FlightTime.com Develops New Air Charter Models

<B>FlightTime.com Develops New Air Charter Models</B>

By David Jonas

Filling the need for charter services in an increasingly high-priced and congested airline industry, FlightTime.com has expanded into new areas, simplified the process for travel arrangers and brought charter opportunities to a larger number of corporate travelers through new partnerships.

The Waltham, Mass.-based company now offers an array of charter service programs, including new GDS relationships, guaranteed hourly rates for members, travel agency programs, corporate shuttles and even a loyalty rewards program. "We are trying to round out our offering to provide the corporate travel world with cost-effective, efficient alternatives packaged in new and innovative ways," said CEO Jane McBride.

This autumn, Amadeus and Worldspan each partnered with FlightTime to provide online access to commissionable charter reservations. Travel arrangers through either the E-Business@Amadeus or Worldspan Go platforms now can access FlightTime's booking engine and price itineraries, locate thousands of smaller airports, view aircraft photos and make domestic and international reservations for more than 2,000 private aircraft.

FlightTime also has a marketing arrangement with Sabre BTS and is eyeing deeper integration. "As they migrate from mainframe to Web-based, we can incorporate more content. We are ready as soon as they are," McBride said, adding that discussions also are underway with Galileo. "The GDSs are looking for ways to add value and charter brings something new to the dance."

Though FlightTime would not divulge the level of commission for agents booking charter flights, "in most cases" it will be above the $50 maximum paid by major airlines because of the generally high price of such services.

In a further effort to appeal to the travel agency community, FlightTime is in the midst of renewing and expanding preferred supplier relationships (BTN, May 3, 1999). Other charter companies, including Air Partner, similarly are working more closely with travel agencies (see sidebar).

"We want to work as a team to present a suite of services to corporate clients," McBride said, adding that Navigant joined American Express in the preferred roster and that preliminary talks have begun with several others. Such partnerships can facilitate corporate shuttle programs, such as the one developed early this year at Procter & Gamble (BTN, March 20).

McBride said P&G already has reaped "substantial savings" from its corporate shuttle arrangement with FlightTime as passenger numbers steadily increase. Others also are interested in establishing similar programs, particularly Fortune 50 corporations with heavy traffic in certain high-priced city pairs.

In fact, FlightTime has another one in the works for transatlantic travel on a Boeing business jet. It also has an informal partnership with Airbus meant to "source new shuttle opportunities."

In an effort to fill another niche, FlightTime this month launched a membership-based program guaranteeing hourly rates for charter services. "We have created a plan marrying the best of fractional ownership with the flexibility of traditional chartering," McBride said. "It gives members guaranteed availability and response time without a serious cash outlay, multiyear commitment or ferry leg charges."

The model, dubbed the Freedom Plan and designed for frequent travelers, levies charges by the hour based on aircraft size. Aircraft are offered in light, midsize and heavy, with some interchangeability possible within the plan.

The program also includes sedan transportation to and from the airport within a 20-mile radius and enables members to manage their accounts on FlightTime.com's Web site.

"The target customers are corporate flight departments, possibly looking to complement fractional ownership," McBride said, noting that one launch customer already is looking at purchasing as many as 200 hours.

Meanwhile, monthly sales through FlightTime.com's online booking system--the former AirCharter.com--have been increasing. "The clientele really is across the board and we are seeing a lot of repeat business," McBride said. "People are finding out that not all online reservations systems are alike and the quality of service varies greatly.

FlightTime.com' offers 24-hour customer service, weather tracking and flight monitoring. The customizable inflight experience can include catered meals, business equipment, such as fax machines and Internet connections, sleeping quarters and meeting space.

Pricing for charter flights is based on type of aircraft and other factors, and according to FlightTime, generally is the same or lower than going directly to any of the individual operators.

Recognizing the insatiable hunger for frequent flyer miles, FlightTime developed AirCharter.Miles. Actual miles flown are accrued by whomever books a charter flight--agents may pass them along to their clients--and redeemed by Delta, Ritz-Carlton, Royal Caribbean and several other travel suppliers and merchandisers. FlightTime.com automatically calculates distances and updates users' accounts.