Global Air Charters Plans Fleet Expansion and Part 91 Growth
Global Air Charters (GAC), based in the United States, is planning significant growth in its operations, including adding aircraft to its Part 135-certified fleet and expanding into the Part 91 aircraft management sector. CEO Michael Vanacore-Netz discussed these plans during an exclusive interview at the World Aviation Festival in Las Vegas, emphasizing the company’s goal to enhance its core business.
Expanding Fleet and Diversifying Operations
Currently, Global Air Charters operates a Gulfstream-only fleet comprising four GVs and one GIV. However, Vanacore-Netz revealed plans to diversify by adding Bombardier Challenger 604s and 605s, Falcon 2000s, and potentially a Global 6000. Discussions are also underway with owners of six Honda HA-420 jets previously associated with Volato’s Part 135 operations, signaling the company’s interest in entering the light jet market.
“We’re shifting our focus to increase assets under management and bring them into our charter operations,” Vanacore-Netz explained. The strategy includes growing the Part 135 fleet to meet demand while leveraging Part 91 operations for aircraft management services.
Operational and Business Model Strategy
Global Air Charters operates under a model where nearly 95% of its flights are charters, with the remaining 5% representing private use by aircraft owners. Each aircraft averages 800 to 1,000 charter hours annually, enabling high utilization rates and reduced fixed costs.
The company does not intend to own aircraft outright, focusing instead on managing assets for clients who seek revenue generation and tax benefits. This approach aligns with its strategy to expand into the Part 91 market, targeting owners currently operating under private certificates.
Vanacore-Netz highlighted the importance of adding multiple jets of similar types for economies of scale, ensuring operational efficiency and cost-effectiveness. “We’re staying in the turbine market. Propeller-driven airframes are not in our plans,” he said.
Maintenance and Base Expansion
In 2023, GAC acquired CAVU Aircraft Maintenance and Avionics, a Part 145-certified facility near Hazelton Regional Airport. This acquisition enables the company to handle in-house maintenance for its fleet and generate additional revenue streams. Larger jets are serviced at Allentown International Airport, with plans to expand maintenance capabilities to a third location.
Vanacore-Netz emphasized the value of vertical integration, noting, “Controlling our maintenance ensures quality and efficiency.”
Challenges and Market Trends
The CEO acknowledged the private charter market’s struggles in 2023 and 2024, with demand declining at the fastest rate since the 2007-2008 financial crisis. However, he expects stabilization as interest rates decrease and capital costs ease.
Regulatory hurdles remain a challenge, particularly in the UK, where permit requirements for US charters create logistical difficulties. Vanacore-Netz called for reciprocal agreements to address this imbalance and advocated for reforms in pilot training regulations to streamline processes and address industry shortages.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com