THE FINER THINGS
Frequent flyers
Flying in a private jet is the ultimate status symbol, but owning one isn’t the only way to travel. Alison Ebbage considers the practical and cost-effective alternatives
P 80
rivate aviation solves the perennial time shortage issue perfectly and provides a luxe experience to those able to afford it. Today there are more options than ever—ownership, fractional ownership and charter, which in
turn divides into different models too—depending on whether the charter is for the seat or the plane and whether the access is on a subscription or on-demand basis. Deciding which model is the best option can be a hard
decision for the uninitiated and one that should usually be based on how many hours flying time is required, says Shawn Vick, chief executive of Global Jet Capital, a private aircraft financing service. “There are a range of levels of involvement and it is
largely a function of your utilisation as to whether you choose charter, fractional ownership, or full ownership,” Vick says. “There seems to be a natural progression up the
value chain as private air travel solves the pain points of individuals—ultimately planes are time machines where time is saved and a pleasant experience can be had. This is inherently appealing and worth paying for.” But where the market used to be mostly around
ownership, diversity has come to the fore. In the aftermath of the 2008 crisis outright ownership dipped—some jet owners simply parked up their planes or tried to sell them. In the wake of this dip, charter became a more popular model with several business models springing up.
CAMPDENFB.COM
Ultimately planes are time machines where time is saved and a pleasant experience can be had
CHARTER The charter market is worth about
$12.5 billion. Business aviation data provider WingX says almost 70% of flights for the month of December 2018 were charter versus privately owned craft. There are two basic models:
membership where the user pays for a set amount of flights within a membership scheme and the newer, on-demand service, where the user accesses a pay-as-you-go model. Clive Jackson, founder and chief
executive of new investment vehicle Alyssum Group, formerly online business jet charter marketplace Victor, says ultra-wealthy fliers want tailored private travel on-demand. “For that they have tended to own
their own aircraft, but over the past three years, Victor has seen more and more travellers moving away from jet ownership and fractional ownership to charter.” He says that in this turbulent
economic climate, corporates and ultra-wealthy individuals are
ISSUE 75 | 2019
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