The ExecuJet Aviation Group launched a new corporate aviation program tailored to the needs of governments, corporations and high net worth individuals. The company is launching the programme to initially be focused on wide-bodied business jets, and has identified emerging markets as key for this new business model. 

Reaching beyond fractional ownership, where members typically buy into a share of a jet, with a set number of flying hours a year, ExecuJet’s proposition is to have full use of your own aircraft, for a typical programme period of 5 years, without all of the classical responsibilities and risks of ownership.

In a major expansion of its portfolio of aviation activities, ExecuJet will acquire of the aircraft, and then insure the aircraft, provide crew, manage and operate the aircraft under seven, Air Operating Certificates (AOCs). ExecuJet would naturally also arrange maintenance and technical support and provide all the fixed base operations (FBO) and ground handling services – all for a set monthly fee. When the client flies, this shall also be charged at a fixed hourly rate; thereby reducing the risk of operating cost variations. Additionally, should the client wish to make the aircraft available for charter to third party customers, and so generate income to offset the monthly fee, ExecuJet would provide this capability. This then encapsulates all costs and risks into a programme with a fixed monthly cost, fixed hourly rates, and limited variable costs to be on charged on a monthly basis.

Launching the programme in London, ExecuJet CEO Niall Olver highlighted that acquiring, operating and ultimately disposing of a business jet can be a tough and laborious process - which involves dealing with a regiment of specialists from consultants to banks and insurers - who may not always be familiar with the nuances of the private jet market. “We are proud to announce that ExecuJet will be the leader in to combining all private aviation services, in the form of a ‘beginning to end’ full aircraft access programme, that truly benefits our clients with a simply and efficient solution.”

“Operating a business jet has never been a simple proposition. The process is very time consuming – which aircraft, new or used, how do I know I am getting value for money, what about resale? As a result, in recent years, newcomers to the business aviation fraternity have often gravitated toward fractional ownership. In Europe, the fractional fleet exceeds 100 aircraft (from zero at the beginning of the decade). Today, more than 1,000 individuals or companies hold fractional shares in business aircraft,” said Niall Olver.

Typically, fractional owners fly 100 to 200 hours a year in business jets. At higher utilization rates, full ownership can be more economical, but traditional full ownership lacks the simplicity of dealing with a fractional provider, and entails a major investment in an aircraft.

“It was born out of recognition of a gap in the market,” adds Gerrit Basson, Group Managing Director. “Over the past year 18 months we have seen that regular fractional owners are starting to look to the next level – they want an interim step – the ability to call on their own aircraft – but they do not want the responsibility of full jet ownership. We are addressing this with our new jet ownership programme.”