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02 August 2006
So you still think that Private Jets are expensive?
Consider this real life example where a small corporation saves
close to $16,000 by choosing to book a private jet:
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The Mission
We have 4 passengers arriving from LHR to MIA on the 14th
of August. They have 3 meetings scheduled. The first
meeting in West Pam Beach, FL (PBI), the second meeting
in Elizabethtown, NC, the third meeting in Morristown, NJ.
The passengers will be returning to LHR on the 16th in the
evening.
The trip analysis
The closest airport to Elisabethtown, NC is Wilmington
Int’l (ILM) and is about 50 miles away. The passengers
will have to rent a car or hire a chauffeured Limousine to
reach their destination. The drive is about 1:10 Hours
long in each direction. With a private jet you can land
directly at the Elizabethtown airport (KEYF).
The closest airport to Morristown, NJ is Newark Int’l.
Whether they rent a car or hire a chauffeured Limousine
the drive is about 30 minutes each way. With a private jet
they would land in Morristown airport and would only need
ground transportation to reach Newark Airport.
The commercial option
The itinerary using scheduled airline flights within the US
looks like this:
| 1 | CO9309 | Y | 15AUG | 2 | MIA TPA | HK4 | 935A | 945A | BE1 |
| 2 | CO9220 | Y | 15AUG | 2 | TPA PBI | HK4 | 1155A | 1255P | BE1 |
| 3 | US 334 | F | 15AUG | 2 | PBI CLT | HK4 | 230P | 420P | 734 |
| 4 | US5008 | Y | 15AUG | 2 | CLT ILM | HK4 | 530P | 630P | CR9 |
| 5 | UA1886 | Y | 16AUG | 3 | ILM CLT | HK4 | 600A | 652A | 733 |
| 6 | UA1782 | Y | 16AUG | 3 | CLT EWR | HK4 | 740A | 928A | 733 |
The charter option
The itinerary using a Mid-Size Private Jet (a Hawker 800XP in this instance) looks like this:
| 1 | IMJ | N6271 | F | 15AUG | KMIA KPBI | 900A | 942A | H81 |
| 2 | IMJ | N6271 | F | 15AUG | KPBI KEYF | 1230P | 218P | H81 |
| 3 | IMJ | N6271 | F | 16AUG | KEYF KTEB | 830A | 942A | H81 |
Comparison between Private Jet Travel and airline
scheduled flights:
| | Airline Flight | Private Jet |
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| First Class service. | 1 out of 6 flights | All flights |
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| Flight time and wait time | 11:48 Hours | 3:42 Hours |
| Ground transportation: | 3:20 Hours | 0:30 Hours |
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| Total travel time: | 15:08 Hours | 4:12 Hours |
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| Fare Paid - as of July 15, 2006 | $ 9,859.20 |
$ 22,173.50 |
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| Total Cost - Including employee time | $ 48,259.00 | $ 32,413.00 |
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| Total savings when using the Private Jet option | |
$ 15,846.00 |
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The $ value of time
Based on a sample of private jet passengers whose companies foot the cost of the charter,
the hourly rate applied per employee varies from $2,000 and $8,000 depending on the size of the company and the
position of the employee. The calculation of this hourly rate is close in concept to what insurance companies use to
determine the "key-man" value for insurance purposes. In the case above we used $2,560 per hour.
Our Private Jet Specialist program, drawing from a study by Arthur Andersen prepared for the NBAA, shows how you can
focus your marketing efforts and provides cogent sales arguments to corporations that should consider private jets.
To join the Private Jet Specialist program click here.
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Growing Your Business
BusinessJet Class is dedicated to your success and will work with you to make the magic happen for your customer, whether it be anything from setting up a corporate shuttle to matching a competitive rate. Call us at 1 800 397 8564!
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BusinessJet Class Travel Agency Newsletter - 02 August 2006 |
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