Nicholas air: MAKINg PrIvATe AIr TrAvel PersONAl
Choosing a private-aviation services provider can be a daunting task, with thousands of such companies competing within a growing market. nicholas Air, while far from the largest, believes it offers a compelling value proposition that refined travelers ca
Velocci: Private-aviation services, from charter to jet cards, is an extraordinarily crowded market segment, with low barriers to entry. How does Nicholas Air differentiate itself?
Correnti: Think of Nicholas Air as a boutique provider with a selective base of several hundred members. We’re not the most expensive provider, but we’re not the cheapest, either. If all someone wants is transportation from point A to point B at the lowest possible cost, that’s OK, but that’s not Nicholas Air. We’re in the business of providing a consistently superior travel experience.
Our clients know that when they arrive at the airport for their flight, the aircraft they requested will be waiting for them, and it will have the Nicholas Air livery. They also know all of their preferred amenities—from the magazines they like to read to the snacks and beverages they prefer—will always be on board. It’s all about providing a highly personalized service.
Nicholas Air started out as an aircraft management company, correct?
That was in 1997, and our business has since evolved into a fullservice provider of jet cards, fractional ownership and lease shares. Today our most popular program is the jet card; we’ve seen substantial growth in this area over the years. Also differentiating Nicholas Air is that our business model is not predicated on using someone else’s aircraft to service its customers.
Unlike many jet card companies, we own and operate our own fleet. We employ no intermediaries whose aircraft are put out to bid based on their availability. Clients know they are buying services directly from a company that maintains, dispatches and operates its own aircraft, and that are flown by full-time Nicholas Air pilots. We believe this level of control translates into a much smoother, safer and more reassuring travel experience. It’s an important distinction from, say, 95 percent of jet card providers, who are only brokers and own no aircraft of their own.
You obviously have strong feelings about this part of Nicholas Air’s business.
Yes. I believe it’s a very important distinction when comparing companies. Owning our fleet and maintaining full operational control at all times ensures a safer, more reliable private air travel experience. Our pilots are assigned and dedicated to a specific aircraft type, which greatly improves the crew’s awareness and knowledge of the aircraft. All aircraft are maintained only by the manufacturer’s authorized service centers, ensuring all maintenance is properly complied with. The commitment we make to our members is that they will enjoy a Nicholas Air experience when they book their travel with us, and the biggest part of that is the airplane and the crew. We know—because we own and fly them—that our airplanes are going to meet the expectations our members have of us.
Nicholas Air continues to manage aircraft for owners, does it not?
Yes, and we’re seeing that part of our business grow, because the business jet market segment is on the upswing again. In addition to maintaining aircraft for corporations and individuals, Nicholas Air can help owners generate revenue by leasing them back to us to supplement our core fleet, thus helping the owner offset the costs of ownership. We also can help owners operate their aircraft more cost-effectively by allowing them to piggyback on network savings for everything from fuel to scheduled maintenance and training. In addition, owners have access to our fleet when their airplane is out of service or when multiple aircraft are needed, ensuring they always have access to an aircraft.
You refer to your clients as members. is there a membership fee associated with purchasing flight hours from Nicholas Air?
There are no recurring annual fees, initiation fees or membership dues like many other private-aviation companies charge. Our members simply pay for a block of hours up front when using the jet card, which grants them acceptance into our program and access to our fleet. It’s very straightforward and transparent. But we do not allow just anyone to join. We vet each prospect to ensure they are a good fit for our program, which is why we refer to our client base as members.
You described Nicholas Air’s jet card as the company’s core business. What makes it so popular?
First, it’s ideal for introducing people to private aviation and for anyone planning to travel between 15 and 60 hours a year. second, there is no expiration date of the hours or aircraft repositioning fees. And third, the jet card gains the member access to our fleet, which averages 5 years old and newer. That’s huge with our membership base, and there are not many in the industry that can say this. With many other aviation companies, people may not realize they’re dealing with a service provider that claims it owns 1,000 airplanes, but in reality, doesn’t.
What’s the cost of purchasing a jet card?
The lowest price point is listed as $4,298 an hour.
Your core fleet comprises a mix of jets and turboprops; i was under the impression that air travelers, given a choice, would prefer to travel on a jet. What’s the rationale for turboprops in your fleet planning?
We own and operate five PC-12s. In addition, we have a fleet of CJ3s, Phenom 300s and Phenom 100 jets, and the Citation latitudes, which enable our members to fly coast-to-coast nonstop. The Pilatus is a great offering, with seating for up to eight people. Furthermore, we are the only company to offer a PC-12 in a jet card format, which appeals to cost-conscious individuals and corporate members.
The biggest appeal of the PC-12 is that it can land at many smaller airports that otherwise would be inaccessible. It’s a private-aviation workhorse. Based on comparable cabin size, the Phenom 300 would be a good apples-to-apples comparison. On a 45-minute trip, the PC-12 would take about 10 minutes longer— not a huge difference—but cost about $1,500 less.
Do you have any plans to expand the size of your fleet or add additional aircraft types?
We try to add a minimum of two aircraft per year. Currently on our radar is the longer-range longitude. Our decision whether to incorporate it into the fleet will be based on members’ demand.
exactly who are your customers or members?
sixty percent are leisure travelers; 30 percent are business travelers and companies, including large corporations that need to supplement their corporate lift; and the remainder are individuals and retired couples who sold their business or aircraft and still want to continue utilizing private air travel. As much as 80 percent of all new business comes from referrals.
Where does digital fit into your business strategy?
We’ve had a lot of conversation internally about that. Our concern is the potential for social media to take away from person-toperson interaction with our members. We assign a 24/7 personal travel representative to every member. There’s no calling a general number or going through prompts to reach a live person or leave a message. It’s direct communication using a personal mobile phone number, and the representative will respond to whatever the member needs—from booking a flight to a special catering request to purchasing an anniversary gift. We don’t want to risk losing the human touch.
Our biggest concern is the millennial generation, since they’re all about digital communication, so it remains to be seen how important personal attention is to them. A large part of the Nicholas Air experience for our members is knowing that a dedicated representative is there and available to provide that high level of personalized service to them. That’s a layer to the Nicholas Air culture of hospitality that technology cannot replace.
You currently serve more than 9,000 airports throughout the Americas and the caribbean. Do you have any near-term plans to expand your network?
Nicholas Air is family-owned and operated, not private equity or funded by investors; no one dictates how we should or must run our business model, except for our members. We invest in our members, so where we fly and the aircraft we purchase all depends on what they have to say and need. Nicholas Air is not your run-of-the-mill private-aviation services provider; we listen and respond to our members’ wishes.