JetDirect Aviation: A Next-Generation Empire
By Karen Di Piazza -- September 12, 2006

Private aircraft management firm JetDirect Aviation, LLC, Berwyn, Pa., has acquired several charter, fixed-base operations and maintenance providers across the country. To help manage its business, and to continue acquiring more companies, JetDirect brought in Brantley Partners, HSBC and AIG as equity partners.

On Sept. 1 JetDirect acquired the assets of Spirit Aviation Inc., a Part 135 charter and Part 145 maintenance provider headquartered at Van Nuys Airport (VNY), California, with three additional bases at McClellan Airport (MCC) in Sacramento, Calif., San Carlos Airport (SQL), San Carlos, Calif. and Westchester County Airport (HPN), White Plains, N.Y.

Last week, Sept. 7, Jet Direct acquired the assets of Regal Aviation, a Part 135 operator and FBO at Dallas Love Field (DAL) in Texas, which both Aviation International News and ProPilot magazines ranked as one of the top 2006 FBO providers in the country.

"With the addition of Regal Aviation, it has increased JetDirect's combined charter fleet to 64 aircraft, including light jets to long-range heavy jets," said Gregory Campbell, chairman and CEO of JetDirect.

David MacDonald, former president and CEO of Regal, now director of flight operations of JetDirect, says in the near future they will double the amount of aircraft--all under JetDirect's name. Right now, though, they are waiting for the Federal Aviation Administration to consolidate all the aircraft onto one certificate, which can't happen fast enough for JetDirect.

"We're now a force to be reckoned with--on a national scale," MacDonald said. "We're currently letting our existing customers know how we'll be investing in continuous improvements and we're inviting new customers into our ranks. In the next 12 months, we'll continue strengthening our infrastructure to capitalize on our breadth, launch new products and exploit market opportunities. Currently, JetDirect's family of operators performs more than 100 flights a day."

Taking a closer look, you begin to see how significant all of this is. Acquisitions of this magnitude, such as with JetDirect, which will be able to service regions in Mexico, Europe and the Caribbean, is bane for small charter operators in U.S. that are struggling to stay alive. It's apparent that the air charter industry is consolidating. Many industry experts have predicted that the only way to survive in today's charter market is to consolidate, and then offer consistent global services. MacDonald, too, believes that's a true assessment.

"The industry will see more of this; we'll be taking a lead role in it, too," he said. "With more than 3,000 operators across the U.S., the customer sees little consistency in product delivery."

He said that with too many product offerings, customers aren't always receiving a high-level of service.

"Many programs are seen as a commodity," he explained. "Those who fit that description are having trouble making their margins and retaining their customers. JetDirect brings a unique product to the market that helps us operate a profitable business, while growing market share. We think big and act local.

"No other offering will deliver that kind of consistency through all aspects of a given travel or jet operation experience--sales, flight preparation, dispatch, FBO, maintenance and aircraft management. That's comforting to the private jet market. We'll also be able to address procurement in volume, so that, for example, insurance can be structured at the highest level."

He said that JetDirect offers on-demand charter, jet membership and jet ownership programs. JetDirect has also acquired FBO JetCorp at Spirit St. Louis Airport (SUS), Chesterfield, Mo. and Summit Aviation at Republic Airport (FRG), Farmingdale, N.Y.

"The buzz we've stirred up has been as exciting as the opportunities we're creating," MacDonald said.