PrivatAir - Your Private Airline

If you look at the numbers of business jet companies based in Switzerland, you will notice that there really is a huge market. One of the big players in that market is PrivatAir. The company is offering a wide product range for the demanding business traveller. A report by Michael Meier.

Beside Switzerland, there's probably not a single market with more registered business jets or more air taxi companies in comparison to the number of citizen.

You might wonder why Switzerland is such a big player in this game. I asked the same question to an executive at one of the world's most respected business jet operators in Geneva. He basically told me that "based in Switzerland" still is a very exclusive and precious label which offers a great image for this kind of business. Switzerland has the image of a perfection-driven and politically neutral country. We're basically talking about the same values which are so important for the banking sector too.

The Geneva based airline I was talking to is PrivatAir. An air taxi operator, who is setting the pace in today's air taxi industry - worldwide. You might know about the shuttle service they have invented for Lufthansa out of Duesseldorf and Munich. This business made them more known to the general public, but that's just one chapter in a long story.

A Boeing BBJ in Geneva (Photo: Michael Meier)

PrivatAir started life in 1977 as the corporate flight department of a multinational organization, the Latsis Group. Initially known as PetrolAir, the company was licensed as a commercial airline by 1995.

Today, PrivatAir has the reputation to be the most discreet and exclusive airline. They are flying celebrities, business leaders and other exclusive people around the globe. Of course, they're not speaking about customers, but sometimes, it's quite obvious. As an example, the rock band U2 was using a PrivatAir BBJ on their world tour last year. The jet was even marked with special "Elevation Air" titles referring to a U2 album title. And to give another example, the Rolling Stones could be seen numerous times while deboarding a PrivatAir 757 on their tours around the globe.

The airline has a fleet consisting of three Boeing BBJs (a business jet based on the 737) and one Boeing 757, all in very exclusive configuration. Furthermore, the airline is also operating four Airbus A319s. A very exclusive fleet, especially if you consider that as an example the Boeing Business Jets are equipped with something between 16 to 45 seats! PrivatAir is definitely not your ordinary charter airline. There's no other airline with such an aircraft portfolio. Indeed a very luxurious and spacious way to travel.

Beside their own aircraft, the airline has a fleet of about 50 business planes from the Beech King Air to Gulfstreams and Boeing BBJs, which are managed by PrivatAir for different companies all over the world. Many of them are even available for public charter.

A Boeing BBJ in Geneva (Photo: Michael Meier)

PrivatAir is basically divided into four business units. Private Travel, Corporate Shuttle Service, Aircraft Sales & Management and Ground Handling. Their private travel division has already been mentioned before. But now let's have look to the second division.

Corporate shuttle service is also one of the long established business fields. PrivatAir operates a shuttle for Procter & Gamble in the United States, mainly from Norwich, New York to Cincinnati, Ohio.

But it was clear that there was a lot more potential for corporate shuttles, also in Europe. Since many years, the airline was looking into possibilities to use one of the Boeing Business Jets in a 48-seat configuration as a public shuttle between markets with high demand for business class seats.

Initially, PrivatAir planned to operate an own scheduled service between Geneva and destinations in the United States, mainly at the East Coast. And already then, PrivatAir was in talks with a number of airlines about the possibility of a possible cooperation. But airlines were not really open to such an idea and no deal could be reached.

That was just before September 11 and we all know what happened next. Travel demand between the US and Europe was basically at zero. PrivatAir postponed the project, waiting for better times. When traffic picked up again, they went back to the table and a deal with a large German carrier could be reached.

Since June 2002, PrivatAir operates a non-stop flight between Duesseldorf and Newark for Lufthansa. PrivatAir's Boeing 737-700 Business Jet, equipped with 48 business-class seats in a two-by-two configuration, is being used for this service. PrivatAir also provides maintenance, insurance and the crew. Basically, it's an ACMI leasing contract.

A Boeing BBJ in Geneva (Photo: Michael Meier)

This was the world's first intercontinental business-class-only scheduled airline service, providing passengers real added value in terms of comfort and the convenience of a direct route.

Lufthansa was very happy with the performance of the operations. It didn't take very long until two further transatlantic all-business-class services were introduced in May and June 2003: Düsseldorf-Chicago and Munich-New York, both for Lufthansa.

PrivatAir acquired two new 48 seat Airbus A319 long range aircraft to operate these routes. You might wonder why they were going for the Airbus A319 when they already had the Boeing BBJ in their fleet. The reason is quite simple. Leasing rates. PrivatAir could get much more favourable leasing contracts when taking the A319s instead of the BBJ. But the BBJs are still the backbone of the charter fleet and will stay.

Also in 2003, PrivatAir started a corporate shuttle service for Airbus between the group's principal production sites in Toulouse (France), Hamburg (Germany) and Filton (UK). Two new Airbus A319 aircraft, each with 126 seats, were acquired by PrivatAir for this operation.

As you see, it was a very exciting year for PrivatAir. Especially the introduction of the Lufthansa flights generated a lot of interest from airlines all over the world. Some of them have already been in negotiations with PrivatAir long before but they decided to look and see how the Lufthansa flights were performing.

A Boeing BBJ in Geneva (Photo: Michael Meier)

PrivatAir is recognised as the world's most discreet airline. So it's no wonder they're not talking about those airlines interested in corporate shuttle operations. But one potential customer which is in talks with PrivatAir is known. It's Swiss International Air Lines.

Especially the flight from Zurich to Newark, today flown by an Airbus A330 is a likely candidate for an all-business flight. Leisure passengers are still preferring New York's JFK airport over Newark in New Jersey. Swiss International Air Lines is constantly looking into potentional markets, and if they see more potential on another route, it is likely that the capacity used to Newark will be shifted over to another destination. In that case, Newark would be served by a BBJ or - even more likely - by an Airbus ACJ. Anyway, that's not a done deal yet and an announcement is not expected within the next months. However, discussions are in process, that was confirmed by both sides.

Tha cabin of a Boeing BBJ in Geneva (Photo: Michael Meier)

PrivatAir has certainly opened a new niche in the global airline industry. Shuttle services are a very good opportunity for an airline to develop a market or stay in a market with a low number of economy class travellers, which are needed to fill a widebody aircraft. As a pacemaker, PrivatAir approached some airlines with the idea and the Lufthansa flights are a big success for all parties, including the passengers. I think that this is a product we will often see in the future, on especially on niche routes.

Michael Meier

Did you like this article? Let us know what you think about it! Click here