Sharp upturn sees Blue Star Jets head for Europe

By James Quinn, Wall Street Correspondent

An American broker of luxury private jets is set to boost its presence in Europe on the back of a sharp upturn in demand from passengers from the UK and the rest of the Continent.

Blue Star Jets, which is headquartered in New York but has offices around the world, is working on plans to dominate the European private jet market, taking on rivals such as NetJets Europe - owned by Warren Buffett's investment company Berkshire Hathaway.

Blue Star, whose celebrity clients include rocker Rod Stewart and tennis player, Andy Murray, wants to expand its continental presence from an office in London to 12 offices across Europe within a few years.

advertisementBut in spite of the traditional high-rolling image of people who hire private jets, Blue Star will increasingly market its services to families with high levels of disposal income, who are driving the rise in the company's European traffic.

The push into Europe will involve heavy marketing as well as offering services such as escort flights for children.

According to Blue Star co-founder and president Todd Rome, the percentage of the firm's business stemming from Europe has risen by 80pc in the last 12 months.

Last year, 12pc of Blue Star's monthly flights - known as "legs" in the industry - emanated from Europe, accounting for 250-290 of Blue Star's 2,400 monthly legs.

"Now, we're seeing north of 525 legs a month from Europe alone," said Mr Rome, who owns the business with co-founder and chief executive Richard Sitomer.

Mr Rome puts the upsurge in European demand for private jets down to the weak dollar and America's economic downturn, with some of its US customers now no longer able to afford the $89,000 (£45,000) it costs to charter a 14-seat jet one-way across the Atlantic.

He puts the uptick in European passengers down to a "new class of flyer," saying there has been increased interest in smaller, lighter jets carrying perhaps a family to the US on holiday. "We're also seeing a number of families grouping together and sharing aircraft."

Revenue is fairly evenly split between corporate work, celebrities and sports stars, and leisure travel.

Blue Star basically acts a broker of private jets, allowing customers to choose from over 5,000 aircraft, with Blue Star then working with the industry to get the best price.

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