NYTimes.com Article: Air Travelers' Safety Fears Are Boon for Charter Company

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Air Travelers' Safety Fears Are Boon for Charter Company

December 29, 2001

By JAYSON BLAIR




There have been many stories of business misfortune in this
postdisaster New York: companies that have been displaced,
or shuttered as the recession looms and pocketbooks
tighten.

This would not be one of them.

Todd M. Rome II, the owner of Blue Star Jets, a private
plane charter company, does not try to hide the fact that
he is taking advantage of some of the fears that came out
of the terrorist attacks on Sept. 11.

Indeed, Mr. Rome has been marketing his company as the safe
and secure alternative to commercial airlines since the
weekend after the attacks, joining private security firms,
military supply stores and lawyers who prepare wills as
some of the businesses benefiting from New Yorkers' fears.

One thing that makes Mr. Rome's success so intriguing is
that before the attacks, his business had all the makings
of a start-up failure - not to mention that, while it
promises safety and security, Mr. Rome is a blunt-speaking
founder with an interesting past.

Now, Mr. Rome says, Blue Star is flooded with requests from
corporate executives, wealthy families and others looking
for the sense of control and security that comes with being
able to fly privately.

Mr. Rome's claims cannot be independently verified, but the
National Business Aviation Association, a trade group for
private jet owners, says that charter company sales are up
by as much as 10 percent since Sept. 11.

The subtext of Mr. Rome's business model is not subtle.
"When you are flying with your family and your loved ones,"
he says, giving a carefully honed sales pitch, "there is
very little more important than security. If you are not
willing to pay the price, well then, who knows what could
happen?"

His principle is where there is a fear, American capitalism
will find a way for profits.

And how is he going to guarantee his clients' safety? Is
this just another smooth talker? Maybe, but Mr. Rome does
not hesitate to point out to clients that he has hired as
his security chief a former official at the Israeli airline
El Al, which has the best safety record of any airline in
the world (he declines to name the official for security
reasons). He will put bodyguards on the plane if that makes
his clients feel better. And secrecy is a key, he points
out.


All information, he says, including times, locations and
customers' identities, are kept secret.

"Nobody will know who's in the air and when you are leaving
but my staff," Mr. Rome explains to a client who is paying
$23,284 - not including catering - to fly 14 friends and
family members from Teterboro Airport in New Jersey to Los
Angeles. "We strive to be the best not only in our prices,
but also in our safety measures."

Mr. Rome says he does his best to give customers a sense of
control. Safety records? He gives customers his pilots'
Federal Aviation Administration dossiers and other flight
records, as well as the safety record for the plane.
Background checks? Each passenger must be cleared by
private detectives. Searches? Every bag can be searched by
hand at the request of the client or pilot.

"People want to have control, and I give it to them," Mr.
Rome says.

Mr. Rome, 32, says he is a former Wall Street trader. He
avoids questions that divulge detail by repeating
statements that do not answer them.

"Where did you work before this?" he is asked.

"On Wall
Street," he says.

"Where on Wall Street?"

"On Wall Street."

Mr. Rome has reason to be discreet
about his past. In April 2000, during the dot-com boom,
N.A.S.D. Regulation Inc., a subsidiary of the National
Association of Securities Dealers, filed a complaint
against Mr. Rome and a Manhattan company where he was the
president, the Millennium Securities Corporation. Mr. Rome
and the company were accused of fraud and illegal
manipulation of the initial public offering of stock for a
company that it was underwriting, Translation Group, a
company in Haddonfield, N.J., which offered software to
translate text in different languages.

N.A.S.D. officials said that Mr. Rome and others at
Millennium illegally made more than $5 million from their
handling of the public offering.

Mr. Rome denied the charges. In May 2000, without admitting
liability, Mr. Rome and his colleagues signed a settlement
in which the firm promised to leave N.A.S.D., not do
business with any of its members for two years and Mr. Rome
had to pay a $100,000 fine. Mr. Rome says that the
Translation Group initial public offering, which was in
1996, has no bearing on his present business.

In March of this year, Mr. Rome incorporated Blue Star,
which he operates from an Upper East Side office less than
a minute away from the apartment he shares with his wife,
Carol, and their two daughters.

The business, he admits, was not doing well when the
economy began to weaken over the summer. Then came Sept.
11. Suddenly, well-heeled families started doing the same
thing chief executives, athletes and music stars had been
doing for decades: renting their own planes.

Mr. Rome says the first calls came from people who had been
stranded after the attacks by the F.A.A. decision to shut
down the commercial airlines. Charter jet operators were
back up in the air several days before the commercial
airlines.

Then, as Congress and President Bush debated airline
security, Mr. Rome says calls began pouring in from people
wanting to fly.

Federal data shows that the nation's private jets are just
as safe as airlines. But critics note that charter
companies that use private terminals are not required to
run passengers through metal detectors or have their
baggage scanned, a point that airlines say makes companies
like Mr. Rome's more vulnerable to terrorist attacks.

Also, established charter companies say that start-ups like
Blue Star cannot offer the same menu of options because
they do not own their own fleets and must get in line to
lease planes from others.

Blue Star customers say that while Mr. Rome can generally
get access to a plane at most airports in the United
States, it is not always the size they need. Mr. Rome says
he has access to 1,400 planes, ranging from a 737 that can
carry nearly 300 people to an eight-seat Bombardier Learjet
that can go for less than $1,500 an hour.

Heavy jets, like the Bombardier Challenger 604 or the
Gulfstream IV, can take 14 passengers to Los Angeles from
New York for about $21,000. Lighter planes, like the
Learjet 31A/ 35, carry seven and cost under $2,000 an hour.


Blue Star offers candy, snacks and coloring books for
children free of charge. King crab, caviar, French wine and
other items come for an extra fee.

Mr. Rome says that some of his recent clients included a
family of five that paid $6,000 and made a round-trip
flight between MacArthur Airport on Long Island and
Montreal. Two families coming from Los Angeles - with 14
people total - picked up a student at the University of
Michigan, in Ann Arbor, and then flew to New York for
Thanksgiving.

Looking ahead, Mr. Rome says he is preparing for a time
when fear of flying is no longer the main motivator for his
customers. His plan of attack is to sell people on the fear
of waiting.

"I'll take you there faster, with less waiting on the
ground on both ends and closer to your destination," Mr.
Rome says.

He is already preparing to pitch to college students who
want to make winter ski trips to Vermont. He is offering a
special on that seven-passenger Learjet: about $1,800 an
hour.

http://www.nytimes.com/2001/12/29/nyregion/29JETS.html?ex=1010657732&ei=1&en=764c9b392add2ffa



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