If you fly frequently, particularly by private charter, you may have thought about purchasing your own corporate aircraft.

It’s a decision that has to balance costs with convenience and efficiency. Here are some things to consider while you research whether or not buying a corporate aircraft is right for you.

Who buys corporate jets?

Most purchasers are high net-worth individuals and corporations who fly frequently. If you log in over 200 hours of flying time per year, the price of purchasing and maintaining a plane becomes cost effective.

As well, those who purchase do so to obtain more control over the flying experience. Owning a corporate aircraft affords owners the convenience of having a dedicated crew available whenever they want to fly, 24/7. No more waiting in security line-ups and gone are the days of waiting 2 hours for your flight only to be bumped due to over-capacity.

The Benefits of Ownership

When a person or organization owns their own aircraft, it can be customized with specific equipment and comforts that suit their needs. Flying by private aircraft charter is almost always better for executives who have little time to waste, as the jet becomes their own private boardroom in the sky. Private aircraft can come with every convenience imaginable, including fully functional galley kitchens, private washrooms, bedrooms for long hauls or overnight flights and multiple meeting spaces for privacy and in-flight internet, phones and fax machines for increased functionality.

When you own your own aircraft, you also hire a flight crew that remains with the aircraft every time you fly. You can develop a personal relationship and a level of trust with them and they become a member of your successful team.

As a corporate aircraft owner you can also make your own choices as to how you use your aircraft. When you charter a flight, you often pay by the hour when it sits on the ground, so if you fly a group to a vacation destination and would like the aircraft to wait on the ground for your party for a week, that’s not cost effective with a charter flight. However, if you own the plane, you can dictate how and when it’s used. (And you can even fly your flight crew home by commercial airline if you don’t need them in the meantime.)

Costs

Purchasing a corporate jet can cost anywhere from $500,000 and $80 million. Along with the initial cost of purchasing the aircraft, they must be stored, staffed, fueled and maintained. Ongoing maintenance costs usually add up to about 15 percent of the purchase price per year.

Be sure to spend the time finding the right company to help you purchase or sell an aircraft that knows the landscape and with relationships can help you get the best deal. For more information on buying and selling jets, visit jaspears.com.

Most individual and companies who own their own corporate jet contract a third party management company to deal with the aircraft and provide staff, maintenance services, storage and, most importantly, deal with the complex paperwork required to meet the required government regulations as well as organize flight logistics to fly anywhere in the world. These turnkey operations provide a considerable benefit: they administer everything to do with the aircraft and when you need to fly, all it takes is a quick phone call to arrange a flight, even on short notice.

These management companies, including Skyservice, will also charter out your aircraft when you are not using it. This helps offset some of the ongoing fixed costs of ownership. How much it can offset depends on many factors: when the economy is doing well and during busy aviation seasons such as Christmas, spring and fall, the charter industry is very busy.

Your Next Move

Talk to an experienced management company such as Skyservice about the cost effectiveness of purchasing a corporate jet and what type of jet would be right for you.

The decision to buy a corporate jet is an involved one that requires considerable number-crunching and a careful consideration of the benefits versus the responsibility and costs of ownership, but in the end private aircraft charter provides incredible flexibility and maximizes productivity for frequent flyers.

How do you put a price on arriving home after a busy day of flying to multiple sites and still have time to tuck your children in bed?

Have you ever been on a commercial airline and found yourself stuck on the runway while the crew deals with mechanical problems or de-icing? Most of us have been in this situation and have been frustrated when the hours pass and passengers become increasingly hungry and uncomfortable.

A rising awareness of this common problem is triggering a call for an improved passenger bill of rights in Canada.

A new bill

Last month, the federal NDPs introduced a redrafted private member’s bill to protect airline passengers. The current bill lists a statement of principles and a code of conduct for Canadian airlines.

Bill C-459 would require airlines compensate passengers for delays or lost luggage. That includes up to $100 per passenger for every hour trapped on the tarmac and proper access to food, water, fresh air and bathroom facilities while waiting. It would also up the expectation of compensating passengers with accommodations when they are left waiting for a delayed or overbooked flight.

Why now?

Many stories have surfaced of late of troublesome passenger delays. For instance, on February 8, during a snowstorm, a Sunwing Vacations flight leaving from Toronto was delayed for 16 hours, and passengers spend much of that time trapped on the plane on the tarmac with limited food and drink. They were given $25 food vouchers and $150 rebates on future flights for their inconvenience.

What’s in place already?

Currently, Canadian passengers are protected under rules passed in 2008. According to Flight Rights, which is administered by Transport Canada, airlines must display all their terms and conditions. There are also passenger rights and airline rights and responsibilities. That includes offering meal voucher if passengers are delayed more than four hours and overnight accommodations for those delayed more than eight. However, it does not hold an airline responsible when weather is involved.

People who have had a negative experience with an airline can complain to the Canadian Transportation Agency for an investigation.

Other jurisdictions

Talk of new passenger rights has been informed by the experiences of other nations. The U.S. passed the Airline Passenger Bill of Rights in 2010. It says passengers stuck on the tarmac for any more than three hours must be allowed to deplane, or airlines must pay a $27,500 per passenger fine.

The NDP act is based on a bill of rights introduced in the European Union in 2005. Similar regulations are also in place in Asia.

What you can do?

If you have a concerning experience with a Canadian airline, take up the problem with the carrier first before issuing a formal complaint. If you are taking an important business trip or travelling with a group and must avoid delays, consider flying by private charter.

Private aircraft charter flights do not keep passengers on board a plane that is delayed due to weather or other issues. Food, drink, facilities and ground transportation are always nearby and easily accessed by passengers.

When you fly by private charter, not all jets are the same.

At a glance, these aircraft may not strike you as dramatically different from each other. But there are subtle factors that can influence which aircraft is best for you to charter or even purchase.

Here’s some types of jets you might come across the next time you fly private charter:

Light jets

For short runs, nothing is more efficient than a chartered executive light jet. Some models you might see include the Cessna Citation V and Beechcraft Premier 1 and soon the new HondaJet.

These are cost-efficient jets: the newer models are very fuel efficient, are the least costly to purchase and their compact size keeps operating costs low. Charter prices for these light jets runs from $2,800 to $3,200 a flight hour.

They can carry up to eight passengers and feature a compact but comfortable cabin. Most light jets with an average payload can stay in the air before needing to refuel for about three hours.

Who charters light jets? For companies who need to do day trips to places like New York City, Boston and Chicago, passengers can leave after breakfast and be home in time for dinner. Light jets are also ideal for visiting smaller regional airports not serviced by scheduled airlines. They allow the passengers to arrive closer to their ultimate destination and avoid a long ground commute.

 To see more aircraft in the light jet category click here.

 Midsized jets

These somewhat larger aircrafts are designed to travel longer distances in comfort. They can fly up to 4,828 km without refuelling, so are ideal for  trips to southern destinations and even overseas.

Companies and individuals often look to midsized private charter jets for cross country site/office visits, work retreats, ski/golf getaways, family vacations and visiting elite sporting events. They are also ideal for a corporate shuttle; allowing multi-city site visits in one day.

Midsized executive jets can accommodate up to nine passengers in comfort. Most boast a stand-up cabin and offer more cargo room than a light jet. They also include an enclosed lavatory and a small galley, making longer distance travel even more pleasurable.

Some brand names you might come across include the Challenger 300 by Bombardier (which was reviewed in the Jan/Feb 2013 issue of Canadian Skies magazine, which you can find here), the Hawker 800, Cessna Citation Excel and the Bombardier Learjet 45.

These jets sell for between $2 and $10 million and are an investment for individuals and companies doing longer hauls with larger groups.

Chartering these planes costs between $3,900 and $5,500 per flight hour.

To see more aircraft in the midsize jet category click here.

Long range and ultra-long range jets

Unlike midrange jets, long range and ultra-long range jets are often used for groups of 10 or more or for the most discerning business traveller.

These aircraft often include WiFi and satellite communications that allow passengers to continue working in the privacy of a boardroom in the sky. Passengers can also leave on a nonstop flight after dinner, sleep in a comfortable bed and arrive in London, Tel Aviv or Mumbai first thing in the morning refreshed and ready to start their day with no time wasted.

They can accommodate as many as 14 guests and travel about 10,000 km without refuelling. They are definitely the jet of choice for entertaining clients and VIPs.

Look for models such as Gulfstream V, Bombardier Global Express 5000 and XRS. Private charter rates for these larger, longer-range jets runs from $5,700 to $10,000 per flight hour.

To see more aircraft in the long range jet category click here.

To see more aircraft in the ultra-long range jet category click here.

Skyservice runs an extensive fleet of light jets, mid-range jets, long range jets and ultra-long range jets available for charter flights.

Private charter jets are not all the same. When chartering for business or pleasure, ask a few key questions to make sure you’re choosing the right aircraft for your needs.

Canada’s passports are about to get a lot more high tech. What do the new epassports mean for you?

Basically, it means the next time you renew your passport, it will probably look different. Instead of blank pages, there will be embedded images on each page. Depictions of the Grey Cup, the prairies, Niagara Falls and the fathers of confederation will decorate these pages as watermarks.

It will also cost more. A five-year renewal will run $120 for the new passports, compared to the current price of $97. However, adults can now renew for a full ten years for $160, an option that was never available before. (Children can only get five-year passports.)

These new passports also have embedded information you can’t see. They’re embedded with a computer chip that contains all your passport information, including your photo. These chips will be read by special scanners at airports and land borders that are already used in 95 countries.

It’s all in compliance with new standards set out by the International Civil Aviation Organization.

But the extra cost has a benefit: since your photo and other basic information are stored in the chip, it’s much harder to tamper with a passport and commit fraud at the border. The government is hoping that other nations might ease their visa rules because of this, and let you into certain countries without a visa at all because the passport has all the information they’ll need.

This also means if you lose your passport or it gets stolen — 55,000 Canadian passports are lost are stolen every year — no one can use it.

At some airports you can use an automatic machine to verify your passport, making air travel easier and faster. This practice will likely become more widespread as more nations add chips to their passports.

These new passports are not to be confused with the ongoing NEXUS system used between Canada and the U.S. Having a NEXUS card lets frequent travellers move more easily across the border. There’s no word on whether NEXUS will be integrated into ePassports in future in some way.

Since existing Canadian passports will expire in five years, it will take until 2018 for all Canadians to get ePassports. At this time, there is no suggestion those with older style passports will be expected to renew earlier to get on the new system.

The new epassports will be available starting in early 2013 in select locations but will be rolled out to all passport offices across Canada by July 1. For more information, check Passport Canada’s web site.

It’s by far the busiest time of the year for travel. December sees people flying home to see family for the holidays but also hitting warm locales for some R&R while school is out. In the U.S. alone, about five million people fly in the late December/early January travel season every year.

If you do hit an international airport over the holidays, be prepared for stress and chaos. It’s not an easy time to travel no matter what you do, but here are some ideas for making things go better.

Use online tools
Confirming your flight details at home online is essential: your flight may have changed due to overbooking or weather. As well, many airlines allow you to print out your boarding card at home, or upload a code to your smartphone. Do both in advance of your flight: this will save you time at the airport and also means you’re less likely to get bumped from your flight if it’s overbooked.

Know your terminal
When you’re driving or taking at cab to the airport, know well in advance which terminal and airline you are flying through. The signs often zip by very quickly and you can find yourself driving in circles if you take the wrong turnoff at the often complicated roadways around big airports.

Arrive early
Add time to the regular suggested preboarding time. Usually, Canadian airlines suggest arriving one hour before a domestic flight, 90 minutes before travel to the U.S. and two hours before an international flight. Tack on at least 30 minutes to these suggested times when flying in December. This gives you extra time for lineups at the airline, security and passport control. Since you know you’ll be spending additional time in the airport, be prepared with entertainment (music, books) and snacks.

Board early
While it’s tedious to be on the plane for a long time, you’re less likely to get bumped from your flight if you’re already sitting in a seat.

Book carefully
Since bumping is a common practice this time of year, try to plan your travel days with plenty of wiggle room. Be sure you have a good amount of time between connecting flights and that you’re not arriving at your destination just minutes before a huge party you need to rush to.

Ship gifts ahead
Carrying a lot of luggage means more waiting and possibly extra fees. Try to ship your gifts ahead of time via registered mail or by courier. If you do bring gifts along, do not wrap them. Or security staff may ask you to — your hard work will be undone and the whole security check process will take more time. Generally, you can take a small bag like a laptop bag or a backpack plus a purse and items needed for children as carry on. To check baggage, airlines such as Air Canada and American Airlines are now charging $25 for a first checked bag on some economy runs (such as from Canada to Florida). Air Canada will charge you $75 for overweight and/or oversized bags and as much as $100 for a second bag.

Be bump smart
If you do get bumped off your flight, use your cell to call the airline’s customer service line, even if you are waiting in a lineup at the airport to book another flight. Chances are you’ll get through the toll free line before you get help in person.

Avoid busy airports
If you have the option of flying out of a different airport or changing planes at various cities, opt for those that have the lowest volume. Particularly U.S. airports have very intense security rules and they can lead to huge lineups when you change flights. Check out this list of the busiest airports in the world. As well, if you are travelling outside of Canada, avoid transferring through airports known for weather problems such as Chicago and those on the U.S. eastern seaboard.

Book all travel in advance
While you may have booked your flight in the early fall, don’t neglect to deal with ground transportation as well in advance. Booking bus tickets or a rental car long before you take your trip is key this busy time of year.

Fly private charter
If you are flying with a larger group, you have little time or your travel destination is some distance from a major airport, consider flying private charter through one of the many smaller airports in North America or internationally. You will avoid all the above hassles and can arrive for your flight shortly before it’s due to leave and avoid lineups at security and at passport control. You can take as much luggage as you like and aircraft charter companies have staff on site who can help with last minute ground transportation concerns and the like as well.

HONDA AIRCRAFT

EXPANDS SALES NETWORK

WITH CANADIAN PARTNER

HondaJet appoints Authorized Sales Representative in Canada

ORLANDO, Fla., Oct. 29, 2012 – Honda Aircraft Company announced today a new Canadian Authorized Sales Representative for the HondaJet, the world’s most advanced light jet. Honda Aircraft and Skyservice Business Aviation signed the official agreement at the National Business Aviation Association (NBAA) annual meeting and convention in Orlando, Fla., on Oct. 29. Skyservice will support HondaJet aircraft sales in Canada.

“Skyservice has an outstanding reputation in Canada as the country’s largest aircraft management and charter operator and will be a strong HondaJet network partner,” said Honda Aircraft President and CEO Michimasa Fujino. “Skyservice has an extensive footprint in major Canadian markets and shares Honda’s commitment to provide the best customer experience, strengths we look for in any partnership.”

Skyservice is one of Canada’s largest aircraft management, maintenance and charter operator with facilities in Toronto, Montreal, and Calgary. The company offers comprehensive business aviation services including charter services, fixed base operations, maintenance, and aircraft management.

“For 26 years, our organization has maintained a strong commitment to service and building customer relationships,” said Marshall Myles, president of Skyservice. “We are extremely excited to sell the best-in-class HondaJet in Canada.”

The company has earned the Platinum ARG/US rating North America’s most stringent aviation safety ranking for exceeding and maintaining the highest safety and operational standards, as well as the internationally recognized IS-BAO designation, the gold standard for business aircraft operations. Skyservice was founded in 1986 by Russell Payson. The company has 500 employees.

“Canada ranks fourth in the world for business jets and new business aircraft deliveries,” said Byron Severson, Honda Aircraft Company vice president of sales. “It is an important market for Honda Aircraft, and today’s agreement is a culmination of a two-year selection process to find the right partnership.”

Honda Aircraft remains focused on a worldwide sales plan and strategy. In addition to Skyservice, there are nine HondaJet dealer representatives worldwide to provide sales and product support to customers. Each of these dealerships will be prepared for the HondaJet entry to service and will provide customers the quality of service expected from Honda. The company is currently evaluating future expansion of sales and support beyond North America and Europe.

Fujino added, “We will continue to review all regions and markets for the HondaJet introduction, as our ultimate goal is to sell and support this advanced aircraft worldwide.”

For more information on Skyservice visit www.skyservice.com.

About HondaJet

HondaJet is the world’s most advanced light business jet aircraft, with best-in-class advantages in performance, comfort, quality and efficiency. The HondaJet is the fastest, highest-flying, quietest, and most fuel efficient jet in its class. The HondaJet incorporates many technological innovations in aviation design, including the unique Over-The-Wing Engine Mount (OTWEM) configuration that dramatically improves performance and fuel efficiency by reducing aerodynamic drag. This design also reduces cabin sound, minimizes ground-detected noise, allows for the roomiest cabin in its class, the largest baggage capacity, and a fully private aft lavatory. The HondaJet is powered by two highly fuel-efficient GE Honda HF120 turbofan jet engines, and is equipped with the most sophisticated glass flight deck available in any light business jet, a Honda-customized Garmin^® G3000 next-generation all-glass avionics system composed of three 14-inch landscape-format displays and dual touch-screen controllers. The HondaJet is Honda’s first-ever commercial aircraft and lives up to the company’s reputation for superior performance, efficiency, quality, and value.

About Honda Aircraft Company

Honda Aircraft Company, a wholly owned subsidiary of American Honda Motor Company, Inc., was founded in 2006 though has its heritage in more than 20 years of ground-breaking aeronautical research and development. At Honda Aircraft’s World Headquarters campus in North Carolina, the birthplace of aviation, the company’s associates work in more than 500,000 square feet of state-of-the-art R&D, Manufacturing and Administration Headquarter buildings to develop, produce, market and support the HondaJet with HondaJet dealers. The challenging spirit upon which Mr. Soichiro Honda founded Honda Motors is still alive today as Honda Aircraft fulfills one of Honda’s long-standing dreams to advance human mobility skyward.

For more information, visit www.hondajet.com.

Note for media: access Honda Aircraft’s media portal at https://hondajet.honda.com/news/index.aspx for high resolution images of the HondaJet.

Skyservice has been named the best fixed based operator (FBO) by Wings magazine in both Ontario and Western Canada. WINGS’ 2012 FBO survey uses third-party feedback on Canadian airlines and their support services to compile its results. It asks a range of questions regarding service, price and comfort. The competition was upped slightly this year with 62 FBOs named in the survey, up from 40 in 2011.

This is not the first win for Skyservice — the aircraft charter airline had previously won for best FBO in Ontario in the 2011 survey. Skyservice stands out again this year thanks to its state-of-the-art facilities and unprecedented FBO services in Montreal, Toronto and Calgary, plus its private aircraft charter services, aircraft management and maintenance service, all run by staff who are passionate about the Canadian airline industry.

Says Marshall Myles, Skyservice president: “This is an outstanding accomplishment for our dedicated team at Skyservice who always put our customers first, ensuring they are looked after with the utmost care. With thousands of flights coming through our FBO’s every month we want each and every experience to be a smooth, effortless and enjoyable one.”

To read more about these awards visit the Wings site or click here to read the WINGS press release.

Duty rules have long been a challenge for the busy business traveller doing short trips. Luckily, there are new duty rules for travel between the U.S. and Canada that are making things less of a hassle.

Why Pay Duty?

The idea behind having duty between the U.S. and Canadian border is to discourage importers and exporters from running goods across the border. And also to prevent avid shoppers from taking advantage of good exchange rates on either side and shopping excessively without staying long in the country.
But for those who are working and flying across our shared border, dealing with limits, paying duty and filling out duty paperwork is often little more than a nuisance. However is still worth knowing the rules to make the trip easier especially if picking up family gifts or a last-minute must-have souvenir.

New Duty Rules

As of June 1, 2012, there are now higher limits on what travellers can bring back over the border into Canada after a U.S. trip. Now, if you stay longer than 24 hours, you can bring back $200 in purchases and gifts without paying duty.

If you stay between 48 hours and seven days, that goes up to $800. And after 72 hours you get an additional $100 allowance for gifts, duty free — but you can only use this exemption every six months. (Business travellers who fly frequently will quickly use this exemption up.) For more detailed information on exemption amounts, see here.

The Limits

Unfortunately, there is no personal exemption for trips under 24 hours. That means those flying charter doing very quick trips will have to pay duty on any purchases or gifts they bring home.
That does not apply to alcohol and tobacco. You can always bring in a small amount for personal use: 200 cigarettes and 1 litre of alcohol, no matter how long you stay.

If you go over your limit, you must pay duty, which is a percentage of your purchases. The duty rate varies depending on what you’ve bought. If you’ve been away for longer than 48 hours, you get a favoured rate of 7 percent.

Smart Declaring

When you fly home, your crew will supply you with a declaration form. It’s important to fill this out honestly and have your receipts on hand. Omitting purchases on this form can lead to delays and seizures of the goods you’re bringing over. You may have to pay a fine of up to 80 percent of the value of these goods before getting them back. Alcohol and tobacco can be seized permanently. A vehicle transporting these undeclared goods can also be seized.

Any incident such as this at the border will go onto your record and could compromise your ability to enrol in the NEXUS or CANPASS programs. Border guards have the right to inspect your luggage and it’s your job to assist in a search and repack your luggage.

There’s more information on duty and seizure rules on the Canada Border Service Agency site.

When you fly for business, you’re often rushed. Keeping track of gifts and purchases is not your top priority — getting to your destination and dealing with the work at hand is. However, crossing the border by air or by land still has to be dealt with. Planning ahead with regards to duty for purchases and gifts, keeping all receipts and knowing something about personal allowances will help make crossing the border go a little bit easier.