U.S. patent application number 10/056147 was filed with the patent office on 2003-07-24 for enhanced air travel security method and apparatus.
Invention is credited to Daum, Steven B..
Application Number | 20030140025 10/056147 |
Document ID | / |
Family ID | 22002472 |
Filed Date | 2003-07-24 |
United States Patent
Application |
20030140025 |
Kind Code |
A1 |
Daum, Steven B. |
July 24, 2003 |
Enhanced air travel security method and apparatus
Abstract
A method of screening passengers for a passenger aircraft flight
includes a step of obtaining voluntary consent from a plurality of
passengers to perform a background check. The method further
includes formulating a data record associated with each of the
plurality of passengers. The passenger aircraft flight is scheduled
as one of a plurality of regular scheduled flights. Prior to the
passenger aircraft flight, it is determined whether a person is
associated with a formulated data record. The method includes
denying participation by the person in the passenger aircraft
flight if the person is not associated with a formulated data
record.
Inventors: |
Daum, Steven B.; (New
Fairfield, CT) |
Correspondence
Address: |
Harold C. Moore
Maginot, Moore & Bowman
Bank One Center/Tower
111 Monument Circle, Suite 3000
Indianapolis
IN
46204-5115
US
|
Family ID: |
22002472 |
Appl. No.: |
10/056147 |
Filed: |
January 24, 2002 |
Current U.S.
Class: |
706/48 |
Current CPC
Class: |
G07C 9/32 20200101 |
Class at
Publication: |
706/48 |
International
Class: |
G06N 005/02 |
Claims
We claim:
1. A method of screening passengers for a passenger aircraft
flight, the method comprising: a) obtaining voluntary consent from
a first passenger to perform a background check on the first
passenger; b) formulating a data record associated with the first
passenger if the passenger passes the background check; c)
obtaining biologically oriented identification data associated with
the first passenger; d) storing the biologically oriented
identification data in the data record; e) prior to the passenger
aircraft flight, obtaining biological oriented measurement data
from a person purporting to be the first passenger; f) comparing
the biologically oriented measurement data to the biologically
oriented identification data; g) selectively permitting the person
to participate in the passenger aircraft flight based on the
comparison.
2. The method of claim 1 wherein step b) further comprises
formulating a data record associated with the first passenger if
and only if the passenger passes the background check.
3. The method of claim 1 wherein step b) further comprises storing
positive screening results data in the data record if and only if
the passenger passes the background check.
4. The method of claim 1 wherein step e) further comprises
associating the person with a first fractional aircraft owner.
5. The method of claim 1 wherein step e) further comprises scanning
a portion of the person to gather the biological oriented
measurement data;
6. The method of claim 1 wherein the passenger aircraft flight is
one of a set of regular repeating scheduled flights.
7. An apparatus comprising: a) a memory; b) a communication device;
c) a processing circuit operable to formulate and store in the
memory a data record associated with a first passenger, the data
record including an indication that the first passenger has passed
a background check, the data record further including biologically
oriented identification data associated with the first passenger,
receive biological oriented measurement data associated with a
person, compare the biologically oriented measurement data to the
biologically oriented identification data in the data record, and
provide an indication signal to the communication device, the
communication signal operable to cause the communication device to
provide a human-perceivable indicia representative of the result of
the comparison.
8. The apparatus of claim 7 wherein the processing circuit includes
more than one processors.
9. The apparatus of claim 7 wherein the processing circuit includes
more than one processors connected via a network.
10. The apparatus of claim 9 wherein the more that one processors
are connected via the Internet.
11. The apparatus of claim 7 wherein the communication device
includes a visible display.
12. The apparatus of claim 7 wherein the communication device
includes an audible sound generator.
13. The apparatus of claim 7 wherein the communication device
includes a visible indicator.
14. The apparatus of claim 7 wherein the processing circuit is
further operable to associate the person with a first fractional
aircraft owner.
15. A method of screening passengers for a passenger aircraft
flight, the method comprising: a) obtaining voluntary consent from
a plurality of passengers to perform a background check; b)
formulating a data record associated with each of the plurality of
passengers; c) scheduling the passenger aircraft flight as one of a
plurality of regular scheduled flights d) prior to the passenger
aircraft flight, determining whether a person is associated with a
formulated data record; and e) denying participation by the person
in the passenger aircraft flight if the person is not associated
with a formulated data record.
16. The method of claim 15 wherein step d) includes: gathering
biologically oriented measurement data from the person; comparing
the biologically oriented measurement data to biologically oriented
identification data previously stored within the data record.
17. An apparatus comprising: a) a memory; b) a first processing
circuit operable to formulate and store in the memory a data record
associated with each of a plurality of passengers, each data record
including an indication that the associated passenger has passed a
background check, c) a second processing circuit operable to
receive a signal from an input circuit indicative of an
identification of a person, the person attempting to participate in
an aircraft flight; determining whether the signal correlates to
one of the plurality the data records; provide an indication signal
to a communication device, the indication signal operable to cause
the communication device to provide a human-perceivable indicia
representative of the result of the determination.
18. The apparatus of claim 17 wherein the first processing circuit
and the second processing circuit constitute a single processing
device.
19. The apparatus of claim 17 wherein the first processing circuit
and the second processing circuit are connected by a network.
20. The apparatus of claim 19 wherein the first processing circuit
and the second processing circuit are connected by a Internet.
21. The apparatus of claim 17 wherein the aircraft is
fractionally-owned by a plurality of fractional owners.
22. The apparatus of claim 17 wherein the second processing circuit
is further operable to associate at least one of the plurality of
data records with a first fractional aircraft owner.
23. The apparatus of claim 17 wherein said indication is the
existence of the data record.
Description
FIELD OF THE INVENTION
[0001] The present invention relates generally to the purchase and
use of aircraft by a plurality of parties.
BACKGROUND OF THE INVENTION
[0002] Options available for air travel by business travelers are
limited to commercial airlines, aircraft ownership, and chartering.
Ideally, frequent business travelers seek comfort as well as an
environment in which in-flight productivity is enhanced. Coach
class traveling on commercial airlines provides a largely
unfavorable environment. However, in exchange for the lack of
comfort and amenities, the cost of the flight per passenger is
relatively low. In other words, relatively little room is allocated
per passenger in order to reduce the cost of the flight per
passenger.
[0003] Business travelers, however, are often willing to pay an
increased price to obtain more space and amenities. The increased
space allocated per traveler allows the traveler to emerge from air
travel relatively refreshed and potentially more productive on the
ground. If some of the increased space is dedicated to productivity
enhancing furnishings, then the increased space further increases
the potential for air travel time to be useful time.
[0004] Travel by first class or business class addresses some of
the productivity and comfort concerns with commercial air travel,
but only in a marginal way. While the seats in traditional first
and/or business class service are slightly larger, and the service
is more personal, the effective result is little more than enhanced
coach class travel.
[0005] An additional perceived drawback to commercial airline
travel is the possible safety risks associated with providing
flight service for the general public on relatively crowded
aircraft. While safety regulations and procedures for commercial
flights are laudable, such regulations and procedures have limited
ability to screen passengers to enhance safety.
[0006] One mechanism by which business (and other) travelers obtain
enhanced comfort, safety and productivity in flight is through full
or fractional ownership of luxury-appointed aircraft. Full
ownership of an aircraft provides the greatest flexibility and
safety to the owner, but at a great cost. In general, cost may be
reduced by purchasing smaller aircraft, however, at the sacrifice
of comfort and productivity concerns. Conversely, while a specially
designed jumbo jet may be configured for optimal comfort and
productivity, sole ownership of such a jumbo jet is typically not
cost justified except in rare circumstances.
[0007] Fractional aircraft ownership helps spread the costs of
aircraft ownership over several parties. In the existing practice
of fractional aircraft ownership, multiple buyers (up to 16) each
buy a fraction of an aircraft, collectively purchasing the
aircraft. Each buyer then signs an agreement assigning the
management of that aircraft to a management company who is also the
originator of the fractional jet purchases either directly or
indirectly through an affiliate. With conventional fractional
ownership and operations, each owner, alone, or with their own
employees and guests, may use the plane for up to a specific
allotment of hours per year. The amount of annual hours of use are
tied to the size of the fraction purchased. Fractional aircraft
ownership theoretically provides enhanced safety because a limited
group of people have access to the aircraft. However, no
significant additional passenger screening occurs.
[0008] In accordance with applicable governmental ("FAA")
regulations, multiple owners in existing fractional ownership
programs cannot use and pay for the use of the aircraft on the same
flight. As a result, the cost of use of the aircraft is the same to
each owner, regardless of how many passengers the owner flies on
the aircraft on any one flight. The consequence of this limitation
is that the business model for fractional ownership is somewhat
inefficient.
[0009] There is a need, therefore, for an arrangement in which
travelers may travel in a safe, productive, and comfortable manner
while obtaining an efficient cost/benefit ratio.
SUMMARY OF THE INVENTION
[0010] The present invention addresses the above needs, as well as
others, by providing methods and apparatus for shared fractional
ownership of aircraft that use regularly scheduled flights and for
which multiple owners may share the costs of individual flights. In
particular, by using cost-shared scheduled flights of aircraft
owned by fractional owners, each fractional owner of aircraft
achieves greater utility for each dollar invested in the
aircraft.
[0011] In accordance with a safety-oriented aspect of the present
invention, the present invention provides for pre-screening
approved passengers and maintaining a data file for screened
passengers. Upon attempted boarding of an aircraft, a passenger is
only allowed to board if the passenger has a data file that
indicates a successful pre-screening. Thus, the aircraft is
occupied by only pre-screened passengers.
[0012] One embodiment of the present invention is a method of
screening passengers for a passenger aircraft flight that includes
a step of obtaining voluntary consent from a plurality of
passengers to perform a background check. The method further
includes formulating a data record associated with each of the
plurality of passengers. The passenger aircraft flight is scheduled
as one of a plurality of regular scheduled flights. Prior to the
passenger aircraft flight, it is determined whether a person is
associated with a formulated data record. The method includes
denying participation by the person in the passenger aircraft
flight if the person is not associated with a formulated data
record.
[0013] Another embodiment of the present invention is an apparatus
that includes a memory, a communication device, and a processing
circuit. The processing circuit is operable to formulate and store
in the memory a data record associated with a first passenger, the
data record including an indication that the first passenger has
passed a background check, the data record further including
biologically oriented identification data associated with the first
passenger. The processing circuit is further operable to receive
biological oriented measurement data associated with a person and
compare the biologically oriented measurement data to the
biologically oriented identification data in the data record. The
processing circuit is also operable to provide an indication signal
to the communication device, the communication signal operable to
cause the communication device to provide a human-perceivable
indicia representative of the result of the comparison.
[0014] Thus, the above-described embodiment employs
biologically-oriented identification verification of passengers,
preferably pre-screened passengers. The reliance on
biologically-oriented information enhances safety because the
potential for the successful use of phony or bogus identification
cards is greatly reduced.
[0015] It will be appreciated that the above-described features and
advantages, as well as others, will become more readily apparent to
those of ordinary skill in the art by reference to the following
detailed description and accompanying drawings.
BRIEF DESCRIPTION OF THE DRAWINGS
[0016] FIG. 1 shows a schematic diagram of relationships between
various entities involved in establishing and operating a shared
fractional private airline ("SFPA") in accordance with embodiments
of the present invention;
[0017] FIG. 2 shows a flow diagram of an exemplary set of
operations for coordinating a fractional purchase of an aircraft in
accordance with embodiment of the present invention;
[0018] FIG. 3 shows a flow diagram of the operations involved in
transitioning the aircraft ownership by fractional owners into the
implementation of a shared fractional private airline;
[0019] FIG. 4 shows a flow diagram of the operations involved in
executing an exemplary flight transaction on a shared fractional
private airline; and
[0020] FIG. 5 shows an exemplary arrangement of a system capable of
carrying out many of the computer operations associated with the
operations of FIGS. 1, 3 and 4.
DETAILED DESCRIPTION
[0021] FIG. 1 shows a schematic diagram of relationships between
various entities involved in establishing a shared fractional
private airline ("SFPA") in accordance with embodiments of the
present invention. In general, the shared fractional private
airline is an associated group of entities that own and operate a
number of fractionally-owned aircraft. The schematic diagram of
FIG. 1 shows an exemplary arrangement in which first and second
fractional owners groups 12 and 14 purchase aircraft and
participate in the SFPA. It will be appreciated that even within
the exemplary embodiment shown in FIG. 1, the SFPA will typically
include several additional fractional owners groups similar to the
fractional owners groups 12 and 14.
[0022] The first fractional owner group 12 is comprised of a
plurality of fractional aircraft owners 15a through 15f. Each
fractional aircraft owner 15x (where x is any of a through f)
purchases and owns a fraction of a first aircraft (not shown). In
accordance with the exemplary embodiment described herein,
fractional ownership may be divided into increments of as little as
{fraction (1/160)}. Thus, each fractional owner 15x may purchase as
little as {fraction (1/160)} of an aircraft, or any fraction
greater than {fraction (1/160)}. Preferably the sum of the
fractions owned by the fractional owners 15a through 15f equals one
or nearly one. Thus, for example, the fraction ownership of the
first aircraft may be as set forth below in Table 1.
1 TABLE 1 Owner Fraction Owned 15a {fraction (1/16)} 15b {fraction
(1/32)} 15c {fraction (1/64)} 15d {fraction (1/64)} 15e 3/8 15f
1/2
[0023] As will be discussed in further detail below, the fraction
owned by each fractional owner 15x preferably defines the use
allocated to the fractional owner, as well as the amount of
expenses incurred for the maintenance and operation of the first
aircraft. The use allocation identifies the quantity of use
allotted to the fractional owner 15x. In the embodiment described
herein, the "use" allotted to the fractional owner 15x permits the
fractional owner to "use" any aircraft in the SFPA, and not just
the first aircraft. Thus, the intent is to obtain a relatively
large number of fractional owners groups so that the SFPA can offer
service on several air routes to any fractional owner.
[0024] In accordance with one aspect of the present invention,
usage is measured as a function of the number of passengers that
are associated with the fractional owner 15x that participate in
each flight of an aircraft. Thus, for example, a fractional owner
15x that flies two people from New York to Chicago uses twice as
much of her use allocation than she would have used to fly one
person from New York to Chicago.
[0025] As a consequence of incorporating the number of passengers
per flight in the use allocation, the fractional owner 15x may
effectively "split" the cost of the flight, albeit indirectly, with
other fractional owners, based on how much of the plane's capacity
the fractional owner 15x uses. In other words, if several owners
(or their guests or employees) participate in a flight, the use
allocation of each fractional owner will be consumed accordingly.
As a result, multiple fractional owners are capable of "paying" for
a single flight through the consumption of their use
allocation.
[0026] In the exemplary embodiment described herein, the use
allocation is defined as the number of passenger-hours of flight
time. However, alternative measures such as passenger flight
mileage, a point system based on route, or other measures that
approximate usage may be employed.
[0027] It will be appreciated that the fractional owner 15x may be
an entity that is a living person, a corporation or another type of
organization. It will further be appreciated that the SFPA may
comprise a single aircraft and a single fractional owners group.
However, as discussed above, the benefits of the present invention
are greatly enhanced through the inclusion of multiple fractional
owners groups and multiple aircraft.
[0028] The second fractional owners group 14 has a similar
architecture as the first fractional owners group 12. It will be
appreciated that the second fractional owners group 14 may comprise
a different number of fractional owners, e.g. 15g through 15k, so
long as the owned fractions add up to one or nearly one.
[0029] A sales and management entity 16 is responsible for
arranging the sale of an aircraft from a source of aircraft 18 to
the fractional owners groups 12 and 14. FIG. 2, discussed further
below, illustrates in detail the operations of the sales and
management entity 16 to arrange for the sale. In general, the sales
and management entity 16 provides marketing and sales services
necessary to "subscribe" each aircraft to full or near full
fractional ownership.
[0030] Continuing with the description of FIG. 1, the source of
aircraft 18 may be an aircraft manufacturer, or may alternatively
be a seller of used aircraft, including a commercial airline. In
the preferred embodiment described herein, the fractional owners
groups 12 and 14 purchase relatively large jumbo jets, such as the
BBJ-2 available from Boeing Corporation. A jumbo jet provides
sufficient room for extended business and comfort features
envisioned as the norm for the SFPA aircraft.
[0031] After the first buyers' group 12 purchases the first
aircraft, the maintenance and operation of the first aircraft is
provided by the carrier entity 20. To this end, the first buyers'
group 12 may transfer possession of the first aircraft to the
carrier entity 20, via a lease document 26, discussed below, or
through some other mechanism. The carrier entity 20 is an entity
having core capabilities of an ordinary commercial or charter
airline. The carrier entity 20 hires and maintains flight crews,
and maintains aircraft. The carrier entity 20 preferably acts as a
FAA part 121 carrier, which operates passenger flights on regular,
repeating schedules. By regular, repeating schedules, it is meant
that passenger flights are scheduled regularly without regard to
prior reservation by passengers.
[0032] While the carrier entity 20 flies and maintains the aircraft
of the SFPA, the charter entity 22 performs the scheduling, booking
and billing operations that enable usage of the aircraft by the
fractional owners (e.g. fractional owners 15a through 15k). The
charter entity 22 thus schedules the use of each aircraft owned by
the fractional owners groups 12 and 14. The charter entity 22
performs the function of accepting reservations from the individual
fractional owners 15a through 15k (i.e. from the fractional owners'
designated agents). The charter entity 22 further performs the
function of collecting management fee and occupancy fee payments
from the fractional owners 15a through 15k, as will be discussed
further below. The charter entity 22 is also responsible for
providing compensation to the carrier entity 20 for the performance
of the aircraft operation and maintenance services.
[0033] Finally, the charter entity 22 tracks flight occupancy
attributable to each fractional owner 15x and deducts the
fractional owners' use allocation accordingly. Thus, for example,
if a fractional owner 15x is allocated fifty passenger-hours per
year and flies two people on a six hour flight, then the charter
entity 22 would reduce the remaining use allocation of the
fractional owner 15x by twelve, leaving thirty-eight
passenger-hours.
[0034] In summary, each of the fractional owners groups 12 and 14
purchases an aircraft as a unit. Each fractional owner 15x is then
entitled to use either of the fractionally owned aircraft. In the
exemplary embodiment described herein, it is envisioned that each
fractionally owned aircraft will be assigned to one or a few
regularly scheduled flights on particular routes (e.g. between one
or a few city-pairs). As a result, the number of scheduled flights
(and hence the number of air routes serviced) depends upon the
number of fractionally owned aircraft in the SFPA.
[0035] The business mechanism by which the various rights and
responsibilities are allocated to enable operation of the SFPA
comprises a series of agreements. The first agreement is a lease
agreement 26 from the fractional owners group 12 to the carrier
unit 20. The lease agreement 26 is conditioned upon execution of a
first charter 28 between the carrier entity 20 and the charter
entity 22, and upon execution of a second charter 30 between the
charter entity 22 and the fractional owners group 12.
[0036] The lease agreement 26 grants a leasehold in the first
fractionally owned aircraft to the carrier entity 20. As a result,
the carrier entity 20 may maintain and operate the aircraft on
scheduled flights.
[0037] The first charter 28 transfers scheduling and booking
control of the first aircraft to the charter entity 22. Thus, in
accordance with the first charter 28, the carrier entity 20 agrees
to operate the aircraft on scheduled flights as determined by the
charter entity 22, and to admit passengers to the aircraft in
accordance with instructions of the charter entity 22. In exchange,
the charter entity 22 agrees to pay carrier fees for the services
of the carrier entity 20. The carrier fees include operating costs,
fixed costs, and a management fee.
[0038] In general, the carrier fees may be broken down on a per
aircraft basis:
C.sub.--Fee=Op.sub.--cost+Fixed.sub.--cost+Mgmt.sub.--fee,
[0039] where C_Fee is the per aircraft carrier fee charged to the
charter entity 22, Op_cost is the operating cost of a single
aircraft, Fixed_cost is the fixed cost of a single aircraft and
Mgmt_fee is the overhead charge of the carrier entity 20.
[0040] Operating costs then include the following, on a per-hour of
flight time basis:
Op.sub.--cost/hr=fuel/hr+maintenance/hr+landing/hr+trvl.sub.--exp/hr+posit-
ion/hr,
[0041] where fuel/hr is the cost of fuel per flight hour,
maintenance/hr is the cost of maintaining the aircraft per flight
hour, landing/hr is the landing cost per flight hour, and
trvl_exp/hr is equal to the flight crew travel expenses per flight
hour, and position/hr is the marginal fuel and other operating
costs for nonflight time taken to position the aircraft for use,
wherein such costs are estimated as a cost per flight hour. There
may in some cases be additional costs, such as navigational fees
for international flights, as well as others. Any such additional
operating costs may be added to the above equation on a per-hour
basis.
[0042] Thus, for example, if a particular aircraft is determined by
the charter entity 22 to fly between New York and Chicago two
hundred times per year, and it is estimated that a single round
trip involves four hours of flight time, then the Op_cost/hr may be
readily determined. In particular, the fuel/hr would be the amount
of fuel consumed in a single round trip between New York and
Chicago, divided by four hours. Similarly, the landing fees
involved in a single round trip may be divided by four to obtain
the value of landing/hr. The maintenance fees for an aircraft, both
for engine and air frame, are typically incurred as a function of
flight hours, and thus maintenance/hr may readily be determined.
The value of trvl_exp per hour will depend on whether the crew is
required to stay over away from "home" during the normal flight
schedule. If so, then such expenses incurred for the entire round
trip would be divided by the four hour round trip to obtain
trvl_exp/hr.
[0043] Finally, the positioning fees consist of the fuel and other
costs associated with non-passenger movement of the aircraft. In
particular, the aircraft may be housed in a location away from the
airport in which it bases its flights. For example, a New York to
Chicago flight aircraft may actually be housed in Delaware for cost
reasons. The positioning flight from Delaware to New York incurs
operating costs. Such costs have been estimated to accrue at
approximately 35% of the rate of normal flight operating costs, per
hour. Moreover, it is estimated that approximately one hour of
positioning occurs for each flight. Accordingly, for the New York
to Chicago trip, the position/hr costs may be estimated as:
position/hr=(0.35)(1/4)(Fuel/hr+maintenance/hr+landing/hr+trvl.sub.--exp/h-
r)
[0044] Once the Op_cost/hr is determined, the total Op_cost may be
determined by multiplying Op_cost/hr by the number of hours of
flight time. Thus, for example, if the aircraft makes two hundred
roundtrips between New York and Chicago (four hours each), the
total annual operating cost is Op_cost/hr(200)(4).
[0045] Fixed costs (Fixed_cost) may be determined as a function of
the following: Insurance costs (hull, extended liability, and legal
liability), crew salary and benefits, recurring training fees,
recurring updates to aircraft mechanicals, electricals and
software, uninsured damage, navigation chart service, recurring
interior/exterior refurbishment, weather service, and computerized
maintenance programs. Again, additional fixed fees may be incurred.
Such fixed costs are incurred regardless of flight time, and thus
may simply be determined on an annual basis.
[0046] Mgmt_fee constitutes the management/profit margin costs of
the carrier 20. Typically, such charge may consist of a flat
monthly fee per aircraft.
[0047] Accordingly, the value C_fee paid by the charter entity 22
to the carrier entity 20 may be determined as described above. In
particular, the annual Op_cost value may be determined by
calculating the hourly operating costs and multiplying the cost by
the annual flight hours. Mgmt_fee and Fixed_cost may readily be
annualized. The resulting annualized C_fee may then be paid on a
monthly basis.
[0048] The second charter 30 defines the relationship between the
charter entity 22 and each fractional owner 15x. The second charter
30 obligates the charter entity 22 to permit usage of one or more
fractionally owned aircraft of the SFPA by each fractional owner
15x in exchange for a periodically payable management fee. In the
exemplary embodiment described herein, the second charter 30 also
defines for each fractional owner 15x a passenger-hour allocation,
typically defined as an annual allocation. In a preferred
embodiment, the passenger-hour allocation is based at least in part
on the size of the fraction owned by the fractional owner 15x.
Thus, in the example shown in Table 1, the fractional owner 15f
would have a much larger annual passenger-hour allocation than the
fractional owner 15d. Each passenger-hour allocated entitles the
fractional owner 15x participation in a flight by one passenger for
one hour. Thus, in the New York to Chicago example described above,
flying two persons round trip would require the use of eight
passenger-hours.
[0049] The charter entity 22 preferably determines the
passenger-hour allocations in the following manner. First, the
charter entity 22 defines a total passenger-hour allocation for the
entire aircraft on an annual basis. The total passenger-hour
allocation per aircraft is defined as the total flight-hour
allocation per aircraft multiplied by the per-flight passenger
allocation per aircraft. The charter entity 22 then distributes the
total passenger-hour allocation in accordance with the fraction
owned by each fractional owner 15x. Thus, even though the
fractional owner 15x is not necessarily required to use its
passenger hour allocation on its own fractionally owned aircraft,
the use allocated to the fractional owner 15x is nevertheless based
on its fraction owned.
[0050] By way of example, if the annual flight time allocation for
the first aircraft is eight hundred flight hours, and the charter
entity 22 defines a per-flight allocation of twenty passengers,
then the total annual passenger hour allocation for the first
aircraft is 16,000 hours, with fractional owner 15f receiving an
allocation of 8,000 passenger hours and fractional owner 15d
receiving 250 passenger hours. As discussed above, however, the
fractional owners 15d and 15f need not use all of their allocation
on the first aircraft.
[0051] In accordance with one aspect of the present invention, the
charter entity 22 allocates a relatively small number of passengers
for each flight, even if the aircraft is a jumbo jet. For example,
the charter entity 22 preferably allocates twenty passengers on a
large jumbo jet such as the Boeing BBJ-2. Such a small passenger
allocation with respect to the size of the aircraft helps ensure
complete comfort and productivity of the passengers. In particular,
one feature of the invention is that it provides a level of comfort
and productivity aboard flight unrivaled by current commercial
flights, even in first class. By allocating only twenty passengers
per flight, the aircraft may be outfitted with comfortable seating
furniture, as opposed to mere rows of seats, and may further
include conference rooms, computer work stations and other
productivity-oriented features.
[0052] It is further contemplated that the per-flight passenger
allocation should be significantly less than the maximum occupancy
that is acceptable. In other words, a twenty passenger allocation
takes into account that several more passengers must be able to be
productive and comfortable on any particular flight. The additional
capacity over and above the allocated number of passengers allows
for uneven flight usage. For example, in real world conditions, one
flight may have twenty passengers while another has twelve. Thus,
by allocating twenty passengers per flight, the charter entity 22
factors in a larger acceptable maximum number of passengers, for
example, thirty-two.
[0053] Thus, to determine the per-flight passenger allocation, the
charter entity 22 works backwards from the maximum acceptable
per-flight passenger capacity. To this end, once the aircraft is
designed for optimal productivity and comfort, the maximum
sustainable occupancy should be determined. The charter entity 22
should then determine the per-flight passenger allocation by
multiplying the maximum sustainable occupancy by a fractional
amount, preferably between 0.50 and 0.75. If the per-flight
passenger allocation is too close to the maximum acceptable
capacity, then the availability of flights will diminish
accordingly, resulting in reduced utility to the fractional owners.
Contrariwise, if the per-flight passenger allocation is too low
(i.e. far less than the maximum acceptable capacity), then the use
allocation per fractional owner will correspondingly diminish,
thereby reducing the cost-effectiveness of the SFPA.
[0054] Thus, each fractional owner 15x receives through the second
charter agreement 30 rights to participate in flights having
luxurious amenities and an average of twenty passengers. It will be
appreciated that the per flight passenger allocation may be a
number other than twenty, and will depend upon the aircraft used,
and the level of comfort desired. Thus, for example, if the per
flight passenger allocation is fifty, then the total passenger-hour
allocation for the aircraft would increase greatly, and as a
result, each fractional owner 15x would receive a much higher
passenger-hour allocation per fraction owned. However, the comfort
level of the aircraft flight would be correspondingly diminished,
assuming the same sized aircraft.
[0055] It is noted that in accordance with another optional aspect
of the present invention, the number of flight hours per aircraft
is significantly less than that typical of commercial airlines. For
example, it is envisioned that each aircraft will be limited to
approximately eight hundred hours of operation on behalf of the
fractional owners 15x. The relatively limited use reduces annual
maintenance costs, prolongs the life of the aircraft, and helps
retain the capital value of the aircraft for the fractional owners
15x.
[0056] In exchange for the passenger-hour allocation and other
benefits, the second charter 30 requires each fractional owner 15x
to pay a management fee (Mgmt_fee) to the charter entity 22. The
Mgmt_fee is based on, and is preferably proportional to, the
passenger-hour allocation for each fractional owner 15x.
[0057] In one preferred business model, the charter entity 22
determines the Mgmt_fee by generating an hourly cost unit,
hourly_fee, and then multiplying the hourly_fee by the number of
passenger-hours allocated to each fractional owner 15x. The
hourly_fee is preferably based on the carrier fee C_fee per
passenger-hour and a charter service fee. Thus, the Mgmt_fee is
Mgmt.sub.--fee(FO.sub.--x)=hourly.sub.--fee*passenger-hour.sub.--allocatio-
n(FO.sub.--x),
[0058] where FO_x is the fractional owner 15x, and the
passenger-hour allocation (FO_x) is the passenger-hour allocation
of the fractional owner 15x, and hourly_fee is given by the
following:
hourly.sub.--fee=C.sub.--fee/(total passenger-hour
allocation)+service fee
[0059] where total passenger-hour allocation is the total
passenger-hour allocation of an aircraft (flight hours allocated
multiplied by the per-flight passenger allocation, discussed
further above), and service fee is the service fee/margin added by
the charter entity 22. Thus, in accordance with this embodiment of
the present invention, the charter entity 22 ensures viability by
obtaining sufficient payments to cover the operation of the
aircraft without requiring any ticket revenues.
[0060] In addition, the second charter 30 requires each fractional
owner 15x to pay an additional occupancy charge per passenger-hour
actually used. Thus, while the Mgmt_fee is paid by the fractional
owner 15x based on allocation, the occupancy fee is paid based on
actual use. Thus, at least some savings result from non-use of the
passenger hour allocation.
[0061] FIGS. 2 through 4 show flow diagrams that provide further
detail of interaction of the elements of FIG. 1. FIG. 2 shows the
operations involved in the purchase of an aircraft by the
fractional owners groups 12 and 14. FIG. 3 shows the general
operations of the SFPA. FIG. 4 shows an exemplary set of operations
involved in participating in a scheduled flight of a fractionally
owned aircraft by a party under the authorization of a fractional
owner.
[0062] Referring to FIG. 2, the flow diagram 200 shows an exemplary
set of operations performed by the sales and management entity 16
of FIG. 1 in facilitating the purchase of aircraft by the
fractional owners groups 12 and 14. The sales and management entity
16 negotiates and coordinates the transaction in exchange for a
mark-up on the aircraft price. For example, the mark-up may merely
comprise all or a part of the value of a quantity discount obtained
by the sales and management entity 16 for facilitating the sales of
multiple aircraft.
[0063] In general, in step 202, the sales and management entity 16
obtains a binding proposal from the source of aircraft 18
identifying a maximum cost involved for a purchase of one or more
aircraft. The sales and management entity 16 further obtains an
estimate for finishing the aircraft, as will be discussed below,
from a finishing center. The finishing cost estimate may be based
on engineering and/or interior design plans generated by design and
engineering professionals.
[0064] By obtaining a binding proposal for the aircraft costs, the
sales and management entity 16 may readily identify a sales price
to the fractional owners with a reduced risk of loss. Specifically,
the sales and management entity 16 may base the sales price to the
fractional owners on 1) the maximum cost identified in the binding
proposal from the source of aircraft 18, 2) the additional cost
associated with finishing operations on the aircraft, and 3) a
margin for the sales and management entity 16. By defining the
sales price based on the binding proposal and finishing cost
estimates, and as long as the sum of the fractions purchased by the
fractional owners is equal to one, the sales and management entity
16 will obtain a marginal income on the sale of each aircraft.
Moreover, by executing a binding proposal, the sales and management
entity 16 may "lock in" the price without actually committing to a
purchase of the aircraft. Thus, one advantage of the embodiment
described herein is the relatively low risk business model of the
sales and management entity 16.
[0065] In any event, in step 204, the sales and management entity
16 markets one or more aircraft to potential fractional owners. In
a preferred embodiment, each aircraft is marketed in connection
with a particular air route or city-pair. For example, the first
fractional aircraft may be marketed to the first fractional owners
group 12 for the New York to Los Angeles route. In this manner,
each fractional owner 15x ensures that at least the route of its
fractionally-owned aircraft will be serviced by the SFPA.
Accordingly, even if only a few routes are serviced by the SFPA,
the fractional owner 15x may ensure the usefulness of its
fractional ownership by purchasing a fraction for an aircraft
allocated to a route frequently traveled by the fractional owner
15x. As the SFPA grows to a large number of aircraft and more
flight routes become available, it may not be as necessary to tie
each fractional aircraft sold to a particular route. In any event,
as each fractional owner 15x purchases a fraction, the sales and
management entity 16 places the purchase proceeds in an escrow
account in step 206.
[0066] Then, in step 208, the sales and management entity 16
determines whether an entire aircraft has been subscribed. An
entire aircraft has been subscribed when the total of fractions
sold for that aircraft equals one or nearly one. Continuing with
the example illustrated in Table 1, after the purchases by
fractional owners 15a, 15b, 15c, 15d, 15e and 15f, the sum of the
fractions owned (see Table 1) is one. As a result, the first
aircraft would be fully subscribed.
[0067] If in step 208 it is determined that an aircraft has been
fully subscribed, then the sales and management entity 16 performs
step 210. If, however, in step 208 it is determined that an
aircraft has not yet been fully subscribed, then the sales and
management entity 16 returns to step 204. It will be appreciated
that if the aircraft is not fully subscribed by a predetermined
time limit, the fractional purchasers of the under-subscribed
aircraft would be entitled to a refund of their purchase money from
escrow.
[0068] In step 210, the sales and management entity 16 executes a
purchase order for the subscribed aircraft from the source of
aircraft 18. In step 210, a portion of the escrow account equal to
the final cost (from the source of aircraft 18) is provided to the
source of aircraft 18. The funds may be provided to the source of
aircraft 18 in stages, as is typical for aircraft sales. It is
noted that the sales and management entity 16 may proceed with
steps 210 and 212 while it continues to sell fractions of other
aircraft in step 204.
[0069] After step 214, the purchased aircraft is provided to a
finishing center. In particular, if the source of aircraft 18 is an
aircraft manufacturer, then the source of aircraft 18 provides a
"green" aircraft in exchange for the purchase price. A green
aircraft is a functionally operational aircraft that has little or
no aesthetic improvements or amenities. As a consequence, the green
aircraft requires external as well as internal finishing. Various
aircraft finishing centers exist throughout the United States.
Similarly, if the source of aircraft 18 is an owner of used
aircraft, then the source of aircraft 18 provides an aircraft that
typically requires substantial internal and external refinishing.
In either event, in step 214 the sales and management entity 16
directs the aircraft to one of the finishing centers to have the
aircraft finished in accordance with the specifications for the
SFPA aircraft.
[0070] In particular, the sales and management entity 16 preferably
specifies that each aircraft is finished in a manner consistent
with the level of comfort and productivity intended for the SFPA
aircraft. To this end, the finishing operation includes retaining
the services of an interior designer and/or design engineer, which
may be entities separate from the finishing center. It is
envisioned that the aircraft will be furnished with couches,
comfortable chairs, conference room and/or conference area
facilities, work stations, sleeping quarters and/or sleeping
furniture, internet, telephone and other productivity,
entertainment and comfort-related facilities are installed within
the aircraft.
[0071] The sales and management entity 16 transfers funds from the
escrow account to the finishing center (and, if appropriate, the
interior designer and/or design engineer) in exchange for the
finishing operation.
[0072] Once the finishing center has completed the finishing
operations in step 214, the aircraft is typically transferred to
the care of the carrier entity 20, subject to the execution of the
lease agreement 26 discussed further above. The sales and
management entity 16 then transfers the remaining escrow money (as
allocated for that aircraft) to its own accounts in step 216 as
payment for its services.
[0073] It is noted that the sales and management entity 16 may
actually purchase the aircraft from source of aircraft 18 and then
resell the aircraft to the fractional owners 15x. Alternatively,
the sales and management entity 16 may simply act as an agent for
the sale of the aircraft form the source of aircraft 18 to the
fractional owners. The above described steps may readily be
modified to suit either case.
[0074] FIG. 3 shows a flow diagram 300 of the activities involved
in transitioning the aircraft ownership by the fractional owners,
for example, the fractional owners 15a through 15g, into the use of
the fractionally-owned aircraft by the fractional owners.
[0075] Many of the operations involved in FIG. 3 (as well as FIG.
4, discussed below) preferably involve a networked computer system.
FIG. 5 shows an exemplary arrangement of a system capable of
carrying out many of the computer operations of the invention
described herebelow. With reference to FIG. 5, a central server
system 502 includes a processing circuit 504, a communication
circuit 506, and a memory circuit 508. The processing circuit 504
may be one or more processors of a general purpose computer,
programmed to, among other things, operate as a database server and
to otherwise carry out the operations attributed to the server
system 502 in this disclosure.
[0076] The communication circuit 506 is a circuit operable to
enable communication between the processing circuit 504 and other
computers or elements via the internet 510. However, it will be
noted that communication networks other than the internet 510 may
be employed. Those of ordinary skill in the art may readily
determine the appropriate communication circuit or circuits
necessary to enable communication on any number of networks.
[0077] The memory circuit 508 includes any combination of random
access memory, magnetic or optical disk memory, tape memory, or
other volatile and non-volatile memory devices, such as those
normally associated with a general purpose computing device having
the capability to operate as a database server.
[0078] Through the communication circuit 506, the central server
system 502 is configured to communicate to one or more various
remote computers 520 and 522 as well as a reservation system 524.
The remote computers 520 and 522 may suitably be general purpose,
internet-capable general purpose computers which may be a part of
one or more other networks. In the embodiment described herein, the
central server system 502 may also communicate with a terminal
security computing system 526 through the Internet 510, or
alternatively, through a private network such as a LAN. The
reservation system 524 is a computer and software system that
tracks flight reservations and flight availability. Many types of
reservation systems are known in the art.
[0079] The system shown in FIG. 5 will be referenced from time to
time during the description of the operations of FIGS. 3 and 4. It
will be appreciated that the system shown in FIG. 5 is merely
illustrative of the basic functional components. Implementation of
the functions may incorporate further computing devices and
systems.
[0080] Referring again to FIG. 3, the first step towards enabling
use of the fractionally owned aircraft by the fraction owners is
the execution of the various agreements discussed above in
connection with FIG. 1. In particular, in step 302, the lease
agreement 26, the first charter 28 and the second charter 30 are
executed by the appropriate parties as discussed above in
connection with FIG. 1. The lease agreement 26 transfers a
leasehold interest in the aircraft from the fractional owners group
(e.g. fractional owners group 12) to the carrier entity 20. The
first charter 28 defines the terms of the relationship between the
carrier entity 20 and the charter entity 22. The second charter 30
defines the rights of each fractional owner 15x to participate in
flights of the fractionally owned aircraft of the SFPA and defines
the costs associated with those rights.
[0081] Thereafter, in step 304, each fractional owner 15x submits a
list of approved flyers associated with the fractional owner 15x.
For example, if the fractional owner 15a is a corporation, the
fractional owner 15a may submit a list that identifies the
corporate officers, high level management, clients, other guests or
other employees of the corporation. Such approved flyers would then
be eligible to participate in the flights of the fractionally owned
aircraft of the SFPA at the "expense" and under the authority of
the fractional owner 15x.
[0082] Referring to FIG. 5, the fractional owners 15x may suitably
submit their list of approved flyers via the internet 510. For
example, consider a situation in which the fractional owner 15a has
access to the computing system 520. The fractional owner 15a
obtains access to a website maintained by the central server system
502 via the internet 510 and enters a data list identifying
approved flyers. The processing circuit 504 thereafter forms a data
file associated with the approved flyer. The data file will be used
to associate security and identification information regarding the
passenger. The processing circuit 504 stores the data file in the
memory circuit 508.
[0083] It is noted that the central client server 502 or another
similar computing system also maintains a data file associated with
the fractional owner 15a, for the purpose of tracking usage of
passenger-hours, payments, and other data.
[0084] Referring again to FIG. 3, in step 306, each of the approved
flyers then voluntarily submits to a background security check. In
particular, to ensure air travel at a relatively high safety level,
each potential passenger (approved flyer) of the fractionally owned
aircraft must pass a background security check. It is preferable
that the background security check be extensive, such as that
ordinarily required to obtain access to low level classified
government information. As a result, each passenger flying on any
flight of the SFPA has passed a background security check, thereby
enhancing the safety of each passenger. The results of the
background security check of each passenger may be stored in the
data file associated with the approved flyer in the memory 508. To
this end, the security background check information may be entered
either through the internet 510 or directly into the central server
system 502.
[0085] It will be appreciated that in some embodiments, data files
may only be created for those approved flyers that also pass the
security background check. In other embodiments, data files of
approved flyers that fail the security background check may also be
retained.
[0086] In step 308, identification information is generated for
each approved flyer. In particular, unique personal identification
data is obtained from each approved flyer and stored in the data
file associated with the approved flyer in the memory 508. The
unique personal identification data is later employed to verify the
identification of each person attempting to board a flight on a
fractionally owned aircraft. Such verification is discussed further
below in connection with FIG. 4.
[0087] The unique personal identification data preferably comprises
biologically-oriented identification data, such as retinal scan
information, facial scan information, fingerprint information, or
other unique biological identification information. Alternatively,
or in addition, the unique personal identification data may include
identification information encrypted and stored within a Smart
Card-type device. Other unique personal identification information
may also be employed.
[0088] Thus, for example, in step 308, each approved flyer may be
required to arrange for a retinal scan. After the retinal scan is
performed, the retinal scan data is provided via the internet 510
(or through some other means) to the central server system 502. The
central server system 502 stores the retinal scan data in the data
file for the approved flyer in the memory 508.
[0089] Referring again to FIG. 3, once steps 306 and 308 are
successfully carried out for approved flyers, the approved flyers
are eligible to participate in flights on the fractionally owned
aircraft of the SFPA.
[0090] FIG. 4 shows a flow diagram 400 of the steps carried out in
connection with executing an exemplary flight transaction on the
SFPA. Reference to elements of FIGS. 1 and 5 will be made during
the description of FIG. 4. FIG. 4 will be described in relation to
an example in which two approved flyers, AP.sub.--1 and AP.sub.--2,
obtain reservations for and board a flight from New York to Chicago
on January 15th. AP.sub.--1 and AP.sub.--2 are associated with the
fractional owner 15a. In other words, AP.sub.--1 and AP.sub.--2 fly
using the passenger-hour allocation belonging to fractional owner
15a.
[0091] In step 402, a party authorized by the fractional owner 15a
obtains information from the charter entity 22 regarding
availability of seats on a New York to Chicago flight in the SFPA
system for January 15.sup.th. The authorized party may suitably be
a travel professional used by the fractional owner 15a, the parties
AP.sub.--1 and AP.sub.--2 themselves, or another agent of the
fractional owner 15a. To obtain seat availability information, the
authorized party may log into a website maintained at the
reservation system 524. Alternatively, the authorized party may
call by telephone or use some other information source.
[0092] If two seats are available, then in step 404 the authorized
party books two seats for AP.sub.--1 and AP.sub.--2 on the flight.
The reservation system 524 first verifies that the authorized party
is authorized to reserve flights on behalf of the first fractional
owner 15a. The reservation system 524 may suitably communicate with
the central server system 502 to perform such verification, or may
do so locally.
[0093] Steps 406 and 408 thereafter take place on the day of
flight. In step 406, the identification of the two people
purporting to be AP.sub.--1 and AP.sub.--2 occurs at or near the
boarding gate for the flight. To this end, each of persons
purporting to be AP.sub.--1 and AP.sub.--2 provides identification
data that is checked against the unique identification data stored
in the data files associated with AP.sub.--1 and AP.sub.--2. For
example, if the data obtained in step 308 of FIG. 3 was retinal
scan data, then in step 406 a retinal scan is performed on each of
the persons purporting to be AP.sub.--1 and AP.sub.--2.
[0094] Then, in step 408, the results of the scan measurement
performed in step 406 are compared to the retinal scan data in the
data file stored in the memory 508 to ascertain the identify of
AP.sub.--1 and AP.sub.--2. To this end, the results of the scan
measurement may be communicated from a computer system at the
airport, e.g. the terminal security computing system 526, to the
central server system 502. The processing circuit 504 then compares
the received measurement scan data with the scan data in the
relevant approved flyer data file in the memory 508. The processing
circuit 504 then communicates the results of the comparison back to
the computing system 526 at the airport. The computing system 526
thereafter communicates the results to personnel at the airport
either visually via a display 528 or indicator lights 530, or
audibly via an audio generator 532.
[0095] Assuming that AP.sub.--1 and AP.sub.--2 are successfully
verified in step 408, then in step 410, AP.sub.--1 and AP.sub.--2
are subject to baggage and personal safety screening at a level
consistent with or greater than security measures dictated by
governmental regulations. It is noted that such screening may
alternatively occur at least in part prior to the identification
verification in step 408.
[0096] Assuming that AP.sub.--1 and AP.sub.--2 successfully
complete steps 406, 408 and 410, then AP.sub.--1 and AP.sub.--2 are
permitted to participate in the flight from New York to Chicago. At
some point, in step 412, the passenger hour allocation for
fractional owner 15a is reduced in amount commensurate with the
flight taken by AP.sub.--1 and AP.sub.--2. Thus, if the New York to
Chicago flight has a two hour duration, then the passenger-hour
allocation of the fractional owner 15a is reduced by four (two
passengers at two hours each). A similar deduction would occur when
AP.sub.--1 and AP.sub.--2 board the return flight.
[0097] The passenger-hour allocation for each fractional owner, as
well as the corresponding deductions thereto, are maintained and
tracked on a computing system. To this end, such information may be
maintained and tracked on the reservation system 524, the central
system server 502, or another computer such as the computer 522. In
any event, it is preferable if deduction and allocation information
in the appropriate computing device may be updated via the Internet
510 or other network.
[0098] It is noted that the fractional owner 15a will further be
billed a per-hour occupancy charge for the passenger hours consumed
by AP.sub.--1 and AP.sub.--2 in step 414. Such billing may occur on
a monthly basis or otherwise in arrears. As discussed above, the
occupancy charge is in addition to the monthly management fee paid
by the fractional owner 15a.
[0099] The above system thus provides for fractional ownership of
aircraft that is otherwise regularly scheduled for normal flights.
By contrast, prior fractional ownership systems were specially
scheduled custom flights, thereby reducing the possibility of
concurrent use by multiple owners. Without providing for use by
multiple owners, the availability (use allocation) of the aircraft
is greatly diminished.
[0100] Moreover, the present invention allows for the cost of any
particular flight of a fractionally owned aircraft to be divided
among multiple fractional owners. By contrast, prior fractional
ownership systems could not spread costs because of current federal
regulations. However, the arrangement described herein allows for
cost sharing or splitting on individual flights of the aircraft. It
will be appreciated that in the exemplary embodiment described
herein, the cost sharing does not necessarily require that the
entire cost of each flight be split among those owners who use the
flight. In other words, each fractional owner 15x "pays" (via its
use allocation) for the number of its passengers that participate
in the flight, regardless of how many other fractional owners
participate. However, the entire system is set up to allow multiple
fractional owners to participate in flights, each paying via its
use allocation, and thereby effectively sharing costs.
[0101] The features of the present invention result in an airline
that provides flight service of unparalleled space, luxury and
productivity, by keeping the number of passengers relatively low,
even on a jumbo jet. Moreover, the features of the present
invention provide such flight service for a price that is
competitive with both first class commercial airline travel and
prior art fractional ownership programs.
[0102] Another feature of the present invention is that with
multiple fractional owners, the SFPA can provide the scheduling and
route availability convenience of a commercial airline, while
avoiding the possibilities of economic loss associated with
commercial airlines. In particular, under the system described
above, each fractional owner 15x pre-commits to a certain level of
usage based on its fraction owned. Thus, whether or not the
fractional owner 15x actually consumes its use allocation, the
management fees are paid, and the aircraft purchase price is paid.
As a result, various entities that operate the SPFA, namely, the
charter entity 22 and the carrier entity 20 have a greatly reduced
risk of unprofitability and/or insolvency due to low ridership.
[0103] In one alternative of the present invention, each fractional
owner 15x is provided an incentive for using its own
fractionally-owned aircraft. For example, the use allocation of
each fractional owner 15x may be consumed at a different, lower
rate when used on the fractional owner's own aircraft.
Alternatively, occupancy fees may be reduced or waived. Thus, while
each fractional owner 15x is still permitted to participate in the
flight of any fractionally owned aircraft in the SFPA, each
fractional owner 15x benefits in some manner from using its own
aircraft.
[0104] Such an incentive provides a motivation for each fractional
owner 15x to purchase fractions of aircraft assigned to air routes
(e.g. city-pairs) frequently traveled by the fractional owner 15x.
This motivation will tend to optimize the number of routes served,
and the frequency of flights on each route, because the demand for
particular routes will become more apparent through the incentive
for each fractional owner 15x to fly the route of its own aircraft.
To this end, it is noted that the incentive need not be limited to
the fractional owners particular aircraft, but instead may extend,
as least partially, to all flights on the same route as that served
by the fractional owner's aircraft.
[0105] In another variation, provision may be made for fractional
owners to participate in the SFPA between the time that the "green"
aircraft is purchased from the source of aircraft 18 and time when
their aircraft becomes available for passenger flights. To this
end, one or more existing aircraft may "lend" a flight-hour
allocation to the new, unfinished aircraft. For example, an
existing fractionally-owned aircraft may normally carry an eight
hundred hour annual flight hour allocation. However, to service
fractional owners awaiting the finishing of a new
fractionally-owned aircraft, the existing aircraft may increase its
annual flight hour allocation by two hundred to accommodate the new
owners. Then, when the new aircraft is placed into service, the
existing aircraft reduces its flight hour allocation to below its
normal allocation, with the difference being made up by the new
aircraft. When the existing aircraft has "recovered" the extra
flight hours allocated while the new aircraft was unavailable, the
flight hour allocation of the existing aircraft is returned to
eight hundred. In this manner, new fractional owners may
participate immediately in the SFPA, even though their aircraft is
not yet available, without taxing the flight-hour usage of aircraft
owned by other parties over the long term.
[0106] Alternatively, in order to provide for immediate
participation by fractional owners, a separate aircraft may be
chartered to serve the route assigned to the new, unfinished,
fractionally owned aircraft. In still another alternative, an
arrangement may be made with one or more existing airlines to
reserve a predetermined number of first class seats on particular
flights to accommodate the fractional owners. Such alternative
arrangements may be funded from the new fractional owners
management fees provided to the charter entity 22. One advantage of
providing for immediate participation by new fractional owners is
that the new fractional owners receive near immediate utility out
of the significant monetary outlay associated with the purchase of
the new aircraft. The above described arrangements provide for such
immediate utility without requiring the sales and management entity
16 to purchase and finish aircraft prior to obtaining purchase
commitments, thereby assuming the risk that an aircraft will not
sell.
[0107] It will be appreciated that the above described embodiments
are merely exemplary, and that those of ordinary skill in the art
may devise their own implementations that incorporate the
principles of the present invention and fall within the spirit and
scope thereof. By way of example, it will be appreciated that two
or more of the entities shown in FIG. 1 may be combined into one
entity. For example, the sales and management entity 16 and the
charter entity 22 may be combined into a single entity. Likewise,
the carrier entity 20 and the charter entity 22 may be combined,
thereby eliminating the need for the first charter 28. Moreover,
individual activities of the various entities may be shifted to
other entities. For example, the sales and management entity 16 may
collect the management fees from each fractional owner 15x, thereby
necessitating an additional agreement with the charter entity 22 as
well as each fractional owner 15x.
* * * * *