Flight of Fancy

Oil and Gas Investor
June 2006

Oil and Gas Investor

. . . When the national economy fell into a slump after more high-roller days in the late 1990s, fractional ownership didn't look as good to some people. Along with the 25-hour fractional card companies, filling the gap were charter broker companies such as Blue Star Jets.

"I looked at the fractional model and it didn't work for us. I didn't want to be in a five-year contract. I didn’t' know what was happening two years out, much less five," says Ricky Sitomer, chief executive of Blue Star Jets (based in New York City), the largest broker of private jets in the world. "Yes you can write depreciation off, but that's only a benefit to someone making so much money that they need that kind of write-off. I decided to explore the market and come up with something that would meet our needs".

The result was Blue Star, with its SkyCard, reputation for pampering its clients and new rewards program linked with luxury partners including Neiman Marcus. Membership levels range from $50,000 to $1 million and the company offers jets, helicopters and propeller planes. They have a four-hour turnaround, which can be shortened to two hours in a jam. Recently they became the exclusive jet provider for GoTrump.com

"Time, safety and convenience are a lifestyle," says Sitomer. "Our business has doubled every year since 2001. We basically have a complete wardrobe of planes. Sometime you’re wearing a fancy suit and you want a big, gorgeous plane to impress. Sometimes it's just you and your family and you feel like wearing jeans in something smaller." . . .

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