Advanced Air (AN, Hawthorne) is planning to transfer the recently acquired business jet fleet of Desert Jet (DJR, Palm Springs Jacqueline Cochran Regional) to its own Part 135 certificate within the next four months to expand in the mid-size segment.

"All Desert Jet aircraft, hopefully, in the next 120 days will be moved over to the Advanced Air certificate and operated under our certificate. We see a high volume of demand for Citation Jets, making them a key area for growth. They also have a King Air 350, which we operate, and Sovereigns, which complement our Challenger 300s," President Levi Stockton told ch-aviation in an exclusive interview during the NBAA-BACE in Las Vegas.

Desert Jet's Part 135 fleet currently comprises one Challenger 300, one Citation Bravo, three Citation Jet 3s, two Citation Sovereigns, and one King Air 350i. In turn, Advanced Air's business jet fleet consists of two Challenger 300s and one G550.

Stockton explained the acquisition was driven by the desire to strengthen its ad-hoc charters, with Desert Jet being the right fit.

"We started the business with on-demand charter management aircraft, and Desert Jet is doing that. This enhances our fleet, adding more inventory. A lot of our assets are dedicated to our scheduled airline service. So we wanted to continue to grow the on-demand charter business," Stockton explained.

Following the recent addition of the first G550, Advanced Air is looking to further grow its large jet fleet to strengthen its long-range, worldwide charter capabilities. As such, with its diversified business model, Advanced Air is relatively immune to fluctuations in the charter market.

"When one thing slows down, usually another thing picks up for us. But that's why charter is what it is. It's up and down. You're at the mercy of the phone ringing," Stockton said. "The fourth quarter of the year is always the strongest charter market, so we're starting to see it pick up again. But I try not to live and die by the ups and downs of charters. It's nice when it's good, and it's okay when it's not."

Turboprop and Dornier fleet

Advanced Air also operates nine Beech (twin turboprop) King Air 350s, two PC-12s, and two Do328-300s. The airline prefers the twin-engine King Air over the PC-12 in terms of its turboprop fleet. Besides the two engines, the former also has higher payload capabilities. And although "there is nothing wrong with the PC-12", the airline would prefer a single-type turboprop fleet as it is easier to maintain. Currently, only one PC-12 is active and dedicated to the EAS route between Las Vegas Harry Reid, Merced Regional, and Hawthorne. The contract is up for renewal at the end of 2025, and the future of the PC-12 fleet will depend on whether the carrier continues to serve the route, Stockton said.

In turn, the Do328s remain an important part of the airline's fleet. Advanced Air intends to operate them "as long as we can get gear and engines". The type's short-field capabilities are crucial at airports such as Hawthorne and Crescent City. Advanced Air is currently looking at how to replace them in the long term, but for now, "we still have a decent amount of life left in the ones we have".

Any 30-seater fleet growth is contingent on Advanced Air winning more EAS contracts that would require such capacity. It has no plans to go above this size category, as that would require Part 121 certification.

Network strategy

Advanced Air owns the Do328s, one PC-12, and four King Airs, all of which are used predominantly for scheduled flights. It operates 194 weekly scheduled departures in the southwest United States, serving 12 airports. Four destinations (Crescent City, Merced, Silver City, and Carlsbad, NM) are served under EAS or AEAS conditions.

The airline considers EAS contracts in the context of its entire network, which also includes non-subsidised routes. Stockton said Advanced Air would only bid for routes in the southwest, which fit its existing network, and has no plans to compete for EAS contracts elsewhere.

FBO and Part 91 strategy

Advanced Air only acquired Desert Jet's charter business, not its Palm Springs International FBO or Part 145 maintenance facility. It owns an FBO, Jet Center Los Angeles, located at its main base at Hawthorne airport and is looking at options to grow its footprint in this segment. However, Stockton conceded that the FBO market is now oversaturated.

Although a substantial part of the carrier's fleet is managed, Advanced Air currently has no aircraft on pure Part 91 operations. All of the aircraft it manages are available for charter under its Part 135 certificate. Stockton said the operator is not opposed to pure management contracts, but such opportunities have not yet materialised. If approached, Advanced Air would evaluate management opportunities on a case-by-case basis and would prefer to manage an aircraft type it already operates.

Regarding supply chain issues, Stockton said that the supply of parts was getting better. Some components remain a challenge - for example, windshields - and the prices are high, but Advanced Air has no problems with the availability of spares. Another important constraint is the availability of simulator slots for pilot training.