Will Travelers Who Can Afford It Shift To Charter?

There has been no shortage of airline travel horror stories in the news lately, with both passengers and airlines behaving badly. “Well-heeled travelers have the choice to skip the experience altogether and fly privately, but at a cost premium,” explains aviation analyst Brian Foley. “The question is whether these high profile incidents will be enough to cause an exodus to private aviation.”

General aviation proponents have pointed out the benefits of flying privately for years, with arguments typically focusing around convenience, privacy and time savings. Concurrently, the commercial flying misery index has continuously risen. “Private flyers don’t have to remove their shoes and belts, and the plane waits for them before departing.”

However, those benefits require a financial premium. One has to weigh the $350 roundtrip airline ticket against a private flight that can easily run 5-figures. For some that’s not an issue and they can see the value. Others may still consider it an extravagance. “Flying privately is a discretionary spend as there are cheaper public alternatives. But given adequate resources and confidence in the future some choose to skip the lines.”

The general aviation industry has been reinventing itself to make private flying available to more people. At one time the only way to fly privately was to buy, staff and maintain a multi-million dollar business aircraft. Today there are new business models that allow the client to experience flying privately without the prohibitive cash outlay. Examples include charter, fractional ownership and membership models. “These providers all cater to a specific niche yet fill the same market need which is to allow one to experience private aviation without committing to an outright aircraft purchase.”

“In my view the recent rash of airline/passenger incidents won’t result in a big flood of business for private aviation, but it does strengthen the overall business proposition. It will cause a few to explore their options and leave the airlines, and support the decision made by those who already use private aviation. In any event, the airlines have become business aviation’s 24/7 salesforce.”

(Source: Brian Foley Associates news release. Image from file)

FMI: www.brifo.com