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THE MAGAZINE FROM CANDY & CANDY A/W 2014 | VOLUME 10 | … · Varsano of The Jet Business...

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THE MAGAZINE FROM CANDY & CANDY A/W 2014 | VOLUME 10 | UK £25 | €30 | $40
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Page 1: THE MAGAZINE FROM CANDY & CANDY A/W 2014 | VOLUME 10 | … · Varsano of The Jet Business (thejetbusiness.com). They are driving a diversification that means it has never been easier

THE MAGAZINE FROM CANDY & CANDY A/W 2014 | VOLUME 10 | UK £25 | €30 | $40

Page 2: THE MAGAZINE FROM CANDY & CANDY A/W 2014 | VOLUME 10 | … · Varsano of The Jet Business (thejetbusiness.com). They are driving a diversification that means it has never been easier

T E KY’S

THE L M T

T h e p r i v a t e - j e t i n d u s t r y i s h a l f a c e n t u r y o l d t h i s y e a r. R O B R Y A N r e p o r t s o n h o w

a o n c e - t i n y n i c h e m a r k e t i s l i s t e n i n g t o t h e j e t s e t a n d o f f e r i n g t o t a k e p a s s e n g e r s

f u r t h e r, f a s t e r, o n f u l l y e q u i p p e d p l a n e s

I L LU S T R AT ION

F E R N A N D O VO L K E N T O G N I

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Moscow to Mozambique at a fixed hourly rate with no nasty surprises.

Jackson, on the other hand, wondered why the charter business was so opaque. ‘Why are you never told the agent’s commission or who the operator will be? Our concept was to be completely transparent with members right the way through the process, including about how much we charge, the type of plane and the tail number.’

Varsano recalls how things were when he started in the plane market: ‘The guys in the office were in shorts and T-shirts, eating hamburgers, yet were selling aircraft worth millions of dollars over the phone.’ Varsano upscaled that sales model with the world’s first-ever walk-in corporate jet showroom. Opened in 2012 in Grosvenor Place, London, its staff use iPad-powered apps to show clients available aircraft and interior options on a giant wall screen.

And there are other changes afoot, because this once-niche market is spreading its tentacles deep into the leisure industry – holidays are going private, too. This year, the luxury Caribbean resort Sandy Lane began offering flights from Heathrow to Barbados using Royal Jet, a fleet of Boeings owned by the Abu Dhabi government. Meanwhile, the Four Seasons Hotel Group has introduced a programme of private-jet cultural tours on board a spacious own-branded retro-fitted Boeing 757, flying to city destinations such as Istanbul, or to Africa for safaris. Emirates has also launched a private-jet arm – a charter for up to 19 passengers on an especially well-appointed, even lavish, version of the Airbus 319. With an onboard marble shower/spa room that would not look out of place in one of the aforementioned Four Seasons hotels, the aircraft also features suites with lie-flat beds.

F I F T Y Y E A R S AG O , a company called Executive Jet Aviation set itself up as both a charter and an aircraft-management company, with a fleet of only 10 Learjets. But EJA’s board of directors back in 1964 included actor James Stewart (who flew bombers over Europe in World War II and ended the war as a colonel), Pacific hero General Curtis LeMay and Paul Tibbets, the man who piloted the Enola Gay. And despite their hardcore military backgrounds these three were to have a startling impact on corporate aviation in the US – EJA was eventually contracted to 250 companies, with its planes clocking up a collective three million miles per year.  

In 1986, new owner Richard Santulli decided a radically revised business model was needed. He came up with a concept known as ‘fractional ownership’, whereby his clients would buy and own a percentage of a plane that represented the number of hours per annum they would be flying. He also decided rebranding was in order: NetJets, later acquired by Warren Buffet, was born.

But, as with all aspects of modern life, the pace of change in the private-jet sector is accelerating. It had taken 22 years for EJA to become NetJets and a decade more passed before the concept of prepaid Jet Cards – good for a fixed number of hours on a certain type of jet – took off. These days, though, something like a new smartphone or app can revolutionise the way companies do business in what seems like a heartbeat.

Nonetheless, there are still entrepreneurs who, like Santulli, come along and inject fresh ideas into the market – men such as Thomas Flohr, CEO of VistaJet (vistajet.com), Clive Jackson of online brokerage service Victor (flyvictor.com) and Steve Varsano of The Jet Business (thejetbusiness.com).

They are driving a diversification that means it has never been easier to get the private-jet habit. And once you’re used to 15-minute check-ins, keeping your belt and shoes on at all times and eating black cod with miso on board, it’s hard to go back into the security line, fast-track or not.

These entrepreneurs are people who have examined various areas of the industry and asked: ‘Yes, but why does it have to be done like that?’ A decade ago, the flamboyant, Porsche-racing Flohr was repeatedly told he had to have a ‘home base’ for his fleet of charter aircraft. ‘But why?’ he said. ‘Why waste money or charge the client for flying them back empty?’ So, instead of being clustered in one location, VistaJet’s fleet – which is distinguished by its silver-with-a-red-stripe exterior, and sumptuous cream interiors designed by Flohr’s daughter – can be found hangared all over the globe, poised to fly clients from Siberia to Singapore or

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It is the constant evolution of mobile technology, particularly online bookings made from smartphones, that is having the most impact on the business. ‘The idea for Victor coincided with the appearance of the iPhone,’ says Jackson. ‘I knew smartphones would alter the way people searched and booked flights, and it has. We recently had a booking where the client went from making an enquiry to arriving at the airport within 45 minutes.’ Certainly, in his experience, being in the air two hours after deciding to fly isn’t uncommon, and he adds, ‘It’s likely to become much more the norm as people come to trust and rely on the technology.’

And it’s not just for the booking stage that flyers are using the net more – on-board wi-fi is now considered such an essential tool that Magellan Jets (magellanjets.com) in the US has introduced the Wi-Fi Jet Card, which guarantees holders access to wi-fi-equipped mid-size and super-mid-size jets: clients are assured they will be able to keep in contact in the air.

Gulfstream, the company that manufactures the much-in-demand long-range G650 (order now for delivery in 2017), has always been a leader in mobile communications for aircraft. ‘We’ve recently launched a MyGulfstream app,’ says spokesperson Heidi Fedak. ‘It allows customers to download and save documents, gives quick access to bulletins and personalised push notifications, and facilitates instant communication between the customer and their Gulfstream representative.’ There is also a

Gulfstream Cabin Control app, which enables G650 passengers to control on-board temperature, lighting, window shades and entertainment with their mobile phones. So much, then, for the no-in-flight-calls rules.

The success of the G650 is proof the strongest growth is at the long-range end of the jet market. Clients want to fly longer, non-stop, than ever before.

This is a trend that’s likely to continue as far-flung markets emerge and globalisation continues apace. London gateway Biggin Hill (bigginhillairport.com) has this year seen the arrival of Swiss company Linkinjet, which has transatlantic capability. And two of the most talked-about jets right now alongside the G650 are the Embraer Legacy 650, which is also capable of London–New York non-stop, and the new Dassault Falcon 8X, an ultra-long-range jet able to fly from Los Angeles to Beijing without touching down.

NetJets Europe (netjetseurope.com) has recently added several new 14-passenger Bombardier Global 6000s to its fleet, with a range that takes in London to São Paulo non-stop. The company designed the 6000 ‘Signature’ series after in-depth research with its customers. Marine Eugene Beveridge, head of sales, says: ‘When we asked our clients what they wanted, it was fresher air, more efficient soundproofing, more privacy and separate areas within the aircraft. Plus, of course, complete connectivity.’ Ex-F1 racer Thierry Boutsen, founder of Monaco’s Boutsen Aviation (boutsen.com), which markets and manages pre-owned jets, agrees: ‘They want space, speed and range, and the latest internet communication technology, satellite and GSM telephone systems and live TV. They use the planes as a very efficient office.’ 

But, increasingly, the jet set wants more than just a flying desk. Bombardier is currently on tour with an interior mock-up of its new Global 7000, which comes with what the company’s senior advisor Aurélie Sabatié claims is ‘the first four-cabin zone with dedicated areas to allow passengers to work, eat, sleep and relax in a comfortable environment.’

Gulfstream also believes this ‘flying apartment’ concept is the way forward. ‘Five years ago, people wanted offices in the sky,’ says Heidi Fedak. ‘Now they expect their aircraft to have the same capabilities as their home. They specify high-definition TV, full entertainment capabilities, the latest films, staterooms, a fully equipped galley and in-flight access to baggage. That demand for a completely mobile “lifestyle” will only increase in future.’

We all want to go further, faster and fully equipped with all the comforts of home, while plugged into both the real and the virtual worlds of commerce, blurring the boundaries between work and play. Fifty years after EJA started the ball rolling, the industry can deliver all of that. So, what’s next? Analysts are keeping an eye on the recently unveiled short-range HondaJet, with its innovative over-the-wing engine pods, to see if it kick-starts the smaller jet market in 2015. And then there’s the Aerion AS2, which inside looks much like any other conventional top-end 11-seat jet. But it can fly supersonic, just as Concorde once did. You’ll have to wait seven years for one, but when it does come into service, expect a rush to be the first to go past Mach One in a private plane – while still working on the company spreadsheets, of course.

“Five years ago, people wanted offices

in the sky. Now they expect their aircraft to have the

same capabilities as their home ”


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