Flight Options, Chauffair Link

Flight Options will team with Chauffair -- a U.K.-based charter operator -- in a bid to sell shares of new Cessna Citation Excel aircraft and help open Europe to U.S. fractional customers.

The deal represents a departure for the Cleveland-based fractional ownership business, which hitherto has stuck to selling shares of used business jets in the U.S. domestic market.

Kenn Ricci, Flight Options chairman, said the deal mainly targets U.S. customers seeking limited lift in Europe, and that the partnership with Chauffair will offer shares for as few as 10 block hours of flight time.

"Fractional ownership is uniquely American," Ricci said at the NBAA show. "By using a Europe-based partner, we avoid registration issues and problems connected with linking share owners from different countries."

Chauffair ordered seven Excels 18 months ago, and recently upped its order to nine aircraft. Nick Probett, the company's managing director, said negotiations for the purchase of up to 15 additional Excels are underway with Cessna.

Three Hawkers (two 800s, one 700) already in Chauffair's fleet will form the core of Flight Options' European initiative until the Hawkers arrive in force; the first is expected next summer.

Chauffair's Shares leasing venture will continue, though three Lear 35s now in the program are likely to be phased out in favor of additional Hawkers 800s.

"Due to tax regulations, it's much easier to sell blocks of occupied-only hours than it is to sell shares in aircraft," Probett said.

Flight Options' fleet has grown from 76 to 82 aircraft over the past year, with a corresponding growth in revenue from $285 million to $320 million. Ricci claims 512 share owners or 38.75 whole aircraft, up from 166 shares a year ago.

Ricci said the largest growth area has been in "quasi-business use" by corporate share owners--primarily on long holiday weekends.

By Paul Richfield