The airline industry has not had a good year. A series of plane crashes has undermined passengers' faith in the safety of air travel, and skyrocketing oil prices in the second half of the year have threatened the bottom lines of many airlines. Yet Dagmar Grossmann, CEO of business air-travel provider Grossmann Jet Service, says business air travel — renting private planes to corporations or individuals for specially tailored trips — is still booming. In an interview with The Prague Post, Grossmann explains why it pays to hire business jets in an age when low-cost airliners are making inexpensive travel a reality for a growing number of people.

1. This year has frequently been labeled a black year for the airline industry because of a series of plane crashes and increasing oil prices. Did anything go particularly well in 2005?

My business is completely different from the regular airline business. You can see it as taking a taxi instead of a bus. Our clients see the advantage in flexibility, not prices. Accidents are always happening, but because there are always at least 200 people affected at once, reports about accidents seem like more of a threat to the public. Statistics show that air travel is safe. My business is really booming from the fact that it is becoming more and more difficult to travel by public aircraft because of security and other restrictions.

2. Increasing oil prices have been raising eyebrows among airline managers during the second half of the year. Even major airlines have suffered financial woes. How did oil prices affect your company?

As I explained in the first question, my business is different. I have to fight with other factors. Sept. 11 [2001] was especially hard for us.

3. Aren't smaller business air-travel providers more at risk of accidents?

Not at all. Our commercial operations have been inspected by UCL [University College London], and all the regulations are the same or even tougher than those for regular airlines. There is no way to avoid repairing malfunctioning parts or sending pilots for recurrent training. In my business, if turbulence disturbs a client, the plane might not be used again. People who have more money are more demanding. I would say that there are more people caring for each individual aircraft in business air travel, which is clearly an advantage.

4. What is the demand for private business flights in this country?

There are only a few serious competitors in the Czech Republic and high demand, so I am in the position of a market maker. Selecting Prague as the base for our business was not only about our desire to attract Czech clients. It was also important to see that we could operate easily from here. Apart from flying [locally], we also do flights from London to New York. Actually, our business is mostly in other parts of the world. But there are more and more clients in the Czech Republic.

5. Given the success of budget airlines, it seems that companies are interested in reducing the cost of business travel. Do you think your strategy actually runs contrary to market demand?

Our service can never be compared to that of a low-cost carrier, but as I already said, it's got different advantages. If you want to travel from Prague to Hannover [on regular flights] you have to change planes at least once. Then, if your meeting runs late, you miss your plane and have to stay overnight. If all these factors are taken into account and added to the price of a low-cost carrier's ticket, you get my price. In addition, with my airline you can choose your date of departure, and you always travel directly.

This business is very special. I even have to explain it to the people around me: lawyers, advisers and others. My business is about more than just the flights. It's also about the additional services we secure for a client without extra charge.

6. What do you see as the main threat to your business in the future? How significant is the threat of other business air-travel providers operating here?

I always think positive, and I never see a threat — only new conditions. Maybe there will be more jets in the future, but the good thing is that not many people are familiar with business aviation and have all the contacts. And in this business, personal relationships are key.

7. Challengers are part of your fleet. These planes, which are also used by the Czech government, have repeatedly experienced technical difficulties this year. How worrisome were those incidents? Have you stepped up your inspections of these planes?

I don't really think the Challenger has more difficulties [than other jets]. We are using a Challenger 601, and it's a good aircraft. I don't remember having any [technical difficulties] in the last five years.

8. Your company also offers corporations and individuals the opportunity to co-own business jets. Do corporations take advantage of this option?

The option to co-own a business jet is very interesting for clients because they don't have to assume the risk of making the full investment. On the other hand, owning a jet can be burdensome because of the various rules and regulations. Personally, it makes no difference to me if a plane is owned by one or four people.

9. Is the offer of 'cooperative ownership' just a marketing trick for business air-travel firms to expand their fleets without taking loans or leasing the jets?

I do not understand this logic. Only 10 percent of our corporate clients are cooperative owners. The ones who are know what it is about.

10. Which would you prefer: being invisible or being able to fly?