A Look at the Business of Private Jet Charter

In the 1950s airline travel was deemed a luxury asjobs and wealth created from pilots and flight
very few people traveled overseas. Travel by aircraftattendants through to airport staff, engineers, insurers,
was expensive and the operations set up to servicecleaners and catering suppliers. There are private jet
the needs of those that did utilize this new method oftravelers who may spend £20k a year on flying
transport, didn't enjoy the economies of scale the likesprivate charter, and there are those who spend millions.
of British Airways and Lufthansa enjoy today. AircraftWhat we have to consider is that all of this money
were subject to weight limitations and thus in manygoes back into the economy which is more that can
cases, luggage was sent independently on anotherbe said for the £billions used in taxpayer bailouts
aircraft, ahead of the passengers. Waiting staff wereof the banks.
included on these early airline flights to ensure that theThen there are the environmental factors. Of course
service was similar to that experienced on the luxurythis is a huge concern because of the irreversible
liners of the day. Some aircraft even carriednature of these effects. Many firms however, have
projectors to show in flight entertainment.embarked on initiatives to offset their carbon impact. I
These days technology has opened up this businessam personally not a great fan of the schemes that
to the masses and much of the developed worlddonate a percentage to a fund that doesn't appear to
would consider air travel as the primary solution indo much environmental work, but there are some that
traveling overseas. These increased volumes haveplant trees for every X amount of air miles flown. We
reached the stage whereby the business has becomealso have to consider the massive increase in fuel
a victim of its own success. Airports are full toefficiencies that aero engine designers now make a
capacity, security queues are lengthy and tedious andpriority in all of their research work. Private Jets are
competition is such that airlines no longer look at settingsubject to much less delay than their airline
themselves apart on service. They are settingcounterparts and so, generally speaking, contribute
themselves apart on cost, and in doing so are reducingsignificantly less environmental impact.
the level of service. This has almost certainly fueledEssentially this is a market that is set to grow as the
increased demand in the air charter market. Thosemainstream airline services continue to chase cost
travelers lucky enough to have the resource to travelcuts and deal with passenger numbers increasing at a
by private jet do so for one or all of the followingfaster rate than the infrastructure can cope with.
reasons:Bombardier in collaboration with GAMA (General
1. They don't waste precious time checking in 2 to 3Aviation Manufacturers Association) forecast that
hours before a flight departs.over the next 10 years there will be demand for 9950
2. Departure time is dictated by the passenger, not byaircraft at a total revenue of $228 billion. This is up
the aircraft operator.from $104 billion in the previous 10 years. Bombardier's
3. Smaller airports can be used by Private Jets, thusclosest rival Gulfstream had an unprecedented
there is less congestion at these facilities.response to its G650 launch with 100 firm orders
4. Travelers can take an aircraft from airports closerreceived within three months.
to home, and arrive at airports closer to their intendedThese firm orders to date now stand at 200. In
destination.addition to the firm orders, JP Morgan analysts confirm
5. The on board service is tailored to the needs of thethat Gulfstream have a further 400 letters of intent to
passengers.date. Such success has led Bombardier CEO, Pierre
6. Business passengers are often subjected to strictBeaudoin, to announce their intentions to develop a
meeting timetables. Private jets can exercise moreflagship aircraft with 7000 nautical mile range. Even in
flexibility in terms of timings and destinations, thus a 3the midst of the downturn, it is evident from aircraft
day trip on a scheduled airline could be squeezed intoshipment data that the Private Jet market is displaying
a one day trip on business jet.resilience. In the first 3 quarters of 2009, 615 business
7. Celebrity passengers can retain an element ofjets have been shipped globally with Bombardier
privacy away from the prying eyes of the paparazzi.leading the revenue figures at $3.95 billion.
8. Many private jets now have Wi-Fi facility on boardWhilst there are movie stars who need to attend a
as well as telephone equipment. Thus even time in thefilm launch tour, pop stars with concerts in different
air can be productive which is useful if embarking on acities every night, and business men that need to
7 hour flight from London to New York.undertake meetings in the same day, thousands of
In essence the majority find it obscene that individualsmiles apart, then there will always be demand for
can justify so much expense by flying on Private JetsPrivate air charter. Maybe the increase in numbers
or helicopters. There is no doubting that it is expensiveutilizing private jets will give rise to more opportunity,
but where there is a market for such a service, shouldgreater accessibility and increased competition for
it be mocked? If we take a step back to look at thefuture private travelers.