Development of a Business Plan to Establish a Private Jet Charter Essay

Development of a Business Plan to Establish a Private Jet Charter - Essay Example The adoption of the hub and spoke system by commercial airlines requires most passengers to transit through one of some 70 large airports, adding to the total travel time for most passengers. Most major airline hubs are large and have air traffic congestion and connection times of over 2 hours are needed to provide for potential delays in the incoming flight and the transfer time including additional security screening. An additional issue with the hub and spoke system is the increased probability of mishandled baggage. Due to restrictions on the nature of carry-on bags, many business travelers need to check in tools, instruments and such material and if these do not make the transfer, the business trip itself may become abortive (Copley, 2012). There are over 5000 public use airports in the US that can be accessed by private air charter planes. The reduced travel time due to point-to-point connection, the convenience of flexible departure and turnaround times, the possibility of using flying time for work and the reducing cost differential between commercial plane tickets and air charter rates ( especially when a team of people are travelling together) is driving the growth of the air charter industry. There are over 2,000 registered private air charter companies in the US operating over 15,000 business aircraft with total revenues of over $ 12 billion a year. The overwhelming majority of these planes seat 4 to 8 passengers and have a maximum range of 1,000 miles. Private air charter companies transport between 1 and 1.5 million a year and these aircraft log over 18 billion revenue passenger miles. Contrary to the general impression, only some 3% of these are owned by large corporations (NBAA Fact Book, 2012). Most business aircraft are operated by small entrepreneurs and are typically operations with 1 -2 aircraft. The