VistaJet chairman THOMAS FLOHR spoke to Shalu Chandran at MEBA last month.
What brings you to the Middle East?
We have seen very good success with the brand and the product in Europe and the former CIS countries, also in South East Asia, and there is an interesting market between Europe, Russia and SE Asia, so the Middle East and India was the next natural step. We see this market here being very demanding in terms of the quality of the product and that is good for us. Our market analysis shows that there is no six star service in the air and we want to provide them with that.
We invested a lot into the cabin and the service and for the first time in private aviation, Vistajet has built an identical fleet of aircrafts, so clients know exactly what they are getting. The market that we are targeting is just one small level below ownership. And there is a huge market for this. We also only operate an aircraft for only three years and then sell them. So every three years I have the opportunity to adapt the cabin to evolved tastes.
What is your appeal for the upmarket corporate sector?
First and foremost, especially in the current financial crisis, we can offer a very competitive price. We price ourselves about 15 per cent below the competition and we can achieve because we have the lowest number of empty leg flights because of our aircraft.
We also offer the highest exclusivity in the sky. So, our combination between product and price really allows us to be very competitive in the market.
The key in this business is to avoid empty sectors. A lot of aircraft have to fly empty back home, so if you do a one way charter from Dubai to Paris, the plane has to come back empty from Paris. For me, my fleet is big enough that I never have to bring it back empty to homebase.
What are your immediate plans for the region?
With our acquisition with Skyjet we have inherited an office here in Dubai where we will initially base two aircrafts. So immediately the commitment to the region is here. For me, the Middle East is an absolute priority for the company.
What is the product that you have on board?
Each aircraft is designed in the signature VistaJet style with plush interiors and specialist on board services. The all Bombardier fleet features state of the art, medium to ultra long range jets. It currently consists of Learjet 40 XR, Learjet 60 / 60 XR, Challenger 300, Challenger 604 / 605, Challenger 850 and Global Express XRS jets. We currently have 22 aircrafts and this number will increase to 35 in 2009.
Tell us about the VistaJet Flight Solutions.
We offer ownership, partnership and membership programmes for our customers. The cost of ownership through VistaJet is up to 20 per cent lower than fractional or other ownership programmes. Customers get the benefit of owning an aircraft, and paying one simple quarterly payment. Our partnership programme is more flexible without the capital costs of ownership and is highly suited to 100 to 400 hours travellers.
The membership programme is a flexible block hour membership concept offering discounted rates on cards of 25 hours or more with guaranteed aircraft availability, fixed pricing per route, zero fuel surcharges, no peak day restrictions, and a 20 per cent discount on same day return flights. Till a year ago, the trend was towards ownership but now it is more on partnership.
Why is the market for private aviation increasing and where do you see it going next?
Over the next couple of years we will see a huge shift from commercial to private aviation. People want to avoid time on ground. This industry from a production point of view has room for development. The product is not defined and people love consistency. The business will develop to a higher quality consistent product.
What are your ambitions for the company?
We are projecting a 50 per cent increase in revenues this year and expect our fleet to be logging around 80,000 flight hours annually by 2012.