Flights of FANCY

Use of private jets is perceived as too costly for many corporates, but operators argue their efficiencies can pay dividends, says Benjamin Coren

Private jet travel may not seem a viable option for many businesses, but depending on who is travelling and to where, joining the jet-set can prove a practical solution.

The seemingly exclusive sector is not aided by the multitude of business models out there – even before costs are quoted – but the sector's conveniences are clear.

Private jets provide a seamless means of getting from A to B with no check-in queues for passengers and no waiting in line to pass through security, helping save that most precious of commodities – time. And for businesses that need to reach specific destinations not served by existing air or rail routes, a private jet is the ideal solution. They are also effective for companies with groups of employees travelling together.

Travel management company The Appointment Group (TAG) counts musicians, film production crews, sports teams and VIPS among its clients – a discerning portfolio that appreciate the privacy of private jets.

“Artists find that the nature of using private jets and using General Aviation Terminals (GAT) – rather than public terminals – allows them to travel without the hassle of fans, media and the general public,” says John Gianquitto, TAG Joint Chairman and CEO.

“In addition, an artist may have back-toback shows in different cities where the commercial carrier departures and arrivals may be too late to facilitate.”

He continues: “And for corporate clients where time is their most valuable commodity, using a private jet may allow them to facilitate multiple meetings in a day, so in the long run it becomes extremely financially viable.”

Model behaviour

Private jets is an all-encompassing term that comprises various business and user models. Jet ownership provides the ultimate convenience of operating at short notice but this pricey option is only worth it if travellers are flying 400 hours or more a year.

Fractional jet ownership still requires a large commitment and allows users to buy a number of flight hours in an aircraft, but owners will have to commit to a contract which is normally around two or three years.

Jet card options require similar payment in advance for a fixed number of flying hours although there is a large initial cost and members are bound to these hours.

Empty legs are the least flexible option but can offer excellent value for money, with jet operators selling off seats on flights that are repositioning. Finally, ad hoc charters are a flexible pay-as-you-go option and suitable for short notice assignments.

One innovative new operator is Surf Air. Based in California, it flies between 12 destinations around the state and has now brought its ‘all you can fly’ subscription model to Europe. For a monthly fee of as little as £1,750, members can take unlimited flights on small, private jets around Europe. Passengers are subject to specific flight times and, for now, the network comprises only services between London City and Zurich.

Healthy prospects

The private jet industry is buoyant currently, which would suggest that for all its costly associations, companies and wealthy individuals are sold on its benefits.

Vistajet, which has a fleet of over 70 aircraft and offers jet hire with as little a 24 hours notice, announced record results in the third

quarter of 2017. Its Program Membership flights – for those who fly on a regular basis – were up 38% year-over-year and there was a 32% increase in new flight hours flown.

Globeair, meanwhile, logged more flights in Q3 2017 than it has done during the same period in its ten-year history. The UK market accounted for 299 of Globeair’s departures, a rise of 33% on last year.

A rise in fees on private jets announced by Chancellor Philip Hammond last autumn looks set to have minimal impact on the sector. Jonny Nicol, Founder and CEO of Stratajet, a tool allowing customers to search, compare and book a range of private jets, says: “When considered at a granular level, the increase of £47 for those travelling by private jet is minimal as a percentage of costs.”

While online search and booking tools are creeping into the sector, some believe that private jets are not a commodity ideally suited to online transactions.

Global Travel Management (GTM) launched its own private jets offering after receiving increasingly more enquiries from clients but does not offer an online booking tool.

“There are companies that are increasingly offering this but we have no plans to take away the personalised service we offer,” says Scott Pawley, Managing Director at GTM and its Global Travel Jets subsidiary.

Cost comparisons

While private jet use can seem expensive, there are times when they present an economical solution in addition to the timesaving and privacy benefits.

A spokesperson for Bmi Regional, which operates a private jet division – albeit larger capacity aircraft – says: “With the jets available to hire from £15,000 per day, this can work out as little as £300 per person for a return flight if all seats are filled.”

But even smaller groups can gain an economic advantage. Time spent queueing at airports can translate into considerable costs for senior executives on high hourly rates.

And as jet charter company Monarch Air Group says: “Every year, an increasing number of companies rely on the services of business aviation. Small to mid-sized companies are choosing to fly their products with private charters, not just seeking a faster and more reliable service, but because commercial airlines have reduced or eliminated their reach to certain towns and cities, thus granting private aviation with the opportunity to cover the routes.”

For corporate clients where time is precious, using a private jet may allow them to facilitate multiple meetings in a day ”