Corporate Versus the Economy

Segment Update: Corporate Versus the Economy
As taken from:
http://www.aviationtoday.com/rw/commercial/tourism/26339.html
Douglas Nelms
Rotor & Wing Magazine

“…Some areas are reporting strong growth in the corporate charter market, particularly the market for flights from New York City to the Hampton beaches on eastern Long Island.

For Keith Vitolo, owner of Mamaroneck, N.Y.-based Awesome Flight LLC, the business for runs from New York City and Westchester County to the Hamptons has been very successful.

“I get a lot of Hampton trips,” Vitolo said. “There is a mix [of business and non-business people]. Probably 60 percent or more customers charter for the benefit of their business. The majority maintain a better work/life balance by saving wasted commuting time which can be used with their business or personal lives.”

The New York area actually has numerous competitors in the corporate charter business, ranging from Vitolo and his Robinson Helicopter R44 to operators of Eurocopter AS350s and S-76s.

“But the helicopter business has really been booming,” Vitolo said. “You’d think with a depressed economy business would be slow. But the wealthy will always be wealthy, and even for the business person who may be struggling, they are going to realize the value of time savings. If they need to get somewhere to make a deal, speed is of the essence. If they don’t get there quick, they lose the opportunity. So you look at the time savings as an opportunity. More than 90 percent of my customers pay for their flights personally, even though they may be business-related. In economic downturns, it can be hard to justify charter to large corporations, even when to not charter may be penny wise and dollar foolish.”

Charters are by Davis Aviation, Inc and Vitolo has access to additional R44s nationwide operating under their certificate in addition to his own. Vitolo said that his business has doubled each month since he started flying charters early this summer.

Prior to starting this operation, Vitolo was a banker specializing in aircraft finance. “We were doing a lot of helicopter loans, perhaps more than the bank wanted us to do. Banks tend to be risk-averse, and view helicopters as risky business. I had to prove to them that these loans were no riskier than any other aircraft loan and that they were good loans with guarantors and collateral backing them. In the aviation industry the helicopter segment is generally doing very well.”