Experiential luxury trends, privacy desires, and spotty airline service are powering NetJets its President Patrick Gallagher tells Fortune TV.
Private aviation leader NetJets is maintaining its post-Covid momentum, benefiting from several ongoing trends.
In an interview with Fortune TV, NetJets Aviation President Patrick Gallagher said that experiential luxury, the desire for privacy, and spotty airline service continue to provide a “tailwind” for the unit of Berkshire Hathaway.
Gallagher says following record demand in 2021 and 2022 for the industry, NetJets has maintained its growth trend.
Including its aircraft management arm, Executive Jet Management, the company operates around 1,100 private jets.
Gallagher pointed out that it would rank it among the biggest airlines in the world.
Per FlightRadar, only American Airlines, United Airlines, and Delta Air Lines have larger fleets.
However, airline moves to target premium passengers haven’t impacted demand for private aviation, according to Gallagher.
He tells Fortune TV, “The commercial experience has not gotten any better over the last several years, and that has driven more people to want to fly NetJets.”
He adds that the top private aviation company, ranked by charter and fractional hours, is building on the increases from the Covid period.
Gallagher says that before Covid, only about 10% of affluent consumers who fit the private aviation financial profile flew privately.
NetJets’ customer base today is 40 to 45% larger than it was in 2019, before the pandemic.
While some providers say newcomers have left, Gallagher says NetJets has “maintained record retention.”
91.7% of Private Jet Card Comparisons subscribers ranked NetJets Excellent/Very Good in last year’s survey.
The industry average for Excellent/Very Good ratings across all fractional and jet card providers was 73.3%.
The same survey shows over 95% of flyers who started flying during or since Covid continue to fly the private skies.
In a post-pandemic era, Gallagher says new trends are powering the company.
“In the luxury travel segment overall, people are making more of an investment in experiences than in things. That certainly has been a tailwind for us,” he says.
Flight trackers and the desire for privacy are also driving the growth of its fractional ownership model.
“One of the appeals of flying NetJets as opposed to owning your own airplane is you are virtually untraceable,” Gallagher says.
It is also maintaining its position in the world of big business.
Gallagher says about 40% of Fortune 500 companies are customers.
However, its primary audience is principals of privately held companies.
Gallagher also addressed the sustainability issue of flying privately, which is often used as a cudgel by anti-wealth campaigners.
“Sustainability is at the forefront of our industry,” Gallagher says.
For NetJets, it offsets all of its internal and training flights.
It is also the largest buyer of sustainable aviation fuel in the private aviation sector, according to the executive.
Additionally, it offers a program that allows customers to purchase offsets for their flights.
According to CH-Aviation, NetJets has the youngest fleet among large operators.
You can see the entire interview here.
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