true true 0 <b>What can owners do to trim private aviation costs?</b> Aircraft owners are always looking for ways to trim expenses—the current economic conditions only make it that much more important. Ironically, they have had some help from the turbulent economy, as oil is down 60-70% from its peak this summer. There are a number of other things that aircraft owners can do to lower their operating expenses. Being mindful that jet fuel is most often the largest portion of variable operating expenses, owners can look into purchasing fuel under a contract (essentially “pooling” jet owners to leverage group buying power) or shopping FBOs [reader knows this acronym?] for lower fuel costs. How an owner’s flight department operates the airplanes can have a big impact as well. By flying more direct routes or a slower, more fuel-efficient profile (referred to as a long-range cruise) can pay significant dividends. [sentence doesn’t make sense; something dropped?] This is where a good aviation manager really pays off. This may be an opportune time to look at renegotiating a hangar lease, insurance policy or maintenance agreement to see where savings can be made. One factor to consider—start by reviewing the operating budget to make sure you know where all of the dollars are going. It’s difficult to manage what you can’t measure; I’m often surprised to discover how many flight departments really don’t have this scoped out. <b>How is the private aviation market weathering the economy?</b> I am not sure if there is any aspect of the global economy that the current unrest has left unscathed—private aviation is no exception. The number of pre-owned aircraft on the market is up, sale prices are down and aircraft manufacturers’ backlogs will shorten as customers start to cancel orders. Buyers are happy to wait on the sidelines looking for an indication that the market has hit bottom. Sellers, often unwilling to accept the new world order, are slow to lower asking prices. At some point, prices move into a range where buyers see value and deals get done. But there is another factor currently in play as well—some borrowers are finding it harder to get financing. Fractional and charter operators are also seeing an impact. The Financial Times reported that NetJets Europe is now forecasting revenue flights to be flat this year, as opposed to a 10-12% growth originally forecast. Numerous charter operators are reporting a drop in demand as well—some by as much as 40% or more. People who own aircraft may look to sell and get into fractional aircraft, fractional owners may not renew shares and instead turn to jet cards, or charter and charter customers may opt to fly business class. Bottom line, it is a softening market almost everywhere you look. _Ask a Jet Expert is a regular column from Craig Bowers, president of JetForward Aviation, an executive aviation search and acquisition firm based in San Jose, Calif. Craig’s unique background combines an extensive aviation career with an accomplished sales track record. As a former military test pilot, commercial airline captain and general aviation pilot, he is able to provide clients with first-hand knowledge of the aviation business to achieve a safe, cost-effective solution focused on an individual’s unique travel requirements. Got a question for the Jet Expert? Email us at editor@halogenguides.com._ 2008-12-10T22:23:18Z 0 true 1626 false false 2008-12-22T22:22:00Z true false ask-a-jet-expert-trimming-travel-costs false 0

Article 2008-12-22T20:02:13Z 580 21