Luxury Travel on a Tight Corporate Budget

Sometimes there is a concern that luxury travel poses a serious challenge to a tight corporate budget. It's true that luxury charters combined with tight budgets are often perceived as oxymorons, but the reality often refutes that belief. When a group of executives needs to travel, the total cost of first class commercial tickets compared to the cost of a charter flight is quite comparable and will keep the budget mavens satisfied, too. If flight schedules require changing airplanes and a possible overnight stay becomes reality due to late departures, the costs of a charter actually may result in overall savings.

Consider using a Charter Brokerage instead of a specific charter operator. Brokers are not owner operators, so your choices of luxury jets are not confined to their own aircraft. They have working relationships with nearly all luxury private jet operators, giving you a far wider choice of aircraft – and available cost saving deals. You might enjoy the same luxury jet charter flight at a reduced rate if a carrier wants to get their aircraft airborne.

Depending on your desired flight times, you might also locate empty leg flights to help with your budgetary constraints. You can sometimes save up to 40% on typical luxury travel fees by taking advantage of available empty leg flights that fit your trip schedule and you'll still enjoy first class travel.

For more information, contact Charter@QuintessentiallyAviation.com .

G150 SETS SPEED RECORD

G150 SETS SPEED RECORD

Gulfstream's G150 demonstration aircraft recently set a world speed record between Gander, Newfoundland, Canada, and Geneva, Switzerland, beating the existing record by 37 minutes.
The wide-cabin, high-speed aircraft travelled the 2,464 nautical miles (4,563 km) between the two cities in 5 hours and 6 minutes. Its average cruise speed was Mach 0.80.
Pilots for the flight were International Captains David Steinfeldt and Nick Rose. The aircraft, en route to the 2011 European Business Aviation Conference and Exhibition (EBACE), carried four passengers.
The G150 has a range of 3,000 nautical miles (5,556 km) at its normal cruise speed of Mach 0.80.
The National Aeronautic Association has confirmed the record and sent it to the Federation Aeronautique Internationale in Switzerland for approval as a world record.

Article on Bart International

Can you escape the VAT clampdown on private jets?

Flying your own plane or executive jet got a lot more expensive this year following a change in the UK VAT law on the supply or importation of private aircraft. 

Zero-rating shifts from weight to usage
In simple terms, under the old regime the VAT liability of the supply of an aircraft depended on its weight. The weight of an aircraft is easily established (it is published in the aircraft’s manual). If this was less than 8,000kg, the aircraft did not qualify for zero-rating.
Under the new rules, to qualify for zero-rating the aircraft must be one that is used by an airline operating for reward chiefly on international routes.

What counts as a qualifying aircraft?
Essentially, the aircraft will be a ‘qualifying aircraft’ for VAT zero-rating if all of the following apply:

• The aircraft is to be used by an airline – this is defined as an undertaking that operates passenger or freight transport services.
• It is providing such transport in return for consideration – normally payment in money.
• The airline as a whole operates chiefly, ie more than 50%, on international routes – as opposed to domestic routes.

A shock for some private jet owners
It means that no matter what size the aircraft, unless these conditions are met, VAT will now be payable at the standard rate of 20% on the purchase of an aircraft in the UK or on the importation of the aircraft into the UK.
This has come as something as a shock to those owners who, owing to the size of the aircraft, formerly benefited from zero-rating.

As of 1 January 2011, unless the owner operates the aircraft for reward chiefly on international routes, the supply or importation of it will be subject to VAT at 20%. Considering that the average private jet could set you back between £3 million and £10 million, adding another 20% is likely to have a major impact on the market. Indeed, a good friend of mine is a private jet captain and is increasingly concerned about the future of private ownership in the UK and for his job security.

Part-ownership or renting option
All of this adds to the burden of ownership and is another reason why an owner may elect not to buy outright, but simply buy time on an aircraft or go down the fractional ownership route.
Either way, the new regime is not good news for owners. It is far too complicated and far too easy for mistakes to occur, which can carry heavy penalties. One can only hope that someone in HM Revenue & Customs will recognise this and make appropriate changes to the law.

Article provided by Graham Brearley at Grant Thornton.  Image: © Yorick R