Chauffair has purchased four jets owned by global engineering group Tomkins plc. Following several months of negotiations, Nick Probett, md and owner of Chauffair, agreed “a fair commercial price” for the three Hawker jets and a Citation V.

Previously, the four Tomkins jets had been leased to Chauffair and were used by Tomkins’ directors on a commercial basis in a business arrangement with the company.

Highlighting a change in trends from ownership to charter and fractional leasing, Probett said: “This sale represents the final curtain for the ownership of corporate jets by public companies. Directors prefer to buy or lease time from us because they get a better deal and better service from the size and flexibility

of our fleet.”

Talking to EBAN Probett said, “The ownership of corporate jets by British public companies has been on the decline since the mid 1980s.

“The essential reason for it was the 100 percent capital right off against tax. Up until the mid 80s, when you bought an aeroplane you could write off the entire purchase price against your corporation tax bill instantly in one year. It was a very attractive wheeze in the days when corporation tax was 50 per cent – it was something that acted as a subsidy.

“I have detected most definitely that as the tax regime has become less of a subsidy and political correctness has increased, it is seen to be not as acceptable for public companies own private jets.”

The sale of the aircraft follows an independent review carried out at the end of last year by Ernst & Young regarding certain expenses and other items charged to Tomkins.

Former chief executive of the company Greg Hutchings resigned in October 2000 after allegations that he misused Tomkins’ corporate jets, a helicopter and two flats in London. Hutchings has denied the alleged corporate excesses and claims that the investigation carried out by Ernst & Young has cleared him of any wrongdoing.

Probett commented, “The irony was that he didn’t use the jets very much. It was something that was done for tax reasons initially. Tomkins did lease them to me they got a commercial return on them. They paid to use them.”

Probett recalls the effects of the much publicised allegations: “When the problems occurred it really put the frightners on the few remaining public companies that had corporate jets. I know for a fact that one company, literally within a couple of weeks, scrubbed the logo off their aircraft, repainted it and changed the registration. It went into real panic mode about how to reduce costs. I think a shiver ran through what remained of the public company corporate jet world – it’s now almost insignificant.”

Probett does not intend to keep the four Tomkins jets, “I will sell them in the next year. I’m not planning at the moment to expand the fleet – just replace it.”

Chauffair ordered seven Citation Excels from Cessna in 1999. Deliveries are expected to occur between August 2001 and February 2002.

“Any expansion above seven aircraft will be with the Excels. I might possibly keep one or two of the Hawker 800s in the short term,” added Probett.

“I’ve got a significant number of members in our fractional leasing service Chauffair Share already. Right now ten make use of my aircraft – that’s almost as many as I’m comfortable with for the moment because I’m still using a mixed fleet,” Probett continued. “I do confidently expect that over the next year I

will at least double the membership of Chauffair Share – it will then probably represent a third of

my income.”

Finally Probett looks to the future: “Its going to be an interesting time over the next 18 months. For Chauffair it is an important step forward to get this Tomkins business out of the picture, because it was definitely muddying the waters.”