ET Insider – October 21, 2010

Elite Traveler Insider –

October 21, 2010

Elite Traveler Insider

By Douglas D. Gollan, President and Editor-in-Chief, Elite Traveler Magazine  

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Welcome to the latest issue of Elite Traveler Insider, the bi-weekly newsletter designed to update our top partners on trends in the private jet lifestyle.  This information is provided to offer a better understanding of how to target these globetrotting elite travelers, their impact on your business and other trends that affect you.  Remember, private jet travelers are paying up to $10,000 per hour to fly by private jet, so these super rich consumers could be and should be your best customer.  We talk about them and how you can get more of them and more from them.

In this issue:

1. NetJets Makes Big Order for Private Jets

2. Luxury Institute: Don’t Look To Mass Affluent For Jewelry Sales

3. Private Jet Travel Bounces Back

4. Speaking Out: The Private Jet Industry Talks About Elite Traveler and What Their Customers Think of Us (We were thrilled!):

============================================================ Not another magazine or newspaper in that stack of unread mail:  With over six private jet trips every two months, that’s at least six chances for wealthy private jet travelers to see your advertisement in Elite Traveler. And even better, share it with friends on the jet! ============================================================

1.  NetJets Makes Big Order For Private Jets   NetJets Inc., a Berkshire Hathaway company, announced today the completion of a purchase agreement with Embraer to add up to 125 Platinum Edition Phenom 300s into the NetJets fleet. Terms of the deal were not disclosed.

This Platinum Edition aircraft, designed exclusively for NetJets, will feature technology and comforts based on the requirements of the NetJets fractional share Owners. This announcement is the first step in the execution of a 10-year fleet plan that will provide the company’s fractional jet Owners with the fleet options, safety, service and reliability they have come to expect from the worldwide leader in private aviation.

Today, NetJets operates a global fleet of more than 800 aircraft, representing 13 different fractional aircraft types from several aircraft manufacturers including Cessna, Dassault, Gulfstream and Hawker-Beechcraft. Since 2000, NetJets has taken delivery of more than 600 aircraft from both domestic and foreign manufacturers. Today’s announcement regarding the NetJets light cabin fleet will be the first of several to come in the next few years that will cover the midsize and large cabin fleets and will be in addition to orders already on the books to acquire more than $2.95 billion worth of aircraft.

According to Chairman and Chief Executive Officer David L. Sokol, “No one is more confident about the future of private aviation than NetJets. We continue to be guided by our vision to strengthen our leadership position by delivering extraordinary safety and service to our Owners. We are pleased to be in a strong position in our industry and proud to be announcing this order for an exceptional aircraft that our Owners will value for years to come.”

Owner research and a comprehensive view of flight patterns and service requirements contributed to the decision to select the Phenom 300. In addition, an extensive analysis was conducted at NetJets by multiple, cross-disciplinary teams representing flight crews, maintenance, flight operations, safety, sales, finance and owner services. “This is a high performance aircraft that is ideally suited to our Owners’ needs for reliability, range, interior comfort and operating efficiency,” said David Sokol. “It will be an excellent fit in an already diverse fleet that is unmatched in private aviation.”

Embraer President and CEO Frederico Curado added, “Embraer is indeed pleased and honored to have been selected by NetJets, a company recognized worldwide for the excellence of its operations and for an outstanding customer experience, to develop and deliver the Phenom 300 Platinum Edition.”

“The bottom line is that no one knows more about the needs and operational requirements of private aircraft Owners than NetJets,” added David Sokol. “We are really excited about the Platinum Edition because its customized design elements reflect our nearly 25 years of experience in Fractional Business Jet Ownership serving the needs of thousands of businesses and individuals that have told us exactly what they want in a light cabin jet.”

The Phenom 300 Platinum Edition will be developed by Embraer in cooperation with NetJets. The jets will feature technology and comforts based on the requirements of the NetJets fractional share Owners. Deliveries of the new aircraft are scheduled to begin in 2013 and will be executed in accordance with ongoing fleet management plans.

============================================================ With 41 trips per year, including 11 intercontinental trips and 3+ principal residences, we know where you’ll find elite travelers:  in their private jets and in private jet terminals.  It’s why we’ve invested in providing BPA audited circulation to private jets and private jet terminals in over 100 countries. ============================================================

2.  Luxury Institute:  Don’t Look To Mass Affluent For Jewelry Sales Some 33 percent of mass affluent consumers (MEDIAN HHI $233,000) say they plan to “trim spending” on jewelry this year, according to a survey by the Luxury Institute. Overall, 36 percent of respondents plan to decrease overall spending on luxury items in general, with just 6 percent saying that they will spend more. In addition, 37 percent report spending less since the beginning of the year, while 7 percent say they are spending more.

The survey did find that consumers are not as frugal as they were last year, when 45 percent of wealthy consumers planned to cut back on luxury spending.

However, discounts remain popular: 20 percent of wealthy shoppers say that they plan to spend more on discounted products. And 38 percent of wealthy consumers say that a significant discount will positively influence their decision to purchase.

 

============================================================ Spotting Fakes:  How can you be sure that a publisher is really sending out the number of copies he or she says?  How can you make sure they are actually putting copies on private jets?  Ask for the BPA or ABC audit statement.  You can find our BPA statement here. ============================================================

3. Private Jet Travel Bounces Back With the percentage of private jets for sale down to 15 percent, closing in on the normal level of 12 percent (and down from a 2009 high of 18 percent), executives of private jet companies were optimistic this week during the National Business Aviation Association annual conference in Atlanta.  Next year it will be in Las Vegas, an interesting twist uniting two of the recession’s victims that both happened to be in the wrong place at the wrong time.

NBAA President Ed Bolen opened the conference by telling 25,000 attendees, “We are out of our defensive crouch.”

A newly released report from Honeywell predicted approximately 700 private jets will be delivered to customers this year while Zenith Jet, a private jet sales company, released figures predicting nine percent annual growth over the next nine years.

According to Bolen, over 100 communities lost all or ‘substantially all’ commercial service, helping spur a private jet comeback.  Bolen said flight hours, the key measure of private jet activity, are up 13 percent this year.

============================================================ Would you buy a diamond without a certificate?  Would you fly on a plane that hadn’t been certified as safe to fly?  Would you buy milk in the supermarket that didn’t have a ‘sell by’ date?  Before you buy advertising, next time a publisher says they have distribution on private jets or in private jet terminals, ask for their Circulation statement from ABC or BPA.  Ask for them to show you the number of copies going to private jet travelers.  You can find our BPA statement here. ============================================================

 

4.  Speaking Out:  The Private Jet Industry Talks About Elite Traveler and What Their Customers Think of Us (We were thrilled!):

“We have locations in Aspen, Boston, Chicago, Dallas, Denver, Las Vegas, London, Long Beach, Long Island, Teterboro, San Francisco, Seattle, West Palm Beach and Washington D.C., and we put Elite Traveler on the jets with the catering.  It is the only magazine we distribute and we get great feedback about your magazine.” –   Paul Schweitzer, President, Air Culinaire Private Jet Catering “My boss loves your magazine because he is into nice watches and resorts.” – Scott Moore, Chief Pilot, Luck Stone Corporation, Dulles, VA

“They love it.  They use it to book hotels, and I have seen them pick watches to buy out of it.” – Dee Buchanan, Corporate Flight Attendant

“We had a passenger who saw an advertisement for real estate and went to see the property.  Our customers love Elite Traveler.” –  Tina Spence, CAS Aviation, Westchester County Airport, NY

“One of our customers decided to go to Trinidad after seeing an ad in your magazine.  They love it and it goes on all 10 of our aircraft.” –   Thomas May, Execujet Charter, Tampa, FL

“Elite Traveler is a gorgeous magazine.  Our clients like the articles and they always take it.  We carry it at our 40 FBOs.” –   Jo Schenkenfelder, Landmark Aviation

“We have over 30 FBOs and we put Elite Traveler on every transient and tenant plane and all of our lounges.  Elite Traveler is the only magazine we distribute for passengers.” – Sandy Nelson, Chief Business Officer, Million Air

“They take it with them on to the plane.  I’ve seen women get on their phone and buy jewelry from the magazine while they were waiting in the lobby.” – Eileen Venuto, Wilson Air Center, Charlotte, NC

“Our customers find it very informative and entertaining.” – Andresia Ferguson, Executive Flight Support

“We have passengers who will not take off unless Elite Traveler is on their plane.  One customer told me she uses your magazine to pick hotels and watches.” – Kattie Anderson, Wilson Air Center, Houston

“We put it on the aircraft.  It is a very nice magazine.” – Albethe Kemp, Executive Flight Support

“I come in the lobby and see them reading Elite Traveler and I see them taking it with them on to the plane.” – Michael Walker, Global Aviation, Portland, OR

“We distribute Elite Traveler in all our locations, including Boston, Teterboro, Dallas, Palm Beach, St. Louis, London, Moscow, Zurich, Geneva, Dubai, Jeddah, Riyadh and Singapore.  The response is amazing.  Our customers love Elite Traveler.  We also advertise in Elite Traveler because we know it reaches the person in the back of the plane.” – Michael Arnone, Jet Aviation

“I see our celebrity clients always take Elite Traveler.  They love Elite.  All our customers love Elite!” – Cathy Ferguson, Air Bound, Caldwell/Essex, NJ

“We’re based in Morristown but we fly around the world. They love to look through Elite Traveler during the flight.” – Nan Kramer, Flight Attendant, Honeywell Corporate Aviation

“Our customers love Elite Traveler.  They are VIPs and Celebrities.  I know they buy things right out of your magazine.” – Rebecca Gonzalez, Servair/Aero Base, Miami, FL

“Ladies love Elite Traveler.  We have customers from South America, and I know they refer to your magazine for their shopping.” – Giselle Nieves, Banyan Air Services, Ft. Lauderdale, FL

“I have had clients choose resorts in Mexico and also Ski Resorts from Elite Traveler.” – Fernando Zinyani, Air Services, Toluca, Mexico

“They tell me it is their best source for high end travel and products.” – Lori Browning, Duncan Aviation, Michigan

“They comment on the beautiful pictures. I’ve had customers show me fancy watches they bought from Elite Traveler.” – Haroon Quereshi, Imagine Air , Atlanta GA

“They enjoy reading Elite Traveler” – Jarrel Miner, Alliance Aviation

“On a scale of 1 to 10, Elite Traveler is a 10” – Arnold Gilbert, EFS Corporate Flight Department

“A classy magazine our customers love” – Peggy Zaun, AirFlite, Long Beach, CA

“Our customers find it enjoyable.” – Stefanie Kirkwood, Louisiana Aircraft FBO, Baton Rouge, LA

“Our customers like the features and advertised products.” – Michael Lawrence, Key Air, Twin Cities, MN

“They tell me they enjoy your magazine” –    Richard Kowanowski, Grey Corp. Aviation

“They love the magazine.” – Palbo Velarde, Aerolineas Ejectivas, Buenos Aires, Argentina

“In one word: Excellent.” – Michele Manger, Rifle Airport, Colorado

“Our customers tell us you have great content and they comment on the quality.” – Craig Walker, Castle & Cooke Aviation

“Women love your magazine.  We put it out and they pick it up.  They take it on the plane with them.” – Mike Kline, Avitat Boca Raton, FL

“I come in the lobby and see them reading Elite Traveler and I see them taking it with them on to the plane.” – Michael Walker, Global Aviation, Portland, OR

“An excellent magazine our clients love.” – Jon Boyd, Panorama Flight Services, Westchester County, NY

“We need more copies.  Our customers like it and within two weeks all our copies are gone!” – David Blackburn, Key Air, Oxford, CT

“Our passenger love Elite Traveler. It’s the first thing they ask for when they come in the FBO.” – Paula Evans, Jet Center of Dallas

“They love Elite Traveler.  They take in on the plane.  We have to always make sure we have copies out they go so fast.” – Andrea Pearl, Jet Aviation, Bedford, MA

“Limo drivers take copies to place in their limos for arriving passengers, and passengers love your magazine.” – Todd Dolphin, Avitat Westchester, NY

“We get top businesspeople and celebrities. We have passengers who I have seen choose hotels from your magazine.  When they stop (for refueling), we put it on their jets.” – Jens Kristbjornsson, South Air, Iceland

“We put Elite Traveler on all the jets.  Our clients often ask to make sure it will be on the plane, and I have had clients tell me they use your magazine to choose where they want to go, and what they want to buy.” – Randa Sassine, Vincy Aviation, Canouan (for Mustique), BWI

“We can’t keep Elite Traveler in stock.  Every time I look, our customers are either reading your magazine or they take multiple copies on to their planes.” – Susan Hancock, St. Thomas Jet Center, USVI

“I cover and oversee 60 FBOs in the Western U.S. for Air Petro and when I am in an FBO there are two things I always see:  Elite Traveler and the passengers reading your magazine.” – Paul Faurot, Air Petro

“Our customers like Elite Traveler, and I often see them reading it, and taking it with them on to the plane.” – Monica Camlova, Air Service Hawaii, Honolulu

“They love it and find new and great things.  One customer was reading an article on Mexico in your magazine, and changed his plans to go to the resort he was reading about.” – Robin Foster, Marathon Jet Center, FL

“Customers take Elite Traveler all the time.” – Patricia Patterman, Jet Aviation, Teterboro, NJ

“We put it on the planes and our customers tell us Elite Traveler is an excellent magazine.” – Vik Dhaling, Castle & Cooke Aviation

“They love to read Elite Traveler.” –    Cynthia Krider, Krider Aviation, Benton, AR

“Our customers love Elite Traveler.” – Al Archuleta, Atlantic Aviation, Las Vegas

“They say it’s beautiful.  The ladies love it!” – Rhonda Davis, Atlantic Aviation, Houston

“They ask to have it on their planes.” – Cherry Whatley, AirStar  Atlanta, GA

“Our planes operate around the world.  The spouses and guests love it. – Kristina Bauer, Conocco Phillips Corporate Flight Department, Houston

“I really enjoy your magazine and bought a Zenith watch you featured.” – Charles Ambar, Private Jet Owner, San Antonio and Scottsdale

“We put Elite Traveler on all our planes.” – Jason Denny, Vitesse Aviation, Dallas, TX

“We put it on our jets and they love it.” – Katie Godwin, SK Jets, Jacksonville, FL

“I saw the Jaguar XJ (advertised in the magazine) and took a test drive.  It’s a terrific publication.” – Daniel Titcomb, President, Amicorp Enterprises, San Diego, CA

“Our customers love Elite Traveler.  I know of specific trips to Europe and Mexico which were based on stories they read in your magazine.” – Evanan Romero, Cloud Break Aviation, Ft. Lauderdale, FL

“We give Elite Traveler to everyone, and everyone loves it.” – Liz Curtis, Woodland Aviation, Napa, CA

“Our customers love Elite Traveler.  They always ask for the new issue.” – Priscilla Ronillo, Fly Arkansas, Little Rock, AR

“They love Elite Traveler!” – Julia Spence, Heritage Aviation, Teterboro, NJ

“They are always impressed they are getting this beautiful magazine at no cost.  It is a great amenity for us to provide.” – Marcelo Alori, Argentina Ground Support, Buenos Aires

“We use it on all our aircraft.  They loved the ads for Raffles Resort.” – William Bohlke, Bohlke International Jet Charter, USVI

“In one word, Elite Traveler is great!” – Natasha Burton, FBO 2000, Antigua, BWI

“They really enjoy your magazine.” – Katie Jefferson, Naples Airport, FL

“We keep it on our planes and everyone really enjoys your magazine.” – Diane Townsend, Auburn University Flight Dept, AL

“They like Elite Traveler. If they don’t see it out, they ask for it.” – Susan Green, Concord Regional Airport, Charlotte, NC

“The pilots always make sure it’s on their planes.  I see women reading it whenever they are waiting.” –    Kate Smith, Cirrus Flight Operations, Minneapolis, MN

All the best,

Douglas D. Gollan Group President and Editor-in-Chief