Investors wanting their rates of return to take flight have a new, attractive option with Dynamic Flight Services Inc.

The Calgary-based air charter business has been transporting clients comfortably aloft for almost 10 years. Now it’s raising $2 million by presenting investors with an opportunity that combines low-risk investment with an excellent rate of return.

The offering is built on the foundation of Government of Canada strip bonds. The term sounds slightly naughty, but it’s actually a well-established, popular vehicle for expanding capital.

A strip bond entitles the holder to a single payment of a fixed amount in the future without the payment of any interest in the interim. The interest portion of the bond is “stripped” away, leaving a “residual” bond.

Dynamic owner Arnie Toews has introduced a common-sense investment boasting a return of about 8.6 per cent.

Arnie Toews, owner of Dynamic Flight Services, explains the attraction to investors:

“If somebody who has a lot of income and doesn’t want any more income but wants capital, he’ll look at this investment. If he gets more income, he’s going to get taxed at the highest rate.

“But he’ll want capital 10 years down the line, say, when his grandson is going to university.”

Out of $10,000 raised, for example, 63 per cent goes to buying the strip bonds.

“That gets lodged into the purchaser’s RRSP or RESP or RRIF,” Toews says. “The remaining 37 per cent is going to be loaned to Dynamic through a limited partnership. That’s how the structure is set up.

“In 10 years, it will mature in their RRSP to give them back the solid $10,000 that they invested. Everything the limited partnership pays back to the investor is over and above that. That’s paid twice a year.”

The return in a 10-year-period would be a net to the investor of about 8.6 per cent – far better than the typical four or five per cent available at your local bank.

Of course, the wise investor looks at more than just the projected numbers. Equally important is the company’s stability and long-term commercial prospects.

Dynamic Flight Services scores high in both respects. Founded in Calgary in April 1994 with several small planes, Dynamic has expanded to run charter flights with client choices from six aircraft, including Beech King Air B100s, plus Pipers and Cessnas. Dynamic is located at Esso Avitat #9, 575 Palmer Road N.E. and recently opened a new base at the Edmonton City Centre Airport.

It offers executive air charter, day trips into oil fields, an air and ground transportation program for core samples, long-term contract flying and last-minute travel.

Dynamic’s client list includes a who’s-who of the oil industry. These customers have come to know the many advantages of flexible charter travel compared with trying to conform to airlines’ rigid rules and schedules.

“You set your own schedule and get to places an airline doesn’t fly,” Toews says of charter travel.

Noel Wallace, Dynamic’s sales consultant, notes that heightened security concerns at airports since the 9/11 terrorist attacks brings home the value of chartering an aircraft for company business.

“People know who’s on the charter airplane with them.

“But most of the appeal is convenience, because you can go out on a day trip, go up into the field, complete your business, hold your meetings and be home that day. Then you’re back in the office the following day.”

Clients have come to love the fact they can show up five minutes before their charter flight takes off.

“Time is money,” says Wallace. “Taking a scheduled flight at the airport terminal, you line up to line up.”

Customers also appreciate the efficiency of chartering flights to multiple destinations.

“If you had four people planning a road trip to five locations around Alberta and Saskatchewan and you had two days to do it, you cannot do that with the airlines,” Wallace says.

“So we would take a group and we would stop in Edmonton, they’d do their meetings and we’d continue on to Grande Prairie, have their meetings. If their meetings went two hours longer we’d re-adjust their schedule.”

That kind of flexibility, combined with a dedicated commitment to service and hospitality, keeps Dynamic’s position in the market strong. The future is rosy for the company, which is why Toews knows the investment offerings will be eagerly snapped up.

“Our purpose is to give the company a little bit better interest rate and give investors an investment that is better than they can get by going to a bank and buying an RRSP. By keeping the bank out of it, we strengthen the company through efficient use of funds.”

For further information, call 403.217.3933, which is a dedicated number for investment inquiries.