Business Aviation Flexes Competitive Muscle as Takeover Looms; Mineta Nomination Viewed Favorably.

Business Editors

WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Jan. 22, 2001

At a time when more and more people are opting for business aviation over commercial airlines, and with the possibility of a TWA takeover reducing the number of options for the business traveler, the business aviation sector is poised for a very competitive year.

Further, the nomination of Norman Mineta as Transportation Secretary is looked upon very favorably by business aviation providers.

"There is no question our growth will continue at the rate we have seen the past several years," said Jim Christiansen, COO and Executive Vice President of TAG Aviation, the world's largest private aviation company.

"Business aviation is a very viable option for the business traveler who can't afford the delays and hassles of scheduled airlines," commented Christiansen.

"In fact, business aviation is the only option for travelers. The recent news that American Airlines intends to purchase TWA, as well as some of the assets of US Airways means, quite simply, that there is less choice for the consumer in the commercial sector," said Christiansen. "Fewer choices does not necessarily mean better service," he added. "It means you have fewer options for routes and pricing."

In contrast to commercial carriers, business aircraft take-off and depart from smaller less congested airports that reach 100 times more destinations than their commercial counterparts. "It's so cost-effective, and it defines time management," said Christiansen. "There are no long lines, lost luggage, and runway delays." Many business aircraft are equipped with all the tools today's busy traveler needs: phones, faxes, and computers.

Business aviation, which has experienced an astounding 90 percent increase since 1990, is expected to continue its unprecedented growth as time becomes an even more valued commodity, and efficient, secure travel a necessity for many business travelers. "This is an exciting time for us and the Mineta nomination has also added to our fervor," said Christiansen.

As an informed individual, many in business aviation feel Mineta will bring a practical perspective on issues facing the airline industry. "The business aviation community is eyeing Mineta's nomination very positively because he has extensive knowledge of the aviation industry," said Christiansen.

"There are numerous issues floating around that, if not approached from an informed perspective, could have serious impact on our industry," Christiansen added. "These include user fees, funding for general aviation airports, and improvements in the Air Traffic Control system. These will all continue to require close monitoring on our part."

Mineta gained his expertise on airports and air safety when he served as chairman of the House Public Works and Traffic Committee. He began a sweeping review of aviation in the 1990s when he headed up the National Civil Review Commission (NCARC). He resigned midterm, in 1995, to join the large defense contractor, Lockheed Martin, as senior vice president of transportation systems and services.

"This nomination will bode well for our industry," said Christiansen. "We are at a time like no other in this industry, and we intend to get out there and let the consumer know we are a viable, safe, efficient alternative to commercial carriers."