at most manufacturers and waiting lists of two to three years for the most sought- after jets, deliveries are forecast to remain high this year.

Private aviation has enjoyed an unprecedented boom in the past three years, as executives and rich individuals have sought to avoid the hassle, inconvenience and delays of flying through congested hub airports and to use business jets to increase executive productivity. The increasing popularity of private jets is also attracting growing interest from commercial airlines.

Lufthansa, the German flag carrier, is due to announce plans to be the first European airline to set up its own fleet of business jets to augment the services offered to its most lucrative premium customers.

The General Aviation Manufacturers Association said yesterday that worldwide business jet deliveries had risen 28.4 per cent from 886 in 2006 to a record 1,138 last year.

Alan Klapmeier, chairman of Gama, said “a strong worldwide market, especially outside North America, was a driving factor for general aviation in 2007″.

He said manufacturer backlogs were “strong and we think this bodes well for 2008 and the years beyond”.

Last year was the fourth consecutive year of growth since the trough of 2003, and according to the latest forecast by Honeywell Aerospace, a leading supplier to the sector, business jet deliveries are expected to rise to more than 1,300 in 2008.

Bombardier was the leading maker of business jets measured by the value of deliveries, while Cessna, a subsidiary of Textron, which dominates the segments for light and mid-sized jets, delivered the highest number of executive jets.

Demand is being stimulated by a surge in product development, and last year marked the first deliveries of significant numbers of very light jets (VLJ), an emerging segment, which is substantially lowering the price of chartering and buying private jets.

Eclipse Aviation delivered 98 of its Eclipse 500 VLJs last year, while Cessna delivered 45 of its entry level Citation Mustangs.

Embraer of Brazil is due to start deliveries of its four-seat Phenom 100 very light jets in the summer.

At the other end of the market Aerion, the US advanced engineering group, is seeking to reintroduce commercial supersonic flight.

Last year it said that it had secured its first letters of intent from potential customers for about 20 of its planned supersonic business jets, although it has yet to agree a manufacturing deal for the aircraft.

Sheikh to splash £250m on worlds most luxurious jet

Sheikh to splash £250m on

world’s most luxurious jet

By Allan Hall

in Berlin

A SAUDI sheikh has asked a German firm to make his A380 Airbus the most luxurious private jet in the world – complete with gold-leaf paintwork.

Prince Al-Waleed bin Talal bin Abdul Aziz al-Saud, a cousin of the Saudi Arabian king and one of the richest Arab businessmen on earth, has a fortune of £15 billion and is one of a handful of individuals to own an A380, the world’s largest commercial airliner.

He paid close to £160 million for the plane, which is built to accommodate up to 600 passengers. He is spending £90 million customising it to his own extravagant tastes.

Which company has been chosen by the prince to refurbish his jet has not been revealed. But German media reports that he has commissioned a concern in Hamburg, where Airbus Germany has its headquarters.

He has reportedly ordered the plane to be painted in gold leaf on the outside at a cost of £30 million alone.

Inside he is building a lounge to seat a travelling entourage of 25 trusted aides. He has ordered a dining room, seating 14 and panelled in marble, to be constructed next to a bar with curtains to mimic tents of the Arabian desert and a fibre-optic mosaic that will depict a shifting desert scene.

Where economy class usually begins, the prince has ordered a whirlpool bath and sauna to be constructed.

The whirlpool bath will have sensors fitted to tilt it to keep the water – and the prince – firmly in place if the plane hits turbulence while he’s taking a dip.

On the upper deck he has ordered a movie theatre with plush leather seats the colour of sand dunes, a gym with running machines and Nautilus exercise equipment and a series of bedrooms with his, naturally, being the most opulent.

Reports speak of the decor as being “Lawrence of Arabia meets Star Wars”, the centrepiece of the project being an enormous bed draped with silk to resemble a Bedouin tent.

All rooms have fitted bathrooms en-suite and are linked via an intercom to stewards based at the rear of the plane who will wait on guests throughout flights.

The plane will be ready in two years. Until is it finished the prince, who counts the Savoy Hotel in London among his many assets, will have to get around the world in his run-of-the-mill private 747 Jumbo.

“Prince Al-Waleed’s order means that Airbus’ sales success in the corporate jet market now extends from its smallest aircraft, the A318 Elite, all the way up to its largest, the A380 Flying Palace,” said John Leahy, Airbus chief operating officer for customers.

The full article contains 455 words and appears in The Scotsman newspaper.

Last Updated: 11 February 2008 11:07 PM

Identified Flying Objects Over Phoenix

January 27, 2008

Travel Bug

By JOE SHARKEY

PHOENIX — IT may be too late now, but if you moved quickly the other day you could have booked a three-night stay over Super Bowl weekend at the Ramada Limited Airport North in Phoenix for a cool $2,382.78.

You read that right. A Ramada wants $2,382.78 for three nights during the Super Bowl.

The swankier hotels and resorts in the Phoenix area, of course, have been booked for months, or even years, for next Sunday’s game. But the astonishing room rates that even roadside properties are demanding say something about the three-day spectacle the Super Bowl has become. Whatever it is to most of the 70,000 or so fans who will be there, it’s corporate America’s Mardi Gras, no expense spared, to the businesses that cater to them.

Consider the private jets. The Arizona skies will be full of them next weekend, as corporations and well-heeled individuals head to Phoenix with clients or colleagues in tow.

As of Friday, about 400 private jets had already made arrangements to fly in. Private-jet schedulers say that this is the most ever, and that an epic traffic jam could ensue in the skies.

“We’re getting booked like crazy,” said Steven M. Hankin, the chief executive of Sentient Jets, a big private-jet charter company that is booking Super Bowl weekend luxury packages. “We’re seeing a significant increase in demand for flights to Phoenix, more than we have for previous Super Bowls,” and a 50 percent increase from the event last year. A mere $9,399 gets you a 50-yard-line ticket, four nights in a four-star hotel, transportation to the stadium and other perks (private jet not included).

NetJets, the largest operator of fractional-share jet ownership programs, has a worldwide fleet of more than 700 private jets of all sizes. “We are forecasting 300 flights in and out of Phoenix,” at Sky Harbor and six area general-aviation airports, said Richard T. Santulli, the NetJets chief executive.

Luxury packagers and private-jet companies were ecstatic last weekend when the New York Giants and the New England Patriots emerged as the two Super Bowl contestants.

“The Giants in particular have a huge corporate fan base,” said Robert Tuchman, the founder of TSE Sports and Entertainment, a company in New York that arranges high-end corporate hospitality packages to events like the Super Bowl, the U. S. Open and the Kentucky Derby. “And 99 percent of our clients are corporations that are looking to entertain clients at these events.”

Many of those companies already have their own jets, although event planners will also arrange charters. Mr. Tuchman’s company has a basic $6,000 package that includes four nights at a four-star hotel, a game ticket, ground transportation and a spot in a celebrity golf tournament.

But hotels, golf tournaments, ground transportation, celebrity-studded parties and the like are easy enough to arrange in a major resort area. The biggest Super Bowl challenge, some organizers say, will be getting all those private jets in and out.

Nathan McKelvey is the chief executive of Jets.com, which has access to a fleet of 19 aircraft, mostly big ones like Gulfstream 4s. In general, he said, the cost for 10 hours of flying on a big private jet will run roughly $60,000, plus tax.

“The customers are mostly corporations entertaining clients,” he said.

In an interview last week, Marlene Purswell, senior vice president for operations at LegFind.com, a Jets.com online subsidiary that arranges jet trips, said Phoenix Sky Harbor International airport and several smaller airports in the area were still tabulating just how many flights to expect.

Two days before the conference championship games last Sunday, one of two major private terminals at Sky Harbor, Swift Aviation, had already logged requests for 490 arrivals and departures.

“And I’m sure there’s going to be a big spike in that number,” Ms. Purswell said.

TO prepare for the biggest traffic jam — Sunday night, when all those private jets try to depart at once — NetJets, Swift Aviation and several others are planning to set up reception centers and lounges to entertain private-jet passengers experiencing long waits. “We already know we’ll get a whole bunch of people arriving at once, and it will take some time to get those airplanes out,” she said.

From The Helium Report

Presidential Planes: The Candidates and their Private Jets

http://www.heliumreport.com/archives/969-presidential-planes-how-the-candidates-jet-on-the-campaign-trail

Written by Alec Rosekrans 01/18/2008

As the 2008 Presidential election heats up, you just may have noticed a proliferation of criss-crossing private jet contrails in the skies above our nation. The presidential candidates (and their ample staffs) are scurrying across the country from stump speeches in high school gymnasiums on one coast, to $10,000-a-plate fundraising dinners at the homes of wealthy supporters on the other, often in the same day. In the age of the 24-hour news cycle, private jets have become the unsung workhorses of U.S. presidential politics.So just how are the candidates getting around? In the campaign’s early stages, small- to mid-size jets seem to be the rule. Senator John Edwards has been frequently seen alighting from a Hawker 800. Former Governor Mitt Romney and Senator Hillary Clinton have both favored a number of Gulfstream models (rumor has it that Mrs. Clinton demands no less than a G-III.).

Senator Barack Obama relies on charters for his travel needs, though such flights aren’t without incident. Last November his chartered Gulfstream II landed in Des Moines, Iowa. The problem? It was supposed to land in Cedar City, some 100 miles away, where the Senator was expected at an event. In January, another chartered Gulfstream II carrying Obama and campaign staffers clipped the wing of a parked Cessna at Chicago’s Midway Airport as the candidate was returning to his home base after a campaign swing through Nevada.

During the final stages of the election, the front-runners typically adopt an official campaign jet, a wide-bodied model decorated with the candidate’s standard-issue red, white and blue logo. The Clinton camp made the switch in January and chartered a Boeing 737-800 to better accommodate the large staff, and slew of reporters, traveling with her campaign. On the first trip, Clinton dubbed the plane “Hill Force One.” Make no mistake, the candidate always sits in first class; the reporters on the other hand make due with coach.

Given the high cost of private jet travel, traveling expenses represent a significant portion of most campaign budgets. The Center for Responsive Politics has found that in the early stages of the 2008 campaign, travel amounted to seven percent of the total amount spent by candidates. That percentage is likely to go up now that a much exploited loop hole, which allowed candidates to fly on the corporate jets of their wealthy donors for the price of first class ticket, has been closed by Congress. Some candidates, like former New York mayor, Rudy Giuliani, have chosen to continue flying on their friends’ corporate jets, reimbursing them at the full market rate for the flight.

How do the candidates’ private aviation choices stack up value-wise against the potential options? A candidate traversing the nation ahead of the primaries would quickly burn through a jet card that sells flight time in 25 hour blocks, but fractional ownership could fit their needs. Then again, the surest bet might be to own an aircraft outright, like potential candidate Michael Bloomberg. If the billionaire mayor decides to toss his hat into the race, we’ll likely see his Dassault Falcon 900 descending in the next primary state.

Private jet travel soars still higher

From The Sunday Times

December 23, 2007

Farnborough airport wants to cash in by expanding and is calling for restrictions on flights to be eased

Dominic O’Connell

YOUR driver eases the Bentley past the security barrier, up a short access road and into a parking bay in front of a streamlined silver terminal. Uniformed staff greet you, and there’s time for a quick coffee in the lounge, which looks like the lobby of a five-star hotel. A short walk across the tar-mac to your plane, and you’re off.

For those enduring the hell of British airports during the Christmas getaway, this version of air travel must seem an impossible dream.

But for those well-heeled enough – or whose companies value their time sufficiently – this is the experience at TAG Aviation’s operation at Farnborough airport in Hampshire.

TAG, a Swiss-based private aviation company controlled by Saudi tycoons the Ojjeh brothers, took over the corporate aviation side of Farnborough – famous as the site of Britain’s first powered flight in 1908, as well as the home of the eponymous air show – in 1997.

The Swiss group has since built a slinky terminal, which has become the hot venue for high-powered business meetings. Rather than the traditional negotiations in a drab Heathrow hotel, tycoons now jet into Farnborough, use one of the terminal’s private rooms to hold their talks, and then fly off again in their private planes.

As well as the terminal, there are three hangars grouped under a distinctive wave-shaped roof. Farnborough is now the base for 46 corporate aircraft, ranging from small twin-propeller planes to top-of-the-range jets able to fly direct from the Hampshire airport to the west coast of America. A hotel will open next summer.

TAG’s investments have been well-timed. Over the past two years Britain has been at the centre of a boom in private jet travel. Several factors – the rise of fractional ownership schemes, a surge in purchases of aircraft by wealthy individuals, and a boom in the City – have combined to take the number of flights to historically high levels (see panel on right).

The airport is now working at almost full capacity. This year the number of flights has grown by a fifth to about 26,500. Under its current planning permission, the airport cannot handle more than 28,000 flights a year – and must close on Christmas Day and Boxing Day.

But this is not the only constraint on its growth. Flights at weekends and over bank holidays are limited to 2,500 a year – TAG wants to increase this to 5,000, staying within the overall limit of 28,000.

Earlier this year a request from TAG to increase the airport’s capacity was turned down by the local council. The company appealed, and a public inquiry followed. The decision now rests with Ruth Kelly,

secretary of state for transport, and Hazel Blears, secretary for communities and local government. An announcement is expected soon.

“We have significant demand in excess of the 2,500 flights over weekends,” said Brandon O’Reilly, chief executive of TAG Farnborough. “It is an artificial constraint on our operations, and we feel 5,000 would be more appropriate.”

TAG is dangling the carrot of more investment if it gets its way over weekend flights. “Our board has given approval for the construction of another set of hangars, but that is conditional on receiving approval for the increase in weekend flights,” said O’Reilly. If permission was not granted it would be “very frustrating”.

“It would not be making the best use of existing capacity, which is one of the government’s policy goals for aviation. As well as contributing greatly to the UK economy because of the type of travel it facilitates, Farnborough is taking the pressure off larger airports, which are then free to concentrate on commercial flights.”

Easing of the weekend restrictions is not the limit of TAG’s plans for growth. It is in the process of drawing up a “masterplan” for the airport’s development that is likely to propose an increase in the total number of flights permitted annually. The plan will be published for public consultation in the first three months of next year.

Even if its plans are frustrated, TAG is unlikely to pack up and leave. A fortnight ago it bought the freehold for the 581-acre site from the Ministry of Defence for an undisclosed sum.

“There was always an understanding when we took the head lease in 2003 that if the operations were successful we would take full ownership at some stage, and this was the right time. It removes any uncertainty about the future of the airport – people were aware that the freehold was with the Ministry of Defence and some assumed they might take it back at some stage, but that has now been ruled out.”

The change in ownership does not, however, mean an end to the air show. Part of the freehold deal is that TAG leases space to the Society of British Aerospace Companies, which organises the biennial jamboree.

BOOM WILL GO ON

THE SUBPRIME crisis may be cutting a swathe through the banking community and threatening recession in America, but there is – so far – no sign of slackening in the recent extraordinary growth in private jet travel.

According to Honeywell, the American aerospace company, almost 900 jets were delivered last year. This year the figure will rise to 1,000 and over the next decade Honeywell expects 14,000 new aircraft to come into service, the same number that are currently in the world’s entire fleet.

Despite some industry caution, a rapid growth in the number of high-net-worth individuals and a reluctance among some companies to see top executives tied up for hours at commercial airports makes a downturn anytime soon seem unlikely.

“The whole tenor of the market has changed,” said one charter broker. “We are now busy all the time, and it is increasingly difficult to find aircraft to meet demand.”

Wealthy’s desire for luxury rises unabated

By Sharlene Goff

Published: December 10 2007 03:20 | Last updated: December 10 2007 03:20

Wealthy people’s taste for luxury has been untarnished by the recent economic slowdown according to new research, which found more people were willing to splash money on private jets, concierge services and personal shoppers.

The latest survey from Barclays Wealth says that rich people increasingly want to buy luxury services to save them time and stress.

Barclays said the use of private jets was set to increase significantly. More than half of the survey respondents in the US and Canada, Italy, Singapore and Portugal said they planned to fly privately rather than first class on airlines.

Gerard Aquilina, head of international private banking at Barclays Wealth, said the use of private jets had increased in popularity as they enabled people to bypass airport and security delays. “The idea of wealth goes further than the ability to buy goods and services. It also provides a sense of empowerment and control,” he said.

The survey shows that more wealthy individuals plan to take advantage of personal shoppers, fitness trainers and concierge services.

Barclays said for many wealthy people the biggest luxury was having more time. Two-thirds of respondents believed their wealth had brought them more leisure time, mainly because they enlisted the help of a number of people to run their day-to-day lives.

Mr Aquilina said there had been a “dramatic” rise in the number of wealthy individuals using family offices to manage everything from their investment portfolios to travel arrangements.

“There is a growing desire among the wealthy to have something unique and something that to some extent allows them the freedom to control time,” he said.

Of the respondents with assets of at least $3m (£1.47m), almost 80 per cent employed a butler and a chef, more than three-quarters used a personal stylist and more than half consulted a personal shopper, personal trainer, dietician and travel consultant.

The survey showed there was a rapidly rising demand for bodyguards around the world, particularly in some parts of continental Europe, Asia, South Africa and the Middle East.

Barclays found that people’s perception of wealth had changed.

More than a third of the respondents thought people needed liquid assets of at least $10m before they were considered rich.

Barclays said the rising cost of luxury goods and services meant people needed this much wealth to feel secure and able to enjoy their money.
● Storm clouds may be looming over the rest of the property market, but wealthy buyers are queuing up for rural estates in Scotland, Andrew Bolger reports. CKD Galbraith, the property consultant, estimates the overall estates market in Scotland has about 100 potential buyers on a “waiting list” who are ready to spend collectively about £300m. Most of the interest came from continental Europe.

Copyright The Financial Times Limited 2007

ElleJet Recognized as one of the Top Private Jet Travel Websites

ElleJet Aviation Services was recognized by Business Traveler Magazine as one of the top private jet travel websites.

We at ElleJet appreciate the recognition. Special thanks to our design team for constantly improving our website for the best possible user experience.

ellejet-article.pdf

Supersonic Private Jet

Any aviation enthusiast or very busy international businessman will enjoy this.

http://gizmodo.com/gadgets/supersonic-private-jet/first-supersonic-private-jet-sold-to-obviously+very+rich-guy-325751.php

Gulfstream G550 -

Not only is this an incredible corporate video. But it provides yet one more reason to fly private.

http://www.gulfstream.com/_videos/collier_2003/collier_wmv_high.htm