Rivals in the Skies

A growing number of new businesses have landed in Southwest Florida, aiming to appeal to affluent, well-traveled businesspeople and residents in search of alternatives to the post-Sept. 11 airport hassles and delays of commercial airlines.

Private-jet ownership has long been favored among those who can afford it. "Naples is an affluent market, and it's really nice for some wealthy person to say, 'We'll get my jet and go to Mardi Gras,'" says Naples Air Inc. co-owner Catherine Fay.

But the options are growing beyond the one-owner-one-jet approach, and companies offering those alternatives are homing in on the Naples area. The region has several characteristics that make it attractive to fractional-jet ownership and charter companies: great geography, good flying weather and high-net-worth individuals. "Mediocre" airline service adds to their appeal for such travelers, says Richard Aboulafia, an aviation analyst with Virginia-based Teal Group Corp.

"We have always had a pretty good number of charter operations here," says AnneElena Foster, director of communications at Naples Municipal Airport, which she says sees more arrivals and departures per year than even Southwest Florida International Airport. "There's more fractional traffic now, and the fractional alternatives are increasing."

Buy a piece of a jet

Airport officials are awaiting the debut of a homegrown fractional-ownership program by Arthur Allen, CEO of Naples-based ASG Software Solutions. Allen knows plenty about air travel; he logs more than 200 days of travel a year on his Gulfstream jet.

Through the shared-ownership program, Allen Shares intends to offer a solution to the high cost of sole ownership, with an emphasis on convenience and customer service. Included will be a concierge and a state-of-the-art $7 million hangar with gourmet catering kitchens, meeting space and a plush lounge.

The plan is to have two Gulfstreams built, with five partners each. The jets will be based at the Naples Municipal Airport and maintained by a local crew, says flight operations manager Patrick Canizares.

As part of the projected membership fee, which includes the $3 million to $10 million to have the jets built (depending on the size of the plane), each partner will be able to fly up to 100 hours a year on either jet. In addition to tax advantages, owners will see a return on their investment as the craft will be chartered "at a high-end rate" during unused hours, says Canizares. To cover fuel, pilot and other costs, owners will pay an hourly rate of around $1,000 to $5,000, depending on plane size, number of hours and other factors.

Allen Shares is targeting executives who travel frequently, people with more than one home or business base, travel enthusiasts and retired or semi-retired residents "who appreciate a fine lifestyle with as much convenience as possible," Canizares says. Most already own small planes, have experienced corporate air travel or are looking for alternatives to such programs as NetJets, another fractional-ownership business.

"We're trying to differentiate ourselves [through] personalized customer service," he says.

Pennsylvania-based Voyager Jet Center, a private charter company, recently added a mid-sized Raytheon Hawker 800A jet based at Naples airport to its other aircraft. Since January, the company picked up a half-dozen clients, and aims to have a dozen by year-end.

A flight in the eight-seat jet to New York City ranges from $1,600 to $1,800. "People have the means to pay for it," sales manager Eric Tabor says.

Reasons to go with charter services and fractional-ownership programs are compelling, depending on the need. Charter services come with fewer obligations, while fractional plans have tax advantages and lower pricing. Still, investing in fractional ownership pays off only for those who fly more than 200 hours a year, Fay says.

Grab an air cab

Meanwhile, another form of air travel is on the rise: the air taxi.

"It's basically a charter with very high utilization and very low levels of empty flights, so you get, theoretically, lower prices," Aboulafia says.

That's the idea behind SATSair (Smart Air Travel Solutions). In February and March, it toured Florida airports, including Page Field, Naples Municipal Airport, Charlotte County Airport, LaBelle Municipal Airport, Immokalee Regional Airport, Marco Island Executive Airport and Everglades Airpark to promote its air-cab concept to new markets. The Greenville, S.C., company began operating in November 2004 with one airplane and a few flights, and now has 26 aircraft and serves nearly 1,500 passengers a month, according to Phil Quist, vice president of business operations.

The concept is that travelers can avoid being charged wait fees and empty legs. "What we're doing from an air-cab standpoint is just like a taxicab in a city," Quist says. "You're paying for only the time that you're in the cab."

The meter would start running once the aircraft reaches Naples or Fort Myers, for example, and stop when the passenger disembarks at his or her destination. A different plane and crew would likely pick the passenger up for the return flight.

The average cost to travel on the three-seat planes ranges from $2,795 for a five-hour package ($559 per hour) to $22,000 for a 50-hour package ($440 per hour).

Quist says his service is best for people seeking to fly one or two hours to a destination rather than taking a four- to eight-hour drive there. Fractional ownerships, meanwhile, might make more sense for those seeking to travel longer distances, such as Naples to New York.

"Our air cab would not be the appropriate [choice]," he says, noting that most current users travel within the state for business or to vacation homes in the Carolinas. Customers, however, can grab a flight in their hometown instead of having to drive to a larger airport.

The company has not yet built up a significant amount of business in Southwest Florida. SATSair has dropped off some travelers and has averaged a few pickups every other week, but it doesn't yet have a lot of repeat business, he says.

The challenges for companies offering alternatives to commercial airlines are simple: making money and building sufficient customer demand, Aboulafia says. New operations in Southwest Florida are fighting to make their services stand out, confident that area residents are already interested in and willing to pay for convenience, comfort and customer service. People are tired of the long lines to get on most commercial flights and taking off their shoes to pass through security.

"There's plenty of money here and there are plenty of retired CEOs. They're aware of this kind of service; they've all flown corporate at least once in their lifetime," Canizares says. "Here, you come to the plane. It's a lifestyle that the people getting involved are used to."