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June 8, 2010 6:10 AM

Delta + AirElite Charter Operation = Corporate Bigwig Airlines

By
Brett Snyder
(MoneyWatch)  There is no shortage of charter aircraft operators in the U.S., so for an operator to differentiate itself from the rest of the pack, it has to play to its strengths. That's what the charter outfit Delta AirElite, a unit of Delta Air Lines (DAL), is doing by offering wealthy customers a one-stop-shop for mixed private-jet and commercial flight travel.

Corporate charters aren't for the poor, that's for sure. Delta's Air Elite Card, for instance, requires a mere $100,000 to get started. That money sits in an account and it's deducted based on aircraft usage. Hourly rates for an airplane can range from $4,000 all the way up to $14,250. It's not cheap.

Then again, the people using this service don't care if it's cheap. They care if it's convenient. If price is your only consideration, then you're not likely to ever pick a charter over a commercial operation. But when convenience comes into play, well, that changes things.

For some people, the key is to find the best value. That means taking price and convenience into account and going with the best option on a case-by-case basis. For example, let's say you run a company based in Grand Island, Nebraska. You need to fly to an important meeting in Cincinnati. Then you have to fly to Washington DC to testify in Congress. After, you'll come back home.

Chances are, it'll take you a long time to get to and from Grand Island on a commercial flight. There are twice weekly flights to both Phoenix and Vegas as well as daily flights to Denver, so you don't exactly have a wealth of options. Your next best option is to drive for hours to a bigger airport. None of those are very appealing for someone with a high value of time. So, you look a charter operator to make the best of it.

But what about that flight from Cincinnati to DC? Sure, you could still take a charter, but it's not going to save you much time over a commercial flight. You might as well fly commercial.

You could always cobble that together with different operators, but now you can do that in one transaction with Delta AirElite. You'll also get a 20 percent discount on the commercial flight, if you buy a full fare ticket. Cardholders are also automatically given Delta's highest frequent flier elite status level and membership to the airport lounge, so it can be quite a good experience.

For Delta, this is a nice advantage. It just gives more options to people, and those who are looking for convenience care about having more options above all else. This is a good move by Delta. It allows them to really beef up their offering and give something that others can't.

Photo via Flickr user Global Jet

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