Charter service flies without owning plane

SYRACUSE - For 25 years, Syracuse Executive Air Service (ExecAir) has been flying people to their destinations without a single accident, says Mark Geremia, president. Interestingly, the charter-flight business has done it without owning an airplane. There are three planes in the hanger for use by ExecAir: A Cessna Citation II, a Beechcraft King Air A-100, and a Beechcraft King Air E-90.

Geremia, says local companies purchase the aircraft, then turn it over to the charter service to use, in exchange for a percentage of the revenues gained. Thus, the owner companies are getting a return on the purchase price to make the plane pay for itself. Geremia says the new Cessna Citation just added to the fleet cost about $2 million. The charter service also has the two Beechcraft planes for use, and each cost about $1 million to $2 million. "It's a win-win for all," says Geremia.

In some cases, says Geremia, people are investing in a private aircraft on time shares, similar to time shares in a vacation home. Known as fractional ownership, it's a growing phenomenon, he continues. "Eight people get together and buy the plane and agree on the rights to it," he explains.

The Citation II is a twin turbojet capable of reaching a speed of 400 miles per hour, with a range of 1,500 miles, and it can carry eight people. ExecAir's Web site (www.flyexecair.com) lists the cost of a flight at $1,500 per hour for a charter flight. Geremia says the cost of a charter flight is based on the number of hours the owner of the plane uses the plane, the number of flying hours the plane is chartered by someone other than the owner, and the services provided by ExecAir. The Beechcraft King Air E-90 is also a twin turboprop that averages 260 miles an hour, with a 1,200-mile range, and carries six people. It costs $875 per hour with a two-hour minimum. The Beechcraft King Air A-100 is a turboprop that averages 260 miles an hour with a range of 1,000 miles. The plane seats up to eight people and costs $995 per hour, also with a two-hour minimum to charter.

Charter flying has advantages over commercial flying that make the service attractive to businesspeople - no waiting in line for a ticket or to check luggage, and no waiting for a flight. The flights by charter aircraft can be changed to fit the needs of the customer. Geremia says that if, for example, you have a meeting in New York City that ends earlier or runs later than anticipated, a phone call to the pilot will result in adjusting the flight schedule to your needs. The air service even books rental cars, limousines, and hotels.

ExecAir also has a flight school and "the finest, premium aircraft-maintenance shop in the Northeast," says Geremia.

The air service has 50 full-time employees and seven buildings at Hancock International Airport ranging in size from 18,000 square feet to 30,000 square feet. Annual revenues for Syracuse Executive Air Service are in excess of $8 million.

Copyright Central New York Business Journal Dec 06, 2002
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