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Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
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Thu, Feb 10, 2005

It's The Money Talking: Charter Sales Taking Off

Despite Bad Press Over Recent Mishaps

Forget, for a moment, the Montrose, CO, accident involving ABC executive Dick Ebersol. Forget last week's mishap at Teterboro Airport in New Jersey. The demand for charter air services is soaring nationwide and accidents like those simply don't seem to be making a dent in the psyche of the charter-flying public.

With that in mind, the Pittsburgh Business Times reports charter operators are on a buying spree, picking up more aircraft in anticipation of growing demand that, at this point, shows no sign of slacking off.

With those new aircraft are coming new employees who are crossing over from commercial airline operations. The Journal points out much of the uncertainty over the future of air travel in Pittsburgh is fueled by the recent hard times which have befallen US Airways.

Take, for instance, Voyager Jet Center, based at Allegheny County Airport. There, company president Rich Ryan says three of his A&Ps and two of his pilots came from US Airways. And if more want to cross the line between commercial and charter, Ryan says, he'll be happy to talk with them.

Karl Foerster crossed over two years ago after he was laid off from US Airways. Now, he's Voyager's chief pilot and the vice president of operations.

"When I found Voyager Jet, it was a small company that I quickly realized was going to be a great player," Foerster told the Business Times. "I wanted to be a part of this." He says the some 20-percent of his former cockpit colleagues have made the jump so far.

Another charter outfit based near Pittsburgh, LJ Aviation, is also adding planes and people. That company's president, Edward Kilkeary, says he's growing at up to 12-percent a year.

"People are less than thrilled (with commercial airlines). They are willing to pay more to fly privately," Kilkeary told the Pittsburgh paper. "This has been a trend throughout the market because most of the first-class travelers have all gone to private charter."

Yet another -- Corporate Air Management -- says it's growing by 20-percent a year.

Kevin McKinney, senior sales manager at Vee Neal Aviation, based at Arnold Palmer Regional Airport, says he's seen tremendous growth since 9/11 and the exponential security increases the airline industry has seen ever since. "People are trying to get away from the TSA lines that hold them up, and they feel more secure when they know the people on the airplane," he told the Business Times.

At the National Business Travel Association, spokesman Caleb Tiller says the charter situation in Pittsburgh is something of a classic spiral. He thinks the loss of at least some US Airways flights in Pittsburgh will be a boon to charter operators.

"If there are fewer flights out of Pittsburgh, it is likely that commercial flights are going to cost more, which would make corporate jets more attractive," he told the Business Times.

FMI: www.nbta.org

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