New Version Of Business Class Set For Takeoff

Corporate jet travel is getting ready to take off with the arrival of Very Light Jets (VLJs), more economical planes that will offer flyers another way to get to business appointments.

New to the market is JetSet Fractions by JetSet Inc., based in Burlington, Ont. The company is offering the MS760x personal jet with a fractional-ownership package geared to high-income individuals who have the most demands on their time.

It is the first light-jet operation in Canada and flies out of Hamilton airport's FBO (fixed-base operation) - a tiny airport within an airport where private jets are fuelled and passengers board and disembark these small planes, away from the busy main terminal.

"Once you've flown into a private FBO, you never want to fly any other way again. Customs greets you at the plane, the car is waiting on the tarmac with the air conditioning on, the trunk open waiting for your luggage, and in a few minutes you're gone. It's the way travelling should be," says Edward Furtak, president of JetSet Inc. "People want tailored aircraft for the time and convenience it provides."

The airplanes cost just under $1 million (U.S.) A 1/16th share is $60,000 (U.S.) and gives you 25 hours of flying time a year. There's also a monthly management fee of $1,000 (U.S.) and hourly operating costs run $1,100 (U.S.).

"It's about the price of a domestic sports car," Furtak says.

But he says his clients aren't stopping there. Many are buying a 25 per cent share of the plane, at a cost of $250,000 (U.S.), not including the monthly fees and operating costs.

The four-seat, twin-engine jet is designed, manufactured and certified in France. It cruises at about 650 km/h (400 m.p.h.) and has a range of 1,600 kilometres. Passengers climb into the plane, which has a bubble canopy that "appeals to the entrepreneur owner who wants the excitement of this type of travel," says Furtak.

He is clearly bullish about the potential for his company and the MS760 personal jet.

"Demand is going to continue to be strong in Canada as well as the United States. The economy is doing well."

The company will be taking delivery of its third aircraft in three weeks. In addition to Hamilton, the company operates out of Atlanta and Hamilton, Bermuda, with plans to expand service to Montreal and New York.

The corporate jet market in Canada is about 1/10th the size of the U.S. market and there are just 35 to 40 airports in this country serving corporate jets, compared to about 1,000 in the U.S.

The number of VLJs, or microjets, is expected to increase next year as a number of manufacturers, such as Eclipse Aviation, get ready to deliver their first planes.

The U.S. Federal Aviation Administration predicted earlier this year that the use of private business jets will triple over the next decade in the U.S., largely driven by the introduction of the relatively inexpensive VLJs. It suggests that 100 VLJs could be operating in the U.S. by the end of this year, with the number growing by 400 to 500 aircraft annually after that.

"Very Light Jets are the biggest development coming and have the potential to significantly transform business travel," says Joseph D'Cruz, a professor at the Rotman School of Management in Toronto.

"Cost is significantly lower than current models of jets, so it's going to open the commercial market for corporate jets."

Estimates are that VLJs will cost $1.5 million to $2.4 million (U.S.), substantially less than the current fleet of business jets.

"The corporate jet really is an ego-indulgence market. It's mostly a symbol of having arrived, typically because the cost is difficult to justify. However, the new ones are going to be much easier to justify and will open up a new segment of corporate travel," he says.

That likely means bad news for commercial airlines, which could lose many high-paying customers who now book pricey first-class and business-class seats or full-fare tickets at the last minute.

"Fractional ownership has been around for a while, but the VLJ will make it more accessible and cost effective to a larger group of people," D'Cruz says.

Even without all the buzz around the VLJs, the corporate jet market has been taking off in the last few years.

Rob Giguere, president of Skyservice's FBO at Pearson airport, says its fleet has grown from 26 to 40 planes over the last couple of years, offering everything from Lear to Challenger to Gulfstream jets to its high-end clients. "We've been experiencing a stronger market."

Skyservice also operates FBOs in Montreal and Calgary.

Giguere is more cautious about the demand for fractional ownership in Canada. "We don't have the population to drive it. It's more popular in the U.S."

The coming of VLJs also raises concern about increased air-traffic congestion - in the skies, in airports and on runways.

Furtak points out that the MS760x flies at an altitude of 25,000 feet, well below big commercial jets that are typically flying at 35,000 to 41,000 feet. The small business jets also tend to use smaller, secondary airports.

Congestion in the skies is a concern, particularly in the U.S., says D'Cruz, "but that will be addressed by the new generation of air-traffic control systems. The current systems in place use technology that is 30 years old.

"There is significant room for improvement, and the new systems will be able to handle two to three times the traffic they do today."

News stories provided by third parties are not edited by "Site Publication" staff. For suggestions and comments, please click the Contact link at the bottom of this page.