Alerion Aviation (Long Beach) wants to prioritise growth around aircraft types it already operates as it facilitates more efficient operations, its chairman Bob Seidel told ch-aviation in an exclusive interview.

"We target the types of aircraft we already operate because we know them and because we already have a crew. One of the biggest challenges today is finding the crew to fly the aircraft and then getting them trained," he said. "G280 is an example of that. We have one of those now. We'd like to get more. It's very, very popular, and we'd love to have more G280s. Challenger 300s are very, very popular airplanes, also Challenger 350s and Challenger 3500s. Global 5000 are very popular, and we'd like to have more of those."

Seidel emphasised that the current regulations require each operator to train the pilots, even if they have just completed the same training on the same type with another operator. This means that having a big enough pool of trained crew for the type is a strong advantage.

The operator's fleet currently comprises one Challenger 300 and one Global 5000. It also has three GVs and four G200-type aircraft (including one Astra Galaxy) - "so we're covered pretty much there in terms of our capacity," Seidel said while adding that the airline could add one more G200.

Alerion Aviation's Part 135-certified fleet also includes two Citation Sovereigns, one Citation X, one GIV-SP, one Hawker 900XP, and one Learjet 60. Seidel said that the Citation X is now "waning in popularity" so the operator is not looking to add any more of this type.

Super-midsize and large jet focus

Alerion Aviation's focus on super-midsize and larger aircraft is largely driven by operating costs. While the administrative overheads related to smaller jets are at a comparable level, the yields from charters are much lower. Dispatching smaller aircraft is also more work-intensive as they operate a higher number of shorter flights.

"We do fewer, longer trips. Our preparation for a trip for eight hours of flight time, for instance, is about the same as our preparation for one hour of flight time. But the margin that one makes on the cost of the charter versus the direct operating cost of the aircraft is much, much smaller on a light jet," Seidel underlined.

While the volume of charter contracts on smaller aircraft is higher, the margins are too low to make it an attractive market. Seidel said the midsize jets are the "sweet spot" in terms of the balance between the charter rate and overhead costs. The heavy jets are also lucrative due to high yields on long charter flights.

Alerion Aviation does not own its aircraft and takes just 10-15% of the charter revenue, with the rest going back to the aircraft owner. This discourages it from dabbling in the higher-volume but low-margin segments of the market. Likewise, while Seidel personally called the PC-12 his "favourite airplane in the world", Alerion has no plans to enter the turboprop market due to the administrative complexity of running such a fleet.

Business jet market environment

Seidel opined that the business aviation industry welcomed Donald Trump's re-election as US president, expecting deregulation and other changes to boost the market. The industry has also appreciated new appointments at the Department of Transport and the FAA. The president's plan to restore a 100% depreciation bonus, announced in early March but expected to be implemented retroactively from January 1, 2025, will likely encourage many customers to buy new aircraft.

"Used aircraft inventories are still below 10% of fleet size, which traditionally we call a seller's market. But it's changing. Pricing has not really increased year over year from 2024 to 2025, so I think we're in a state of equilibrium in terms of buyers and sellers. And what will affect that, I think, is if this tax incentive goes through, and we'll go back to 100% bonus depreciation, I think that'll push people over the edge, and we will start to see a run on the inventory that we have," Seidel said.

However, this sense of positivity has been dampened by the looming threat of tariffs, which can impact both aircraft and parts imported from abroad. Alerion Aviation's focus is on pre-owned aircraft, which are usually already in the United States, and not factory-new units, so the impact of the potential tariffs would likely be muted, even in terms of the planned Challenger acquisitions.

Medium-sized company on both coasts

Alerion Aviation pitches itself to prospective owners as a medium-sized company that can provide very high-quality services, including its top-tier safety rankings, while maintaining a personalised approach.

"My elevator pitch to customers is, look, you can go with a bigger company, and you can pay higher prices, and you can be just one number out of 200 airplanes that they operate, and hope that they will look after you with your interests at heart. Or you can come to my company and you can be treated like a friend, like a person that we know," Seidel said. Alerion is "heavily staffed in terms of our administrative oversight" to ensure safety and operational efficiency, he added.

Alerion Aviation bases its aircraft in fixed locations, a strategy dictated by its preference to assign crew to a specific airframe.

"We don't have enough aircraft or crew to do that. It's easier to float a fleet if you own all the aircraft and the crew as compared to when you manage the aircraft. And although the crew are our full-time employees, they are generally designated for a particular tail. [...] That's a strategic disadvantage as an air carrier, as a Part 135 operator, because those who float their fleets can offer one-way pricing more easily than we can," Seidel conceded.

The operator currently bases its aircraft in the country's three main markets: the New York region, Florida (West Palm Beach International and Miami Opa-Locka), and California (Van Nuys, Santa Ana, CA, and Burbank). There is demand for charter in other regions of the country, notably Texas and the Chicago region, but if Alerion Aviation grew there it would be through acquisition rather than organically, Seidel said.

"At the moment, we're looking to grow our fleet organically, based on some marketing and strategic decisions we've taken in the last three months. We're going to see how that goes. If it's not quick enough, if it's not getting us to our targets soon enough, then we will pivot to an acquisition," he explained.