Private aviation

South Florida CEO, Nov, 2004 by Joan Gonzalez

IN TODAY'S BUSINESS WORLD, TIME IS MONEY, convenience a necessity and security a top priority. Those three concerns are no less important in the rapidly expanding world of private aviation, which has become a popular option to commercial travel.

South Florida is home to several prime executive and commercial airports as well as many companies offering charter, fixed operation and fractional aircraft services, which all cater to corporate and executive needs.

"General aviation has the advantage over commercial, as we have access to 5,500 airports in the US while commercial airliners only have access to around 600," says Fabio Alexander, chief executive officer of Miami Executive Aviation, which is based at Opa-Locka Airport. "There has been a paradigm shift and frequent business flyers are using us more because of the value of time, convenience and control over security. It takes a lot of anxiety away and nothing can impede on time when you need to be at a certain location at a certain time."

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Alexander adds that the delays that happen in the commercial airline world are less likely to happen in the private aviation world and the companies themselves are more stable. Moreover, private aviation is no longer for the super wealthy and is becoming more competitive as the cost of operating airlines becomes more expensive. "We provide a variety of products, from charter to fractional to managing your private craft in order to offset expenses," he says. "Also, the only time you have to take your shoes off is after you are on the plane and then it's optional."

One of South Florida's largest and most complete flight service operations. Alexander launched Miami Executive Aviation in 1996 as "a family of service oriented companies." With a team of 45 employees that specialize in customer service, information technology and aircraft operations, Miami Executive Aviation's clients are culled mostly from affluent South Florida business leaders that include some of the biggest real estate developers to auto dealers, and insurance company and entertainment executives.

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The case for private aviation has never been stronger, Alexander says, because "quantifying and protecting your two most important assets--people and time--while maximizing efficiency, is critical to those who understand the value of private aircraft use, whether it's for business or personal needs. It is no different than years ago, when some people took the bus and some took a taxi. With general aviation there are less people taking the bus than flying the air taxi. It's all about people and time."

And people are taking notice, thanks to aggressive marketing by the company. For example, during the 2003 Ford Championship PGA golf tournament at Doral. Alexander teamed up with the Cessna Aircraft Co., which hauled a Cessna business jet through Miami's streets and parked it near the 15th hole/Par 3 for display. Tournament players were also offered the opportunity to win $300,000 worth of flight time in a Cessna business jet.

* Flying Right

To keep the momentum going, private aviation companies are busy inventing new ways to present their products and services. These companies have realized that, as in the retail clothing world or any other commodity, one size or product does not fit all. But choosing among the dizzying array of flying options can confuse even the most seasoned traveler. Executives considering switching to private aviation for their travel needs should first learn the lingo, because as aviation companies look for new ways to spin their services new words have cropped up to describe old phrases.

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Fractional Ownership is akin to "timeshares" in the real estate world. You own a piece of the aircraft along with other owners. It is like owning a condo where you own a section of the building (an apartment) but are also on the hook for part of the maintenance, upkeep and management of the entire complex.

Time Cards often take on the identity of a company and can differ in their application. At Marquis Jet, for example, it is called the Marquis Jet Card and at Blue Star Jets Inc. it is the sky Card. The principal behind time cards is more or less the same as a prepaid phone card, just a lot more costly because you are buying hours on a private aircraft. With the Marquis Jet Card, increments of 25 hours can be purchased and need to be used within one year. Prices start at around $100,000. Blue Star Jets offers five card levels requiring deposits ranging from $50,000 to $1,000,000.

Blue Star Jets is privately owned, well funded and with deep enough pockets to have built an empire for itself. Managing Partner Craig Seigel, from his Military Trail offices in Boca Raton, says the company provides private jets and has access to more than 4,000 aircraft worldwide, from helicopters and turbo props to jumbo jets.

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"And we fly out of all airports--any jet, any time, any place with four hour notice," Seigel says. "We match the aircraft to the mission. We give you exactly what you want, when you want it and do not lock you into a number of hours or a specific aircraft."