Celebrity Jet Charter Creates New Revenue Stream for Operators

Posted on December 1, 2005 by LCT Staff - Also by this author

While some limousine operators transport corporate and celebrity clients to private jets, Dennis Adams has found a way to make a commission on the actual jet charter itself.


Adams, president of Celebrity Limousine & Transportation Services and Livery Coach Software in Malvern, Pa., launched Celebrity Jet Charter at the LCT Eastern Conference in September to a favorable response. His newest endeavor links private charter jets with the chauffeured ground transportation industry. Limousine operators can directly book charter reservations for their clients with Celebrity Jet Charter and will earn a commission for referring the business, offering a revenue stream and value-added service for clients using chartered jets.

“Some limousine operators are taking about 20% of their clients to fixed-based operators (who manage private airports),” Adams says. “Limousine operators can now earn a 3% commission on the jet charter trip as well as make themselves more valuable to their clients. Their only investment is changing their marketing materials to announce that they now offer the jet charter booking service.”

The corporate client can pay Celebrity Jet Charter directly for the charter with a credit card or bank check and Celebrity Jet will pay 3% to the limousine operator; or, the limousine operator can pay Celebrity Jet for the charter and invoice its client, charging whatever mark-up the operator chooses.

Celebrity Jet Charter has assembled a nationwide network of top-rated charter services, featuring some of the best-known charter jet carriers. Limousine operators only need to pick-up the phone and call Celebrity Jet Charter for rates, booking and billing, offering all-in-one-phone-call convenience.

Currently, limousine operators who want to book charter jets for clients must call Celebrity Jet Charter, but that will change in the first quarter of 2006. At that time, users of Livery Coach Software will be able to find rates and make bookings online, Adams says. Another future modification for Celebrity Jet Charter is marketing the service to wealthy individuals who use charter jets.

Two other innovations for Celebrity Jet Charter are guaranteed 48-hour pricing once a rate is quoted and one-way pricing. If the trip is booked at least 48 hours in advance, one-way pricing is available. Traditionally in the jet charter business, only round-trips can be purchased. One-way pricing offers clients considerable savings.

Average Jet Charter U.S. Hourly Rates

It can easily cost a corporation about $50,000 to fly an executive from Los Angeles to New York and back again using a charter jet. While this may seem excessive compared to the cost of a first-class flight on a commercial airline, it does make sense when you consider the cost of a top executive’s time. For example, a COO making $5 million a year earns roughly $2,600 an hour. This COO could travel to more than one city per day using a charter jet or attend additional meetings in the same city. This would not be realistic with a commercial flight given the extra time needed for commuting to the airport, getting through security, waiting for the flight, sitting on the tarmac, flight delays, etc.

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