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 Travel & Outdoors | June 2008 
What Recession? Trips On Private Jets Soar
 Suzette Parmley - Inquirer
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| | Hawker 400XP | | |
Egg Harbor Township, N.J. - Jason Spillerman eased into one of the eight leather seats aboard the Hawker 400XP, a favorite jet among the rich, and looked quite content.
The Philadelphia real estate developer travels quite a bit, and said he "got a taste" of private flying from his wealthy clients.
"Once you fly in one of these, you can't go back," Spillerman said, shuddering at the thought of having to return to pesky long lines, security checks and Ziploc bags to store personal liquid products, the purgatory that is flying commercial.
"It's painful," he said. "I still have those Ziploc bags at home."
Spillerman, 37, was among those attending an exclusive bash this week hosted by the Main Line Group at Citigroup Global Markets Inc. - Citi Family Office, which handles portfolios of the region's wealthiest families. The extravaganza at Atlantic City International Airport showcased the latest toys for the super rich.
This crowd didn't bring stimulus rebate checks and it doesn't sweat gasoline at $4 a gallon. Only individuals with a net worth of at least $5 million could attend the viewing that featured the newest jets, luxury cars, fine wines and jewelry.
No jeans and t-shirts in this bunch. The people who exited the BMWs, Mercedes-Benzes and Lexuses that lined the parking lot that evening were sharply dressed and perfectly coiffed. Gentlemen in suits. Women in designer dresses and high heels.
Spillerman won't soon be barefooting it through check-in. He was contemplating purchasing a Marquis Jet card for as little as $126,900 or as high as $349,900; that would provide him access to 25 hours of flight time on a fleet of aircraft owned by NetJets Inc. For each flight, he has the ability to exchange for a larger or smaller aircraft based on his travel needs.
"You purchase it almost like you purchase a calling card, and it functions like one," said Randy Brandoff, vice president of marketing at Marquis Jet Partners Inc., headquartered in New York.
When a customer flies, the hours are debited from his account.
Citi Family Office said it held the bash "in appreciation of its best clients." The group of about 125 included hedge fund managers, real estate developers and chief executives of major area firms - and their spouses and guests.
The shaky economy wasn't on Rosemary Morgan's mind as she got behind the wheel of a brand new, 2008 Maybach 57 S. The price tag: $395,545.
"This is a beautiful car," said Morgan, of Wyncote, as she soaked in the roominess of the interior. "It's got my interest."
Morgan, 68, who retired from a supervisory role with the Philadelphia prison system, and whose husband is a retired radiologist, was dressed in her everyday finest - flowing summer dress, jewelry and perfect makeup. She said she and her husband just returned from vacationing in the British Virgin Islands, and were heading to Puerto Vallarta next month as members of Exclusive Resorts, a luxury destination club.
Exclusive Resorts, which has one-time membership fees ranging from $139,000 to $500,000 "to make the world your second home," Marquis Jet, Maybach, and Destination Cellars, "the country club of wines," co-sponsored the event with Citi.
Morgan got out of the Maybach and, with sister in tow, sampled some new wines. She said she preferred the four-door Maybach over the "other car" next to it - a two-door, 2008 Mercedes-Benz SLR McLaren Roadster that goes for slightly more at $513,230.
And if she decides to purchase the Maybach, the Marquis Jet card would be out.
"That will have to wait," she said. "I really like that car."
Such are the tough decisions facing the ultra rich in a softened economy.
"They are certainly affected by the economy," said Erin Armendinger, managing director of the Jay H. Baker Retailing Initiative at the Wharton School at the University of Pennsylvania. "They are not affected in the same way as you and I."
Joel L. Naroff, chief economist at Commerce Bank, said the super wealthy were being more selective.
"They are probably being more cautious and looking for the right hedge fund to put their millions," he said half-jokingly. "I don't think the private jets have coach class, so they don't have to worry about that."
"They tend not to trade down unless there is a significant hit to their wealth," Naroff said. "Basically, the super rich have a super amount of money."
Brandoff at Marquis Jet said that while sales numbers continue to meet expectations this year, his sales staff was seeing the impact of the economy.
"The economy has probably lessened the degree of impulse buying," he said. "The majority of our sales are coming from educated, informed buyers who are taking the time to make informed decisions."
He said Marquis Jet currently has about 4,000 card owners, but that "the potential market was hundreds of thousands of individuals and families who meet our demographic."
That demo? A couple million or more per year in income and/or a liquid net worth of $8 million to $10 million and above.
But the price is almost a bargain, Brandoff said.
"By not having the capital outlay requirement of whole aircraft or even fractional aircraft ownership," he said, "we've expanded the market for those who can afford access to the highest quality in private aviation."
And such bargains in a tough economy are hard to come by.
Contact staff writer Suzette Parmley at sparmley(at)phillynews.com. |
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