Press Release
July 4, 2000
OAKLAND, CA -- The increased number of companies and private individuals owning fractional shares of jets is leading
to more corporate jet purchases -- and a boom in business for the nation's handful of business aircraft management
firms such as KaiserAir, Inc.
"Right now we are working with seven different firms that are buying aircraft," said Sandy Waters, vice
president, business development of KaiserAir. "If they all buy jets, this will be a 50 percent increase in
the fleet that we manage."
Today's booming economy and salaries have meant that executives are placing an increasingly higher value on their
time and turning to corporate jets as a way to maximize their travel efficiency, Waters said.
A corporate aircraft or chartered flight means that an executive can travel on his or her own schedule, without
worrying about possibly cutting a meeting short to make the last plane of the day or spending time waiting at airport
check-in counters or baggage claims. In addition, because of the large number of airports that handle smaller planes,
a private jet usually takes a business executive much closer to his final destination than a commercial flight.
"We recommend charters as a way to try private aircraft. It gives people a chance to see what sort of equipment
they need, as well as to look at how it will contribute to their business bottom line. Many clients also have discovered
the enjoyment of flying in a private charter for pleasure trips. A weekend getaway to Montana or Colorado or other
Western states is very popular," Waters explained.
Many firms go from charter to fractional ownership, in which a company owns a percentage of an aircraft and pays
a fixed amount for a certain number of hours of aircraft use a year.
"And after using fractional services, executives start to understand the time and cost savings possible with
either co-ownership or complete ownership of their own aircraft," Waters said.
"If it's your own plane, you know the pilots and crew members and the plane is ready to take off any time
you want. In a fractional program, this is not always possible," he added.
Owning an aircraft also can be more financially advantageous than fractional ownerships, Waters added. Fractional
companies usually require that clients sell the plane every five years, and pay a commission on each sale. Companies
that own aircraft, in contrast, find that their planes can have a useful life of 20 to 30 years.
"The fractional programs started about 15 years ago, and they've really grown in the past five years as the
economy has prospered," Waters said. "They've been good for the entire industry. They are introducing
people to the advantages of corporate aircraft. Now many of the people who went into fractionals in the past few
years are looking at purchasing their own planes or combining ownership with charters."
KaiserAir is one of less than a dozen full-service corporate aircraft management companies across the country and
the only one on the West Coast. Its personnel range from pilots to mechanics to an upholsterer in case a seat needs
to be repaired or you would like a new interior look. Schedulers are available at KaiserAir to help with hotels,
rental cars and other ground arrangements for charter clients and aircraft owners.
KaiserAir manages more than 14 business jets for both U.S. and international corporations and private owners and
offers six business jets for charter flights. Thirty-three of Fortune Magazine's Top 50 corporations make KaiserAir's
Executive Terminal their home when they conduct business in the San Francisco area.
KaiserAir, Inc. dates back to 1946 when it began as the flight department for the Kaiser companies founded by the
late industrialist Henry J. Kaiser. Passengers have included former U.S. presidents and European royalty, and the
Oakland facility is a refueling stop for Air Force One. Additional information is available at www.kaiserair.com.
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CONTACT: MCA Public Relations