Charter jet company flies in face of weak economy

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Charter jet company flies in face of weak economy
By James McNair, The Cincinnati Enquirer

CINCINNATI =97 Corporations are saying no to spending. Consumer confidence=
 is=20
at a nine-year low. The U.S. economy is barely beating. And in Cincinnati,=
=20
the nation's largest charter jet company is adding planes, employees and=20
service as if the recession never happened. The growth of Executive Jet=20
Management appears to defy reason. While the business world slumbers, the=20
39-year-old company based at Lunken Airport is somehow expanding the size=20
of its fleet beyond that of many countries' air forces. Last year's 37=20
percent increase to 97 aircraft wasn't nearly enough; this year, the=20
company projects adding 45 more. "At a time when other charter companies=20
have been laying off people and the business is slumping, we've been=20
growing 15 to 18 percent a year," said Albert Pod, Executive Jet's=20
president and chief executive since 2000. All of this growth doesn't=20
manifest itself at the company's 278-employee operation at Lunken.=20
Executive Jet has 50 locations across the country, from Florida to New=20
England to California and Alaska, and only seven of its jets are at Lunken.=
=20
Its payroll is pushing 600 people, the most recent hires occurring in=20
Teterboro, N.J., where the company opened a sales office in February to=20
generate more business in the Northeast.

Wealthy people and business owners aren't going to let a little recession=20
crimp their style. Hollywood celebrities, professional athletes and other=20
jetsetters hire companies such as Executive Jet to transport them to the=20
Academy Awards, sporting events, vacation spots and distant homes, Pod=20
said. Some charter jets regularly, others just once or twice. The pilots,=20
engineers and mechanics work for Executive Jet, but the planes belong to=20
other companies and are certified for charter duty in the Executive Jet=20
fleet. "We manage aircraft for corporate America, mainly Fortune 500=20
companies," Pod said. "The Fortune 500 companies generally are not in the=20
aviation business and realize that there is a company with aviation=20
expertise that has the decision-making and buying power that they don't=20
have." Executive Jet flies Gulfstreams, Falcons, Citations and other makes=
=20
all over the world. Last year, Professional Pilot magazine rated Executive=
=20
Jet as the best charter jet company, according to a survey of its=20
subscribers. It was the fifth year in a row that the company won the honor.

Corporations that operated private jets during the go-go years of the 1980s=
=20
and 1990s often sacrifice the jets in downsizing programs or after CEO=20
changes. Afterward, companies either charter jet service or buy fractional=
=20
shares of jets, much like people own fractional shares of condominiums=20
through time-sharing. "The ownership of business jets, and the finances of=
=20
that, is being examined in corporations more than it ever has before," Pod=
=20
said. The time-sharing of private jets is the niche of Executive Jet's=20
sister companies. Together, they are owned by NetJets Inc. of Woodbridge,=20
N.J. Under its previous owner, New York businessman Richard Santulli,=20
NetJets executed the fractional ownership concept so well that legendary=20
investor Warren Buffett bought the company for $725 million in 1998. As a=20
result, NetJets and its Executive Jet subsidiary are part of Buffett's=20
Berkshire Hathaway conglomerate in Omaha, Neb. Pod says the ownership gives=
=20
Executive Jet an ample financial well to draw from. And Buffett, he said,=20
doesn't make a habit of nosing around the operation in Cincinnati. "He's=20
been here, but he doesn't like to make a big deal of it," Pod said.=20
"Generally, he speaks to private wealthy individuals."


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