Good Times For Jet Management Operator
At NBAA 2006, TAG
Aviation USA reports its client flight activity and fleet growth
continued strong through the third quarter of 2006, with record
levels of new client activity. Twenty-five fully managed aircraft
have joined the TAG fleet year-to-date, versus 16 during the same
period in 2005. The TAG Aviation USA fleet totals more than 100
fully managed aircraft at more than 60 locations nationwide.
Notably, TAG Aviation client flew 15 percent more hours in the
third quarter of 2005 than during the same period in 2004.
The source of new clients has remained fairly level with
previous years. According to J.W.P. (Jake) Cartwright, President
And CEO, virtually all of them are first-time whole aircraft
buyers.
"About one-third of TAG's new management clients are fractional
share owners whose flying has outgrown share economics," said
Cartwright, "and one-third come from other management companies.
The reason is our focus on safety, security, service, and savings
-- in that order."
About half of TAG management clients seek third party charter
revenue, which TAG arranges via its affiliation with AMI Jet
Charter, a San Francisco-based Part 135 Air Taxi operator. The
success of this relationship is borne out by the fact that almost
twenty percent of the TAG-managed aircraft in charter service have
seen more than $1 million in charter revenue through the third
quarter of 2006, in addition to flying for their owners.
"Aircraft management is TAG Aviation USA's core business,"
continued Cartwright. "That is why we exist -- not to support a
fractional fleet with charter, or to operate maintenance centers
and FBOs. Our owners appreciate that focus and commitment to their
safety and personalized service, with centralized oversight and
large fleet economies of scale, as well as our ability to generate
charter revenue when requested."
TAG reports 20 percent of the TAG-managed aircraft in charter
service will see more than $1 million in charter revenue in 2006,
in addition to flying their owners.
TAG has seen a shift in its charter revenue sources, with less
wholesale and more end user flying in 2006. Fractional operators
are less willing to subcontract their client flight to third party
charter companies, using their own managed fleets whenever
possible.
"That enabled us to
serve more retail clients this year, a more profitable segment,"
stated Paul Class, TAG's Vice President Charter Sales and Flight
Coordination. "We opened a new business development office in
Florida this year, which has enabled us to better serve the
Southeastern US retail market."
Before 2006 is over, TAG will see the delivery of the first
Eclipse VLJ for TAG Aviation USA's shared ownership program, with a
total of 10 delivered by the first quarter of 2008. Matt Sheble,
TAG's VLJ Program Manager, anticipates this first aircraft will
serve as a demonstrator as well as proff of concept for the
program, which focuses on owner days of exclusive use, rather than
annual flight hours.
"2006 has been a hyear of profitable growth with no compromise
in client safety, security of service," said Cartwright. "We will
remain on the leading edge of corporate aviation service by
anticipating and meeting our clients' needs."