June 13, 2008, Newsletter Issue #76: Major Airlines Bid for Share of Corporate Jet Market

Tip of the Week

Major airlines are bidding for a piece of the corporate jet market. United Airlines, the second largest airline in the country, is working hard to win back their first class customers by taking a different approach to the corporate jet industry. Over the last several years, service in the airlines business has been on a steady decline. Compounded by longer lines at ticket and screening stations, the major airline carriers have been driving travelers to private jet service for their travel. According to United Airlines executives, the airline giant plans to launch 200 private corporate jets that seat six to 14 travelers over the next five years. United’s strategy is to offer fractional ownership in the aircraft rather than selling tickets for seats. This means customers will purchase a piece of the plane and that "ownership" will allow them travel rights as specified in the contract, granting greater freedom of travel and scheduling.

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