The Isaac generation

BOITSHEPO BOLELE | Thursday August 26, 2010 00:00

I was pleasantly surprised this week when I read in the local newspapers that some companies have invested in private aircrafts.  The question is what took them so long and why is it just a few companies, why not me and you?  It's a pity that just a few companies are alive to business aviation as a business case, a winning one for that matter.

What then is business aviation?  The International Aviation Association defines Business Aviation is the use of 'general aviation' for business purposes, all flights not conducted by the military or the scheduled airlines (e.g. Air Botswana).  As such business aviation is a part of general aviation that focuses on the use of airplanes and helicopters. Participation in this industry continues to attract a diverse composite of entrepreneurs and organisations: nonprofit and companies of all sizes, in some of the neighbouring countries, it has become a link between the remote farming settlements, commercial farms of course, and the population centers that host the markets and supply chains.

Business aviation uses include: -* Transportation of employees, customers,cargo, parts and mail;* Medical and emergency transportation;*Mapping & surveying and aerial photography;*Agricultural applications, game tracking and control;*Security and law enforcement* News gathering* Airborne research & development*Weather monitoring and reporting and   above all, pure branding!

This is an efficient, flexible and cost effective access to destinations across the country such as Ghanzi, Tshabong and yes fly back as and when you want from Kasane, without being held hostage by the flight schedules and yes it allows your clients or their employees to make trips involving several locations.  The industry has become so big and so popular that as early as 1986, 'Fractional Aircraft Ownership', was formalised as a programme that offers owners increased flexibility in the ownership and operation of aircrafts: a shared or joint aircraft ownership programme.

Fractional ownership simply means the division of any asset into portions or shares.  If the 'asset' is a property, the title or deed can be legally divided into shares.

The term fractional ownership originally became popular for business jets. It is reported that Richard Santulli of Net Jets, who pioneered the concept of allowing businesses to purchase shares in a jet to reduce costs.  The fractional-ownership concept has since been extended to smaller aircraft, which are beyond the financial means of many private pilots. The same concepts apply, except that the management company may not provide flight crews nor reposition the aircraft.  Fractional ownership is a popular investment in the private air travel arena.  Essentially, you purchase a partial interest in an aircraft that is operated by an aviation company as part of its fleet. As an owner, you have the right to use any comparable aircraft in the fleet, on demand, for a predetermined number of hours each year.

Many pilots get together to buy light aircraft in a privately bought and managed fractional ownership, this is often known as group flying.

Fractional ownership has played a significant role in revitalising the general aviation manufacturing industry since the late 1990s, and most manufacturers actively support fractional ownership programs.

On the local scene, there are 3 dominant local routes being Kasane, Maun and Francistown; and for some of these flights, you may find yourself stuck in a hotel for 2days waiting for the Sunday scheduled flight to Gaborone; at great cost to the company and to yourself as an individual. This is also an opportunity to touch base with Gantsi in an hour or so, saving the company the petrol and vehicle maintenance costs that come with a 10hr journey, and yes the risks that come with driving the Kang/ Gantsi Road at night.  There is an opportunity for the fractional aircraft operation to close this gap.  Interestingly, there are a number of charter flights here in Botswana, though not operating as Fractional titles, most of them have extended their services to the commercial market; through charter flights, lease to humanitarian and technical services, mail and courier services, cargo operations etc. All it takes is a team, be it a consortium to fly your very own airbus, fractionally of course.  To discuss the matter further, contact the Asset Finance division of your local bank or email boi.bolele@gmail.com.