Jet Cards Compared Prepared for May 2013 Conklin & de Decker

Jet Cards Compared
Prepared for
May 2013
Conklin & de Decker
62B Cranberry Hwy
PO Box 1142 Orleans, MA 02653
T 508-255-5975 F 508-255-9380
david@conklindd.com
www.conklindd.com
Conklin & de Decker
Table of Contents
About Conklin & de Decker
3
Introduction
4
Service Areas
5
Aircraft Selection
5
JetCard Pricing - One Year, 25 Hours
6
Level of Service
6
Level of Safety
7
Key Findings
8
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About Conklin & de Decker
Conklin & de Decker’s mission is to enable the general aviation industry to make more informed decisions when dealing
with the purchase, operation and disposition of aircraft by furnishing objective and impartial information.
With nearly 30 years in business, Conklin & de Decker is a leader in aviation research, consulting and education with
offices in Massachusetts, Texas and Arizona. Founded in 1984, the company focuses on fixed- and rotary-wing aircraft
operating costs, performance and specification databases, maintenance management software, financial management,
fleet planning, market research, aviation tax issues, and financial, tax and management seminars. Conklin & de Decker
consults with numerous individuals, corporations and government agencies worldwide.
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Introduction
This report compares the pricing and service levels of the JetCard with their major competitor, NetJets Europe, and their
Private Jet Card. We attempted top get publishable rates from other competitors, but their pricing policies do not make
that possible.
Both programs start with an offering of a 25-hour prepaid card. Flights are booked with 24 hours advance notice. Billing
is for the occupied flight time plus 6 minutes ground time on taxi-out and taxi-in.
Air Partner plc is a global corporate aircraft charter company with 20 offices in Europe, North America, the Middle East
and Asia. In Europe, they offer the JetCard, a card program of pre-purchased private aircraft charter. In addition to their
promise of highest levels of service, their JetCard program advertises
• You buy a pre-paid card with a set number of flying hours. 25 hours is the current offering.
• Flight credit that never expires and full refunds on unused airtime
• The flexibility to fly when you want, to almost anywhere in the world
• No positioning costs, management fees or long term contracts
• Discounts on qualifying return trips
• Flexibility to switch cabin sizes
• No additional charges for complimentary upgrades
• When you fly, only occupied flying hours are deducted from your card, plus six minutes of taxi time at each end of the
flight.
NetJets Europe is the European arm of NetJets, the globe’s largest fractional aircraft provider. NetJets Europe offers
the Private Jet Card. The Private Jet Card is offered as a solution for individuals or companies who want all the benefits
of NetJets, but with no ownership or other long-term commitment. In addition to their promise of highest levels of
service, their Private Jet Card advertises:
• You buy a pre-paid card with a set number of flying hours. 25 hours is the current offering
• The flexibility to fly when you want, to almost anywhere in the world
• No positioning costs, management fees or long term contracts
• Flexibility to switch cabin sizes
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Service Areas
Both Air Partner and NetJets Europe have coverage throughout Europe with special service to popular destinations in the
Middle East.
Both Air Partner and NetJets Europe require twenty four hours’ notice for flights within the European Service Area. Forty
eight hours notice is required for jet flights that are not completely within the Service Area.
For trips to/from the Middle East, it appears that Air Partner offers more destinations than NetJets Europe. However, the
destinations offered by both providers could change.
Both offer global aircraft travel to the US and Asia with additional costs to be incurred. In general, customers will incur a
ferry charge to the nearest accessible international airport in the relevant Service Area. Customers will likely incur
additional international fees when flying outside the European and US Service Areas. This applies to both Air Partner and
NetJets Europe.
Aircraft Selection
Both programs have an impressive offering of aircraft with varying sizes and capabilities. Air Partner offers more model
choices than does NetJets Europe. This could be an advantage should a customer have a favorite model that they prefer.
However, in terms of capabilities, both offer wide choices.
Cabin Size
Very Light
Air Partner JetCard
Cessna Mustang, Cessna CitationJet.
NetJets Europe Private Jet Card
N.A.
Phenom 100
Light Jet
Hawker 400XP, Citation Bravo,
Cessna Citation Bravo, Hawker 400XP
Citation CJ2, Citation CJ3, Learjet
31A, Learjet 40, Phenom 300,
Premier 1
Midsize
Citation Excel/XLS, Falcon 50EX,
Cessna Citation Excel/XLS, Hawker
Gulfstream 100, Hawker 800XP,
750/800XP
Hawker 1000, Learjet 45, Learjet 60
Super Midsize
Citation Sovereign, Citation X,
N.A.
Gulfstream 200, Challenger 300,
Hawker 4000
Large
Challenger 604/605, Dornier 328JET,
Dassault Falcon 2000/2000EX
Falcon 2000 series, Gulfstream 350,
Legacy 600
Global
Falcon 7X, Falcon 900, Global
Falcon 7X, Gulfstream G550
Express, Global 5000, Gulfstream 450,
Gulfstream V & Gulfstream 550
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JetCard Pricing - One Year, 25 Hours 1
Cabin Size
Air Partner JetCard
NetJets Europe Private Jet Card
Very Light
€114,000
N.A.
Light Jet
€142,000
€137,000
N.A.
€163,250
Midsize
€189,000
€199,500 (Hawker 800XP)
Super Midsize
€247,000
N.A.
Large
€296,000
€315,900 (Falcon 2000EX)
Global
€390,000
€409,900 (G550)
Light Jet/Citation Excel
Comparing the card pricing, Air Partner has a slight cost advantage. However, the full pricing needs to also consider the
additional charges and fees. Air Partner has strived to maintain a simple-to-understand and predictable cost structure.
One of the most difficult to estimate costs for any aircraft operator is fuel. Most card programs make a baseline
assumption as to their fuel cost and then add on a Fuel Cost Adjustment (FCA), or Fuel Surcharge. This added cost is
based on the fuel consumption of the aircraft and the cost of fuel at the time of billing. Air Partner’s JetCard is inclusive of
the total cost of fuel, a rarity. NetJets Europe, like most card programs, charges an FCA that can range up to €1,500 per
flight hour, or more.
For flights outside the service area, there may be additional fees associated with positioning the aircraft for the trip, and
perhaps added customs and airport fees. The below table highlights some possible added charges.
Potential Other Costs
Air Partner JetCard
NetJets Europe Private Jet Card
Catering
Included in price
Extra for larger aircraft
Fuel Cost Adjustment (FCA)
Included in price
Yes, €650 to €1,900 estimated
Additional Airport fees (In Service Area)
Included in price
Yes
Interchange/Upgrade Fee
Included in price
Yes
Yes
Yes
Yes (Optional)
Yes (Optional)
Ferry Fee (Outside Service Area)
Carbon Offset Available
Both programs also offer the option for paying carbon emission offsets. Air Partner offers this a s flat 2% fee while pricing
may vary with NetJets Europe.
The Air Partner JetCard has no expiration of funds and offers a guaranteed refund of any unused funds. NetJets Europe
does not offer the same guarantees and their stated term of service for their card is 12 months.
Level of Service
Air Partner plc has been issued a Royal Warrant. British Royal Warrants are currently granted by Elizabeth II, the Duke of
Edinburgh and the Prince of Wales to companies and tradespeople who supply goods and services to the royal family. A
1
Early 2013 Pricing
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search on Wikipedia lists dozens of companies ranging from personal items to high-end automobiles. Air Partner plc is
the sole air charter provider listed. 2
The Air Partner Jetcard offers a locally based account manager. The hours can also be used for one of Air Partner’s other
transportation services such as helicopter charter or limousines. NetJets Europe does not offer the same flexibility.
Usage surveys of private air transportation services are rare. It is difficult to say that Air Partner offers superior service as
compared to NetJets Europe as no independent surveys have been found. Both advertise the highest levels of service
that should come with such exclusive air travel.
Level of Safety
NetJets Europe trains their pilots and maintain their aircraft to the highest safety standards. They have independent
safety audits performed regularly to ensure compliance with those standards. Air Partner employs a strict quality
assurance program which assures the highest levels of safety for their clients. This program is an ISO 9001 accredited
program.
2
Source: http://www.royalwarrant.org/
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Key Findings
Both Air Partner and NetJets Europe offer a wide range of private air transportation services with their card programs.
Both offer high levels of service and the ability to fly globally. Air Partner’s JetCard pricing is inclusive and avoids the
unknown of the fuel cost adjustment that NetJets Europe (and most other providers) charge. Based on current pricing
and policies, the Air Partner JetCard is the lower cost alternative to the NetJets Europe Private Jet Card.
Criteria Assessed
NetJets Europe
Air Partner JetCard
Advantage
Accessible Service Areas
(without penalty)
Europe + special destinations
Europe, Middle East, Continental USA, Mexico and
Caribbean + special destinations
Air Partner JetCard
Notice Period
24hr in Europe
24hr in Europe
Comparable Products
Aircraft Choice
4 categories and 10 aircraft types only. Cost
penalties for interchange. 6 categories from smallest
to largest. 37+ individual
aircraft types No costpenalties for interchange. Air Partner JetCard
Pricing
Higher base cost PLUS
Fuel Cost Adjustments
Lower cost relative to NetJets Europe
Air Partner JetCard
Flexibility
Hours have limited life
span. Limited or no
refunds. Interchange rates
with other categories usually involve a cost penalty. Hours don’t expire, full
Air Partner JetCard
balance refund available at
any time and / or hours
can be freely exchanged
for other goods and services purchased through Air
Partner without penalty.
Quality Assurance, Service
and Safety
Robust internal controls to
assure premium quality,
service and safety standards
Robust internal controls to
assure premium quality,
service and safety standards
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Comparable Products
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