So Charlie looked away and tried to buck himself up by considering the glories of his surroundings, namely the G-5 (Gulfstream V) and its wonderful appurtenances. The cabin’s dozen seats were big as thrones and upholstered in the richest tan leather imaginable and placed at conspicuously wasteful intervals, like chairs in a club lounge. There were curtains and carpeting woven with Croker Global’s navy-and-gold logo and custom-made consoles with the logo carved on the doors in relief so deep that people couldn’t resist running their fingers over it.

"A Man in Full"

Photo courtesy Citation Shares

Richmond-born author Tom Wolfe can be forgiven for having a little fun with the common perception of the corporate jet. In his 1998 novel about New South greed and opulence, Wolfe makes the Gulfstream V — the Rolls Royce of private aircraft — a symbol of power so enticing that the book’s hero, an overreaching Georgia businessman named Charlie Croker, is absolutely crushed when his business failures make him sell the aircraft. For an even more scathing cartoon, consider the Lockheed Jetstar owned by evil crook Auric Goldfinger in the 1964 James Bond thriller. As 007 learns to his delight, not only does this posh craft feature onboard martinis served by an Asiatic beauty, the pilot is a voluptuous blonde with a provocative-sounding name.

Go ahead and laugh. But seriously, there’s a new mood out there about corporate planes and it’s not driven by machismo. Fact is, commercial air travel is so plagued with delays and poor service that executives are being forced to consider private planes as a faster, more efficient way to get deals done. And, with commercial airfares so high and flights so dicey, business people planning quick weekend escapes are finding that chartering planes is worth the extra expense.

Virginia is a big player in the private aircraft market. It ranks No. 10 in the nation with 401 business turboprops or jets, according to the National Business Aviation Association (NBAA). If you factor in the 764 similar aircraft, which are registered in Washington, D.C., but most likely are based at Virginia airports, the number approaches that of national leader Texas. The trend towards corporate planes went full tilt in the cash-rich 1990s, but with the continued problems of commercial airlines and the threat of major strikes this spring, even the current economic downturn hasn’t sent corporate planes into tailspins.

Virginia-based aircraft, like those anywhere else, demand deep pockets. An entry-level Learjet or Beechjet 400A is a cool couple of million and that doesn’t include maintenance or the crews’ salaries. Top-of-the- line globetrotters, such as Gulfstream V’s or Bombardier Global Expresses, can run well past $20 million, and you have to wait your turn. "Aircraft orders and bookings are backed up for two years," says Joseph Hart, NBAA coordinator of operations in Washington.

Driving the demand for aircraft are trends making private airplanes affordable to executives of smaller companies. For years, the corporate jet was bailiwick of Fortune 500 companies, such as Philip Morris, which keeps jets in the New York area, near Milwaukee, and one at Richmond International. Now, however, charters are making jets available to small firms along with relatively new deals that involve buying fractional shares of aircraft. "I’ve been here since 1981, and Richmond back then couldn’t support one Learjet. Now there are 20 jets," says Alex Kempe, president of Martinair, a Richmond-based company that charters aircraft or puts together partnership agreements for them.

Martinair, along with Richmond-based competitors Dominion Air and Millionaire, handles charters that can make sense for firms that need special flights totaling up to 50 hours or so each year. For instance, if a firm based in Central Virginia needs to visit bankers or stock analysts on Wall Street, it makes more sense to charter a jet than to go commercial. For one reason, since it is so close to Washington, Richmond’s airport is at a disadvantage as far as direct flights and airfares. Martinair can supply a Beechjet 400A that can seat seven passengers. The jet can whisk them to Teterboro, N.J., the major civil airport serving New York just about 45 minutes from Wall Street, in less than an hour. The jet will be waiting for them later that day to take them home. At about $4,000 plus tax for the day’s trip, the cost per person is roughly $570 which, in some cases, is less than what a business class airfare on commercial airlines would be.

Executives who need to fly at least 100 hours a year but don’t want to buy a plane can compromise by buying part of it. In a trend that began in the mid-1980s and has been picking up speed, several companies offer fractional purchases of commercial jets in quarter, eighth or sixteenth portions. The leader is Exec Jet owned in part by Nebraska investment mogul Warren Buffet.

A relative newcomer, a Greenwich, Conn.-based firm named Citation Shares, sells portions of Cessna Citation jets which can handle up to 11 passengers and have ranges of from 1,700 to 2,200 miles. An sixteenth share of a $4 million Citation aircraft can require a down payment of about $300,000, not including monthly management and other fees. Fractional owners need only call eight hours in advance of when they want their jet. Their aircraft or one like it will arrive and take them where they want to go. "Driving our sales is the horrifying service from the airlines and the fact that the price has come down to be within the reach of many more people," says Richard Leachman, Southeastern regional sales manager for Citation Shares. He says business is so good that his firm is getting eight planes this summer and has 25 more on order for next year.

At the moment, only the larger aircraft, such as the Gulfstreams or the Bombardiers, can handle transoceanic flights. They also have full-service galleys on board and offer in-flight chefs. Communications are no problem since the planes have satellite systems that can handle phone calls, faxes or data transmissions. Smaller craft, such as the Learjets, Citations or Beechjets, have the same soft leather seats, but food and drink service is basically box lunches and a cooler.

Besides onboard amenities, there are clear advantages to using civil airplanes for business. The obvious advantage is speed and convenience. They can go immediately to airports where commercial planes can’t land. Private jets are just that — private. So, details of ongoing deals such as mergers can be hammered out inflight in complete security. And, for the stealthy corporate takeover artist, showing up at night in a remote airport draws a lot less attention than flying commercial.

Private planes are a boon as well to the executive who is traveling for pleasure. For instance, chartering a plane for a spring weekend of golf at Hilton Head, S.C., can be only moderately more expensive than flying commercial. And much less circuitous. Rather than flying to a commercial airline hub such as Charlotte, taking your chances changing planes for Savannah and then facing an hour’s drive to the links, the charter can get your golf buddies directly to Hilton Head at the appointed hour. Now that’s a sweet pleasure that can bring a character like Charlie Croker to tears.

Return to Virginia Business - April 2001