Good Times For Jet Management Operator

At NBAA 2006, TAG Aviation USA reports its client flight activity and fleet growth continued strong through the third quarter of 2006, with record levels of new client activity. Twenty-five fully managed aircraft have joined the TAG fleet year-to-date, versus 16 during the same period in 2005. The TAG Aviation USA fleet totals more than 100 fully managed aircraft at more than 60 locations nationwide.

Notably, TAG Aviation client flew 15 percent more hours in the third quarter of 2005 than during the same period in 2004.

The source of new clients has remained fairly level with previous years. According to J.W.P. (Jake) Cartwright, President And CEO, virtually all of them are first-time whole aircraft buyers.

"About one-third of TAG's new management clients are fractional share owners whose flying has outgrown share economics," said Cartwright, "and one-third come from other management companies. The reason is our focus on safety, security, service, and savings -- in that order."

About half of TAG management clients seek third party charter revenue, which TAG arranges via its affiliation with AMI Jet Charter, a San Francisco-based Part 135 Air Taxi operator. The success of this relationship is borne out by the fact that almost twenty percent of the TAG-managed aircraft in charter service have seen more than $1 million in charter revenue through the third quarter of 2006, in addition to flying for their owners.

"Aircraft management is TAG Aviation USA's core business," continued Cartwright. "That is why we exist -- not to support a fractional fleet with charter, or to operate maintenance centers and FBOs. Our owners appreciate that focus and commitment to their safety and personalized service, with centralized oversight and large fleet economies of scale, as well as our ability to generate charter revenue when requested."

TAG reports 20 percent of the TAG-managed aircraft in charter service will see more than $1 million in charter revenue in 2006, in addition to flying their owners.

TAG has seen a shift in its charter revenue sources, with less wholesale and more end user flying in 2006. Fractional operators are less willing to subcontract their client flight to third party charter companies, using their own managed fleets whenever possible.

"That enabled us to serve more retail clients this year, a more profitable segment," stated Paul Class, TAG's Vice President Charter Sales and Flight Coordination. "We opened a new business development office in Florida this year, which has enabled us to better serve the Southeastern US retail market."

Before 2006 is over, TAG will see the delivery of the first Eclipse VLJ for TAG Aviation USA's shared ownership program, with a total of 10 delivered by the first quarter of 2008. Matt Sheble, TAG's VLJ Program Manager, anticipates this first aircraft will serve as a demonstrator as well as proff of concept for the program, which focuses on owner days of exclusive use, rather than annual flight hours.

"2006 has been a hyear of profitable growth with no compromise in client safety, security of service," said Cartwright. "We will remain on the leading edge of corporate aviation service by anticipating and meeting our clients' needs."

FMI: www.tagaviation.com