Jet Republic Benefits from Increase in Sales of Used Business Jets in the UK

Feb 11, 2009 3:45 PM

Jet Republic, the newly launched private jet company, estimates that as many as 49 used business jets in the UK could currently be available for sale. This figure represents more than 15 percent of the total number of used business jets presently available for sale in Europe. It estimates that the value of these British registered jets is around $769 million.

With 299 business aviation jets registered in the UK, it is home to the second largest active fleet of business aviation aircraft in Europe behind Germany.

Across Europe, the percentage of the active business jet fleet that is for sale has doubled in the last 12 months from around 6 percent in December 2007 to 12.7 percent in December 2008. Jet Republic is benefiting from a growing number of individuals and companies selling their jets in order to reduce costs and raise funds because many are switching to fractional ownership of a jet or plan to use a card scheme. Indeed, around 10 percent of enquiries received by Jet Republic have been from individuals and companies that used to own a private jet or are in the process of selling one. Normally, Jet Republic would have expected around 2 percent of leads to come from this group.

“The UK is a key market for us," Jet Republic CEO Jonathan Breeze said. "The level of interest we’ve received from here so far has been phenomenal. Over a third (36 percent) of our enquiries have been from people living in Britain. Although the ultra-high-net worth market has been affected by the current global financial crisis, many of those people with private jets are looking to sell them and switch to a fractional ownership model or jet card scheme. This is perhaps not surprising given that the average asking price for a used jet is currently around $16 million ($15.7 million), and we estimate that the total annual cost of running your own jet for 200 hours a year is $3.5 million per year."

Estimated number of jets for sale in Europe
Country.........Jets for sale...........% of total jets on sale
UK..............49......................16%
Germany.........47......................15%
Spain...........37......................12%
Austria.........32......................10%
Switzerland.....27......................9%
France..........25......................8%
Italy...........16......................5%
Denmark.........8.......................3%
Sweden..........8.......................3%
Greece..........7.......................2%
Netherlands.....7.......................2%
Rest of Europe..47......................15%
TOTAL...........310

“When compared to a fractional jet company like Jet Republic with costs of $1.75 million for the same number of hours, it’s easy to see why customers are making the move to shared ownership of new aircraft at half the hourly cost of owning their own independent aircraft," Breeze said. “A fractional business jet program like Jet Republic’s also allows an organization to free up cash as buying or leasing a share in a Learjet 60XR is the most cost-effective way of running a business jet. In many cases, a business jet plays an essential part in enabling our clients to run their lives and businesses.”

Jet Republic calculates that for those private jet owners who use their aircraft less than 200 hours a year, the savings through a fractional program are even greater. Indeed, the annual cost of fractional ownership is significantly lower than sole ownership of an aircraft for those flying for less than 650 hours a year.

“It’s not just cost that’s attracting people to share ownership schemes," Breeze said. "Typically, a private jet is out of service for scheduled maintenance for around two months a year, which is a significant inconvenience to an individual or organization with a single aircraft. The same issue applies to those that require simultaneous use of an aircraft to different destinations. With Jet Republic, customers use their hours when they want them with no hassle, a wonderful service and a brand new aircraft. And it is much better value for money.”

Jet Republic has already starting signing up customers and is in the advanced stages of talks with a number of prospective clients. Around 30 percent of enquiries received by Jet Republic have come from large corporations and governments when it was only expecting around one in 10 to be from this segment of the market. The remaining 70 percent has come from entrepreneurs, private individuals and families.

Jet Republic is a new private aviation company focusing on Europe that aims to redefine the private jet business. It placed the largest European business aircraft order ever, worth $1.5 billion, for 110 Bombardier Learjet 60 XR aircraft, and will fly to over 1000 airports in Europe.

Jet Republic offers an unrivalled class of travel on a singularly spectacular aircraft with bespoke interiors, combined with a seamless concierge service and the latest in safety and security. Jet Republic promises to be the benchmark that all others compare themselves with.

Jet Republic’s Private Jet Club offers members two programs to choose from: Share Ownership or the Private Jet Card.

• Share Ownership is for Jet Owners to purchase or lease a fractional share of a Learjet 60 XR by only paying for an aircraft share equal to the hours they need, starting at 50 hours a year. This program allows Owners all the benefits of private jet travel without the management responsibilities or the large initial capital investment. In addition it offers a buy-back option at the end of the contract.

• The Private Jet Card allows Card Members access to flight time by purchasing 25 hours or more without any further commitment. This program offers all the benefits of private aviation with the simple pricing structure of a one-off payment. In addition all Jet Republic Members will be able to fly anywhere in the world through its partnerships with other operators.

Bombardier’s Learjet 60 XR, renowned for its high-speed performance, superior comfort and functionality, carries with it a legacy that defined the original business jet and continues to shape the nature of private aviation today. Jet Republic’s recently acquired fleet from Bombardier has had its cabins redesigned with the latest communications and security systems, improved seating, state-of-the-art communication — including in-flight wireless connectivity, such as BlackBerry — and clever design detailing, elevating the experience to a whole new level. An ability to fly at 51,000 ft. enables the latest in fuel efficiency, time-saving capabilities, reduced air traffic noise and less turbulence. This aircraft seats seven passengers, who are served hot meals and fresh espresso coffee by a multilingual flight attendant while they watch iPod video through the cabin system. Jet Republic is the aviation equivalent to a five-star boutique hotel.

Jet Republic has access to over a thousand destinations in Europe, with guaranteed aircraft availability at as little as 24 hours’ notice. The highest level of end-to-end global concierge opens doors to Members in any city worldwide, from dinner reservations to theatre tickets. A virtual executive aide is on call day and night with the full resources of their worldwide network.

Jet Republic’s operational management team includes senior personnel who previously worked for companies such as GlaxoSmithKline, NetJets, WhiteConcierge, the Royal Air Force, Air Partner plc, Financial Times Group, TAG Aviation, Execujet, Groundforce ONE, Rolls-Royce, Sotheby’s, Siemens, Marriott International, Bombardier, Euram Bank, McKinsey & Co., British Airways and Iberia.

Jet Republic is 100 percent carbon-neutral through a partnership with ClimateCare, one of Europe’s most experienced providers of carbon offsets. Each project is rigorously audited and monitored for quality.

JetRepublic.com

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