Business aviation executives say private jet rentals and jet memberships will lead the industry’s recovery
During a Corporate Jet Investor webinar business aviation executives were extremely bullish on one segment. Charters of private jets on-demand or via jet cards and memberships will be at the leading edge of the recovery, they said.
I’m not getting back on a commercial aircraft until they get a vaccine– Brad Harris, Dallas Jet
“The charter market will be very strong,” said Steve Fasano, CEO of The Jet Business.
He said the wealthy who had eschewed private flights until now won’t necessarily buy their own airplane right away.
Adding they won’t want to “breath recirculated air” flying on a packed airliner, jet cards and one-off charters will be the first place they go.
Brad Harris of Dallas Jet said five former customers contacted him in the last week. He said the refrain was the same: “I’m not getting back on a commercial aircraft until they get a vaccine.”
UHNW, Private Companies lead private jet demand
Mente Group’s Brian Proctor said he believes most of the new demand will come from UHNWs and private companies.
He said large companies taking government subsidies and laying off workers will need to walk a narrow line.
While reduced airline service for the foreseeable will make business travel more difficult, he said the optics of private jet travel will be difficult.
“On the private side (of business ownership), if you have the means and capacity, there will be a large movement from public to private transportation,” Proctor predicted.
“Charter jet cards and fractional (ownership) will benefit,” he said.
He said clients see the current situation more akin to 9-11 than the Great Recession.
After the 2007-2009 period, private aviation suffered due to the downturn. After the terrorist attacks, private jet travel got a boost. Those who could afford it believed personal safety trumped extra expense.
Proctor said he had three customers pull their aircraft off the market. “I’m not sitting next to 40, 80 people on a plane coughing,” one told him.