Dan's Papers - June 29, 2007

When it comes to real estate, the Hamptons is ranked as the wealthiest region in the nation. With it comes the need for its residents, business owners and visitors to access effective travel.

Because of a variety of unique marketplace conditions, the deployment and use of private luxury air jets has really "taken off." Clearly, the roadways getting to the Hamptons are already overcapacity. The likelihood that these roads will be expanded (which thus invites and encourages even more traffic) is slim. The ability of mass transit to carry much of the seasonal population swell is limited, and there are very few improvements expected in the foreseeable future.

For the wealthy, elite population, air travel especially from the New York tri-state, Northeast and Middle Atlantic regional airports makes a lot of sense. The availability of private aircraft is better than ever. In 2001, there were about 1,450 luxury private jets registered in the US. In 2007, there are now more than 17,000. It is due to security changes made with 9/11, the tax benefits to jet ownership made possible through the Bush administration, the emergence of a global class with extraordinary wealth only achieved during several periods in world history, and now, being the first time ever since private jet travel became viable and the horrible service offered by commercial airlines and commercial airport terminals.

About 80% of private jet owners put their aircraft up for charter because of the cost benefit analysis of doing so. This has created a cottage industry of businesses, which do not have aircraft ownership, but now handle brokerage, leasing and rental transactions for this sector. There are probably 1,000 of these enterprises in America.

There are only 550 commercial airports in America while there are about 6,000 private airports. Furthermore, the range, capability and versatility of a private jet to take-off, fly and land in what otherwise might be viewed as limited bad weather conditions, is much easier (all with safety considerations).

As with any growing industry, it is important that the consumer undertake due diligence to investigate the costs and pricing involved and to make sure they are dealing with reliable, reputable operators. Unfortunately, this industry, like many, is open to fraud and business transaction disputes

Luxury Air Jets is a member of most recognized trade/industry peer safety standard organizations such as ARG/US, the National Air Transportation Association and Wyvern Aviation Safety Intelligence. Only 5% of the operators are members of these groups.

Luxury Air Jets only use aircraft that are rated platinum, gold and silver, when it comes to performance, safety and maintenance. As an example, only 7% of the vendors are platinum or gold-rated. There are many aircrafts that do not compile these ratings. It is important for the consumer to do the proper research and obtain credible references to assure a pleasant, qualitative experience. The consumer engaging the vendor should be able to ask as many questions as possible up front and in advance. The vendor should be as forthcoming and direct as possible, in the interests of a successful, effective experience for all concerned.

Is the use of private jet aircraft a luxury and indulgence of the wealthy? To some extent it is, bearing a relationship to the consumers who buy cars such as Mercedes, Porsche, Bentley or Rolls Royce.

However, even one of the best known money management advisors today, known for her level practicality and bluntness, will tell you about the value she sees in private aircraft travel. Suzy Orman, in a recent New York Times Sunday Magazine article said that flying private is her greatest pleasure and she spends about $300,000 to $500,000 a year on it.

Of course, there is a school of thought that harbors jealousy and views the province of private aircraft travel as snobbery, privilege and class distinction. In contrast, I applaud these people in terms of the wealth and position that many of them have accomplished. And what has been evolving in the past six years has led to a stand- alone industry sector that continues to grow. Technology advances will fuel more expansion in the next decade that will enable even a broader population segment to use this form of transportation. This translates to more jobs, vendor opportunities and entrepreneurship available in America.

For more information on private luxury aircraft visit www.luxuryairjets.com or call 1-866-420-5060.