A Time for Streamlining

CARLSBAD, CA — Jet Source director of operations Jim Grindrod, Jr. says that charter traffic is off as much 35 percent in recent months, versus one year ago, which has led to cutbacks internally and an ongoing search for ways to cut costs. It has also led to slowing expansion plans, notably at the Henderson Airport outside Las Vegas.

Explains Grindrod, “It’s been coming. It took a little longer to catch up to us [in California], generally speaking; just as when the economy picks up there’s a lag. It takes some momentum before we actually start to see our business pick up again.”

Comments chief pilot Jay Brentzel, who has spent much of his career at the McClellan-Palomar Airport, about the cutbacks: “We’ve matched our capability with the market demand.”

The company operates eleven corporate aircraft under its Part 135 certificate, and also owns two fixed base operations on the airfield — Jet Source and Western Flight Services LLC. It had plans to add a base outside Las Vegas in 2009; however, Grindrod says that may be moved into 2010 as a result of the downturn.

“We were hoping to open a facility with aircraft management, charter, and a hangar,” explains Grindrod. “The goal was to open up maintenance and avionics there as well in the future. The county will not allow us to sell [retail] gas — only to our customers. We have an assigned lease in place.

“It seems like it’s going to be a good market, with McCarran being so busy. We saw a need for it. I’ve had several conversations with people who want to be based there. The fractionals are very interested in that area.

“This is all going back before the big downturn. Right now, Vegas isn’t doing so well.”

Jet Source works closely with fractional providers, says Grindrod, which are a key revenue source. Brentzel cites the company’s platinum rating status with Argus as central to the company’s relationship with Part 91 Subpart K operators.