New FBO On Isle Of Man Offers Savings On EU-ETS And Handling Costs For Business Aircraft Making Tech Stops
ISLE OF MAN, BITISH ISLES– October 15, 2012 – Private Jet Company's new $4 million business aviation operation at the Isle of Man Airport (EGNS/IOM) now offers world-wide traffic the opportunity of cost savings on the European Union Emissions Trading Scheme (EU-ETS), and some of the lowest handling costs in Europe and UK for Tech Stops.
Private Jet now offers worldwide business aviation owners/operators, who make Tech Stops at the Isle of Man airport prior to their European destination, the opportunity to enjoy an immediate cost savings of more than 60 percent on EU-ETS carbon offsets on both the inbound and outbound legs to Europe.
The IOM FBO is situated in the Irish Sea between Northern England, Scotland and Ireland.
The facility operates seven days a week, from 0630 to 2045 local, on a two-acre site with more than 226,000 sq. ft of ramp and parking space. Additionally, Private Jet has planning permits, for a second phase of construction, to build a new $2 million, 20,000 sq. ft. hangar with additional office space for lease.
Further, as the company has an established EU-ETS account, they will also help operators by providing ETS recording and verification needed for ETS compliance data. Additional economic lifeboats include substantially lower handling costs than those incurred when making tech stops in Ireland or on the European continent.
According to Private Jet owner Tony Corlett, "We plan to top our aggressive fuel pricing and competitive tech stop handling charges with a newly announced, year-long, special offer. Let me briefly detail our current handling costs and what the new offering will entail
"Right now our handling costs are more than 10 percent lower than what our competition charges at Shannon. For example, for a 40,000 kg aircraft making a Tech Stop at Private Jet, our handling costs would be 1,221 Pounds Sterling (GBP). This cost would include: pre-clearance, fuel arrangement, full use of all facilities, administration, communications plus towing and push back. Added to this Basic Charge would be an additional charge of 125 GBP for GPU, toilet and water," he said.
"Further for the next year, we have an additional promotional offering aimed at reducing Tech Stop handling costs,” he said. "We've taken this step to pull traffic our way.
"As such, we will be offering a new incentive of an additional 25 percent discount on all handling charges for one year—beginning in November--for all handling requests of which we are notified prior to arrival as a tech stop," Corlett said.
"What does this offering translate in savings? For the 40,000 kg aircraft, we will be savings them 308 GBP in handling costs," Corlett said.
ETS Cost Savings and Private Jet Amenities
As the EU allowances for carbon taxes apply to aircraft emissions for the entire duration of the flight, what are the normal charges for an aircraft transiting to Europe? If, for example, a corporate operator planned a flight from Houston Hobby (KHOU) to London's Luton (EGGW) in their Bombardier Global Express, the one-way (leg) estimated fuel burn would be 23,112 kg; the estimated C02 emissions would be 72,803 kg and the calculated ETS charge would be 1,456 Euros (at 20 Euros per ton). Converted to US dollars, that represents an outlay of $1,870.
Another example would be a Falcon 7X flying from Van Nuys to Luton. It would burn an estimated 20,158 kg of fuel, produce 63,498 kg of CO2, and the estimated ETS charge would be 1,269 Euros or $1,650.
"Conversely—in both examples of aircraft flying from US destinations to London Luton—had these same aircraft landed at Private Jet for their tech stop, the operators would have saved more than two-thirds of the purported ETS invoice. In simpler terms, these US aircraft would have only been charged ETS carbon taxes for the remaining 203 nautical miles needed to fly from the Isle of Man to Luton," Corlett remarked.
"This same ETS cost savings applies to aircraft originating in the Middle East,” said Corlett. “For example, if a BBJ flew from Dubai to Luton, the fuel burn would be 17,180 kg, which would leave an imprint of 54,117 kg of CO2. The ETS tax would be 1,082 Euros or $1,483. But if the operator were to make a Tech Stop at Private Jet Company's new FBO, they would save more than two-thirds of their ETS cost.
"Another important factor in choosing an FBO for a tech stop is handling costs. If we use the two US aircraft plus the Dubai-based aircraft as examples, the average handling cost (excluding the 25 percent discount) for each aircraft would have been approximately £1182.47 at 39 Tonnes MTOW, £902.47 at 32 Tonnes MTOW and £2197.47 at 78 Tonnes respectfully. Plus, they save almost thirds-thirds of the ETS charges." Corlett said
Handling services would be provided under the European Business Aviation Association's (EBAA) International Standard for Business Aircraft Handling. In addition to the basic handling, other multiple services include: landing and parking fees, trash burn disposal, lavatory, water, GPU, plus any other pilot requests.
"Fuel costs would be based on market conditions that day. "We are very flexible in offering our customers substantial fuel cost incentives," Corlett remarked. Further, Private Jet always provides its customers with itemized billing, which itemizes and details all services rendered.
"Saving time and fuel is critically important to all operators,” Corlett added. "Using the Great Circle Mapper, we found that Van Nuys to Luton, with a tech stop in Shannon, was 4,759 nm. But, by making your Tech Stop at our FBO on the Isle of Man, with a final destination of Luton, the aircraft would fly 42 fewer miles. That may not be much, but over a period of 25 flights to Europe the costs add up. Also, operators can execute high-speed approaches and weather is rarely a restriction, with an ILS on both runways" Corlett emphasized.
“Moreover, had this aircraft stopped (for their 25 trips) at Shannon for a Tech Stop they would have paid the full ETS offsets and almost 35 percent more in handling charges," Corlett said.
Equally important are passenger comforts. Neither Shannon handling agents have aviation facilities with passenger lounges. The normal passenger waiting area is usually inside the respective handling agent's hangar area. Conversely, Private Jet has a new business aviation center with a luxury guest lounge for passengers to wait out the refueling process.
"And, we understand that most transient aircraft operators may have the need for customs and immigration formalities upon arrival at their destination. When you make an Isle of Man Tech Stop your interim destination, Private Jet is able to obtain all immigration and custom clearances, by use of your APIS prior to your arrival. This service means we will have you on your way in less than 45 minutes—a quick turnaround," Corlett explained.
The FBO Complex
Business aircraft have easy access to the new Private Jet complex from either runway 26 or 08 located on the northeast side of the airport. The Isle of Man airport offers both ILS and LOC/DME on a newly extended 6,000-foot runway Additionally, the new control tower was brought on line in 2012.
Corlett wanted to design a facility that would take advantage of their assigned airport location. Particular care was taken with the building’s orientation to maximize ramp space and provide ease of access from the adjacent taxiway to park near the FBO's entrance, as well as entry into the FBO's hangar.
The environmentally designed 41,000 sq. ft. facility includes a 20,000 sq. ft. hangar with 28-foot height clearance. More than 4,200 sq. ft. is dedicated to the FBO, which is divided into two levels.
The 2,100 sq. ft. lower level is comprised of a passenger lounge, customer service reception center, flight planning room, rest and sleep area for pilots, large 8-person board room, security screening area at the departure area and several Private Jet offices. The upper level is dedicated to office space for Private Jet customers.
"Over time, our customer reviews will document that our concierge and handling services are equal to higher standard of top-flight US FBOs,” said Corlett. “We're particularly proud of the fact that we help all flight crews with their flight plans and other ancillary requirements. That means, we file the flight plans and the APIS passenger information, gain all clearances, arrange for Customs, if requested and make sure all aircraft maintenance needs are met, where facilities and manpower exist.," Corlett said.
The flight service center’s amenities include advanced flight planning and weather technology, pilot’s lounge, staffed reception desk, free WIFI connections, flight department office space, and a refreshment and coffee center. Upon request, customers also have the following services available: concierge, catering, cabin cleaning, power equipment, aircraft detailing, water and lavatory and Customs and Immigration.
"Our services are the same for a tech stop as for an overnight or extended stay,” said Corlett. “We wear two hats, one as an FBO and another as a handling agent. Prior to building our new facility, we were—based on a true European definition—just a handling agent. We now provide turn-around services to aircraft by offering fuel from Shell, U.K. immigration/customs pre-clearance services and for most operations we have the aircraft and passengers onto their final destination in less than 45-minutes.
In fact, based on the high standards of excellence set forth by EBAA's International Standard for Business Aircraft Handling, once we have received EBAA’s approval, in the very near future, we will be considered a European Elite Handling operation.
"Now we have expanded these offerings by providing passengers an actual ‘brick and mortar’ facility to enter where they can use our lounge during a Tech Stop, and take advantages of all the other amenities offered at a general aviation operation," Corlett added.
All Private Jet line and CSRs are cross trained.. The cross training insures that CSRs know how to wing-walk an aircraft, while at the same time the line service professionals know how to handle fuel requests and other personal service requirements.
All line-service personnel are tested on the content of the line-service manual, including FAR 139 fire safety and strict EBAA line-service standards.
The benefit of this stringent training is safe and efficient services. “The team can do a 45-minute quick turn-around on a Gulfstream 550 carrying 12 passengers, including refueling 4,000 gallons,” said Corlett.
“Some may choose to stay longer at the Isle of Man, so whether it’s a business appointment, day of golf, casino visit or relaxation on our beautiful beaches, our customers will be whisked there in minutes,” Corlett said. “As the commercial sector continues to grow in this area, superior concierge services will respond to all customer requests.”
Security Standards Take High Priority
Security was one of the most important issues for the new FBO.
In addition to a closed-circuit TV system that monitors every inch of the hangar and the entire ramp area at all times, two pan-tilt-zoom (PTZ) cameras were also installed to look in every direction in all operation areas, Plasma screens in the line office and at the CSR desk project these images.
Private Jet also has a secure access control system. Every door that leads to a secure area, such as the hangar and ramp, is on a card reader key pad and monitored by a camera. The only way to get to those areas is with a qualified badge and PIN number. The FBO is also protected by Critical part Fencing, which was designed to meet the Department for Transport compliance for perimeter security fencing.
Future Maintenance Operations
"We've modeled our hangar area to eventually house a maintenance facility,” said Corlett. This business opportunity would mean being fully equipped to perform most light and heavy airframe and engine jobs other than a hot section.
Our initial staff would include an IA and A&P and if needed, additional manpower can be flown in from anywhere in the United Kingdom.
"In planning for the future we envisioned a maintenance shop space at the rear of the hangar that would be designed for ease of access to all equipment, plus offer ample space to keep tools and other accessories out of sight when not in use,” added Corlett.
Long Term
“We do not want to be the biggest—we want to be the best, and that meant creating a FBO based totally on our experiences. We have landed and seen services at thousands of FBOs over the years, plus explored multiple aviation communities.
"As such, we learned what we liked and what we didn't like. All told, those choices—what we liked—are represented in our FBO today,” said Corlett.
"The future for Private Jet looks promising. We are targeting new business opportunities with our expanded resources over the next several years," Corlett concluded.
Isle Of Man Offers Distinct Advantages For Business Jet Operators
The Isle Of Man is a self-governing dependant territory of the British Crown, which is not part of the United Kingdom or the European Union. Its heritage has Celtic, Nordic and Anglo-Saxon cultural influences. Its 1,000-year-old Parliament—The Tynwald—makes its own laws and oversees all internal administration, fiscal and social policies.
The UK government administers external issues, such as foreign representation and defense, on the island’s behalf and the island makes an annual payment for these services. The island has its own income tax and Customs and excise services and has long been a low tax area, enjoying total independence from the UK on matters of direct taxation. There is low corporate and personal tax and no capital transfer or inheritance tax, 0% tax for aviation companies. The dependency is in its 28th consecutive year of growth. The continued growth pattern has been sustained by the government's successful strategy of supporting a diversity of businesses, plus a continued pattern of investing in new initiatives.
The Isle Of Man is not subject to the European Union Emissions Trading Scheme for business aircraft. As a result, business aircraft are not required to pay any carbon taxes when making tech stops. According to government sources, "One of the benefits of doing business in The Isle of Man is the opportunity to find an appropriate degree of regulation but always being mindful of not to be inflexible in governing. Legislators agree that supporting business aviation by attracting international traffic is one of the government's strategic long-term initiatives."
Further, The Isle of Man aircraft registry, launched in 2007, has surpassed all expectations with more than 500+ business aircraft registered. Currently, the registry ranks 8th largest in the world.
The Isle of Man is located in the Irish Sea between England, Scotland, and Ireland. The latitude is 54° 3’ – 54° 25’ north, longitude 40° 18’ – 40° 47’ west. It is 32.5 miles long (52.3 Km), 13.5 miles wide (21.7 Km), and the area is 221 square miles (356 Km2). The closest point from the United Kingdom is Burrow Head, Scotland, some 16 miles from the Point of Ayre. London Heathrow is 251 miles, Dublin is 79 miles, and Manchester is 108 miles. Belfast, Dublin, Manchester and Glasgow – are all suitable diversions.
October 15, 2012
Private Jet Company Officially Sanctioned By IOM C & E To Act As Operator Of Privately-Owned Aircraft Worldwide
Strategically positioned at the Isle of Man Airport (EGNS/IOM), Private Jet Company, operator of a new $4 million FBO, enjoys the full legal support The Isle of Man Customs and Excise office (IOM C & E) in collaboration with Her Majesty’s Revenue and Customs (HMRC) Department and to act as an international operator (aircraft manager in US nomenclature) for privately owned business aircraft.
In particular, this special status allows Private Jet to operate other company's aircraft in the European theatre and at the same time offer these companies the business advantage of passing on savings--which Private Jet Company is entitled to--when fulfilling the requirements of the European Union Emissions Trading Scheme (EU-ETS) carbon offsets.
Under European Union law and the European Organization for the Safety of Air Navigation (Eurocontrol), Private Jet has become recognized as a private aircraft operator (Part 91) rather than having to get approval to be classified as a Part 135 AOC (Air Operator Certificate).
How does this work? Private Jet has a Part 91 certificate and the aircraft it operates are actually covered under this same certificate. And, since Private Jet does not carry revenue passengers they are not considered a commercial carrier under the Air Navigation order (ANO)
For example, on the Isle of Man, there are Part 135 charter companies flying revenue passengers using an AOC. They were granted approval to operate from the CAA. These aircraft operators are allowed to use their aircraft to carry fare paying passengers for commercial purposes.
"We are totally a different type of company, as our revenue is generated by operating privately-owned aircraft," owner Tony Corlett said.
"For example, Coca-Cola flies their executives on their company aircraft, which are owned by the company. Coca-Cola's primary business is making soft drinks. Unlike Coca-Cola, we are in the business of operating privately-owned aircraft.
"Private Jet offer two types of services: actual hands-on flying (operating) the aircraft, or managed assistance of the aircraft," he explained. "We manage all aspects of your flight while you retain full control of your aircraft operation. We can either offer to have one of our crews fly your aircraft or you have your crew at the controls," Corlett said.
Every aircraft owner (company or private individual) retains full control of their aircraft, while Private Jet provides a turnkey operational support program. "In essence, we serve as a flight operations department and manage the aircraft in the owner's best interest with strict privacy and confidentiality," Corlett remarked.
Bottom Line Costs Savings
How can having Private Jet Company, when acting as the operator, help the owner of the privately-owned aircraft with cost savings on both Valued Added Tax (VAT) or ETS?
Private Jet's Part 91 liability status is significantly lower when operating in the European states to allow for both VAT and ETS costs savings are passed on to the owner. Acting as a Part 91 operator, Private Jet can save corporate flight departments more than $30,000 a year.
Under EU-ETS legislation, US or other foreign self-owned or corporate operators flying to and from the EU are required to submit independently verified ton-per-kilometer data, along with an emissions report from the previous year. This is specified as the monitoring, reporting and verification (MRV) process. Additionally, all privately-owned aircraft are subject to paying VAT in all 27 member states within the EU.
Because Private Jet is recognized as an aircraft operator, they pay zero percent VAT on qualifying aircraft which they pass on to their customers, Why? Because the EU recognizes that Private Jet is in the business of operating privately-owned aircraft
What savings can Private Jet offer customers? If the customer plans to make multiple stops during its trip to Europe, with Private Jet as the operator with a zero percent VAT liability, the actual cost of the trip would be reduced by approximately 20 percent. That figure is based on what the owner would have had to actually pay if they chose to operate their aircraft independently.
ETS
"We apply for ETS credits, meaning that our privately-owned aircraft customer would not have to purchase ETS credits to hold in their account,” explained Corlett.
“Conversely, if a corporation on its own burns 100 tons of carbon, then the corporation will have to either apply for ETS credits or buy the ETS carbon credits." To apply for credits, a business aircraft operator will have to complete a ton km report with the estimated tons produced per year.
Additionally, based on the corporation flying to Europe 25 to 30 times a year, the company will have to establish an EU-ETS Carbon Credits account at 2,500 Euros ($3,200); independent verification fee at 1,800 Euros ($2,400), and data processor at 1,200 Euros ($1,600) plus handle all monitoring, reporting and verification (MRV) responsibilities.
"Therefore, if the operator chose to open their own ETS account and prepare the report themselves, they would have to cover those added costs,” said Corlett. “If Private Jet was the operator, then we would cover those costs for all the reporting, as we already have an account and verifier," he said.
And if a corporate operator—not using Private Jet to manage the flight—flew from Van Nuys to Luton (one leg) at a distance of 4,717 km, it would burn 25,376 Kg of fuel. They will produce 79,937 Kg of CO2 and will pay an estimated 1,600 Euros in ETS offsets.
"If they had used our services as the operator, we would have saved them almost two-thirds of the ETS charges, and for one round trip their ETS charges would only amount to 400 Euros or $600,” said Corlett.
“In total, by averaging what an operator would have paid in VAT charges and ETS offsets operating their aircraft themselves, we estimate that their tax burden would have amounted to approximately $30,000 a year, depending the aircraft's type and the nature of the operation. This is based on the owner/operator making more than 20 trips to Europe," Corlett commented.
"By using us as their operator in Europe, we would have saved them that much money, not including what we would have saved them on handling costs and fuel charges," he said.
Other Benefits Offered to Customers
"We understand that most flight departments are looking for ways to enhance their bottom line,” stated Corlett. “That means trying to maximize flight operations in a most profitable way. From the many customers testimonials we've received, the majority have told us that Private Jet had been the answer.
"We can help minimize your costs and risks. We also take you through the maze of flight planning, The services rendered under Private Jet's aircraft management agreement include in-house international flight planning, all European handling, finding a suitable hangar for the aircraft, meeting all insurance requirements, and accounting, administrative services and all other necessities such as reservations for all limos, and accommodations for passengers and crew.
"We negotiate your fuel costs and often gain significant savings. We provide an itemized invoice, not just one that lists the total charges without any explanation. Private Jet also has the capabilities to assist with worldwide aircraft registrations, importations and provide support to aircraft manufacturers by managing new aircraft to their destinations," Corlett said.
"Our costs to be your operator are negotiable. To provide a baseline on our costs, let’s use the example of a trip from Van Nuys to Luton. To handle the operation of your aircraft as your European operator (with your crew) from Van Nuys to Luton and return, our cost would be approximately £1000 per week. Extra charges would be all handling costs and fuel charges from the Isle of Man to Luton, and the return trip to Van Nuys would be based on the actual costs for both services," Corlett added.
"We are fortunate to be situated in the Isle of Man. Our island state is ideally situated as an entry point into Europe for all international traffic looking to save on ETS. Further, try us to help manage your aircraft to bolster your aviation department's bottom line," Corlett concluded.
October 15, 2012
About the Author
William Coleman
The Coleman Group