Business Jet Charters Increasing 10 Percent a Year

NOVEMBER 30, 1999

The number of business executives chartering jets -- for both business and pleasure -- has grown by about 10 percent a year for each of the past two years, say officials of KaiserAir, Inc., one of the oldest business jet management companies in the world. KaiserAir handled about 150 charters last year, said Sandy Waters, vice president, business development, of the firm based at Oakland International Airport's North Field.

"We are seeing a growing recognition of the value of time," said Waters. "Because today's executives place such a high value on their time, we also are seeing an increase in the number of charters for pleasure as well as for business trips."

If an executive spends more than 100 hours a year on airplanes, it typically is more cost-effective to use chartered jets, according to a recent study by Business and Commercial Aviation magazine.

A chartered flight means that an executive can travel on his or her own schedule, without worrying about possibly cutting a meeting short to make the last plane of the day or spending time waiting at airport check-in counters or baggage claims. In addition, because of the large number of airports that handle smaller planes, a charter usually takes a business executive much closer to his final destination than a commercial flight.

"Having your own aircraft virtually eliminates the expense of unscheduled hotel stays," Waters added. "When you add in these factors, a chartered jet often becomes the most economical way to travel."

Private charters are particularly popular for California destinations such as Palm Springs and Lake Tahoe or fishing, hunting and skiing destinations in Montana, Colorado and Idaho, which have no direct flights to and from the Bay Area. A trip to Palm Springs by charter jet takes only 90 minutes, while it stretches to almost five hours by airline if it is necessary to allow time for check-in and connections. Charter flights are the best and occasionally the only way to get to many desirable pleasure spots in Western United States.

Kaiser Air offers a charter fleet of five jets, ranging from Citations to Gulfstreams. It also manages 14 business jets and two helicopters and operates an Executive Terminal for the use of private planes at Oakland International Airport's North Field. Thirty-three of Fortune Magazine's Top 50 corporations make KaiserAir's Executive Terminal the base for their aircraft when they conduct business in the Bay Area.

The Executive Terminal, which operates 24 hours a day seven days a week, offers fuel and maintenance service. In addition, there is a business center with a conference room, fax machine and modem access, and a concierge to take care of needs ranging from limousines to gourmet catering and hotel reservations.

KaiserAir, Inc. dates back to 1946 when it began as the flight department for the Kaiser companies founded by the late industrialist Henry J. Kaiser. In 1974 Southern Pacific became the first corporation outside the Kaiser companies to become a client of KaiserAir. Gradually, KaiserAir added more corporate clients, and in 1980 the Kaiser flight department management purchased the operation from Kaiser Steel.

Source: Business Wire

Additional information is available at KaiserAir