SOURCE: ElJet Aviation Services

July 08, 2008 14:01 ET

ElJet Charter Market Report

LOS ANGELES, CA--(Marketwire - July 8, 2008) - ElJet Aviation Services is a leader in the private jet charter industry. On behalf of our customers, we continuously analyze important market trends in the private jet charter and jet ownership market. Here are some significant trends:

The number of jets available for sale has increased significantly. In listings of sold jets by category, prices have gone down, while the number of jets listed have gone up.

While there has been a significant decline in purchases of jet cards, fractional shares, and jet club memberships, there has been a jump in traditional jet charters by previous customers of jet cards, fractional shares, and jet membership clubs.

Why is all this happening?

During the boom years of 2006 and 2007, the jet charter industry increased capacity significantly. Many of the larger players built enormous fleets backed by private equity and Wall Street firms. As business began to slow in 2008, many operators found themselves with more capacity than business.

Charter operators typically manage aircraft for owners. If an owner feels that his aircraft isn't flying enough, he may pull his aircraft and have it managed by another operator. Operators began to offer lower prices to keep their aircraft competitive and flying.

Because of this, prices for jet charters (exclusive of fuel surcharges) have gone down. Looking at internal trips coordinated in the first quarter, ElJet Aviation has seen an average price decline of ten percent per trip. An ElJet roundtrip air charter on a midsize jet between Van Nuys Airport (VNY) and Teterboro Airport (TEB) in New York has declined by an average of fifteen percent.

As the major airlines decrease capacity, there has been a significant increase in smaller, city-to-city charter trips.

According to Ben Schusterman, Vice President of Operations for ElJet, "The first five months of this year have been our best yet. We have noticed a significant crossover of customers from fractional and jet card programs, and the increase of new customers entering the charter scene has never been stronger.

"The slowing economy has required that companies reflect on expenses, and many are looking to jet charter companies to offset the high cost of travel. They find they can get the same exact aircraft, without any compromise on safety, luxury, age, or service, at prices sometimes 40 percent lower than fractional and jet card programs."

To learn more about the savings of utilizing ElJet Jet Charter over other services, please visit Eljet's interactive price comparison calculator at http://www.ellejet.com/Quote_Worksheet.php.

ElJet is a privately held company and does not release internal earning statements. For more information, please visit ElJet at www.ellejet.com. You can e-mail us at sales@ellejet.com, or call us toll free at 888-355-3538.

Contact Information

  • Media Inquiries:
    Ben Schusterman
    888-355-3538 ext. 302