Fractional Jet Ownership Evolves

Tue, 01 Sep '09

Business Analyst Says "Business Models Must Adapt"
With shakeups in the executive suite, major startup failures and questions of survival for some established providers, Brian Foley Associates president Brian Foley concludes the fractional jet industry is in the midst of major transformation. "Regrettably there'll be more turmoil in the charter, air taxi and fractional arenas before year-end," he notes. "We're only in the fifth inning."

The recent $1.5B cancellation of Bombardier Learjet 60 XR orders and options by Portugal-based Jet Republic should have come as no surprise. "A year ago we publicly warned that start-up fractional companies would be particularly vulnerable during this downturn," reminds Foley.  "But this was especially dramatic because it concerned one of the largest business jet fleet orders ever placed."

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