5 Reasons to Invest in Private Flights during COVID19
1. The Demand is High.
Recent studies conducted at the beginning of the pandemic show on average there were 40% more inquiries about flying privately amongst 14 companies surveyed. Coupled with a 70% increase in chartered flights tells us one thing. People need this service, and they are willing to pay a higher price for it. This increase in demand is good and bad, many charters cannot keep up with the demand. Chartering an entire aircraft for a few people is not only time consuming but takes a larger fleet of aircraft to meet all of the client’s requirements. This creates a window of opportunity for smaller companies to back fill and gain new clients and therefor, growing the industry for the future.
2. Safety is a Selling Point.
On a commercial flight there is an average of 900 touch points. That equates to about 900 possibilities of contracting Covid-19 on a single flight. Consider that you are stuffed into an aircraft with a few hundred strangers and a couple thousand more at the baggage claim, you run a major risk. Flying private has on average 30 touch points, no baggage claim and by nature forces you to social distance. Consumers understand this has become and will continue to be a selling point for the private aviation industry. With less aircraft and more focus on customer experience. Charter companies can maintain a standard of sanitizing and cleanliness that is impossible for commercial airlines.
3. Lower Prices, More Repeat Clients.
The spike in inquiries and bookings to travel privately has offered companies like Russell Aviation to bring down the bottom line on flights. Fuel has hit record lows and offering new clients the ability to fly home at a price that is affordable, while still maintaining the same profit margins. Gains new customers who may never return to commercial air travel after experiencing the luxury of private air travel. This strategy is bringing new clients into the world of private aviation in droves and current projections show this is not stopping anytime soon.
4. Projections for the Future.
Private air charters are expected to grow to a 6.38 billion dollar industry over the next 10 years. With companies such as Honeywell and Gulfstream increasing production due to demand for mid-size business jets. The industry is poised for exponential growth. As the CEO of Russell Aviation my phone rings multiple times a day from travel agencies looking to begin booking flights for their clients. The private aviation industry is seeing an increase and for investors this is an opportunity to cash in on one of the few growing industries during this pandemic.
5. Pilot Shortage, No More.
For nearing a decade pilots have been a sought-after force in the aviation community. The need for specialized skills and certification that a select few hold, has been crippling airlines and private charter companies for years. The recent downsizing of airlines has offered the private aviation community the opportunity to cash in on the expertise of these seasoned pilots. Maintaining a fleet ready to service clients at a moment’s notice while having top notch pilots to operate these aircraft. This gives private aviation companies the ability to grow their fleets and operate more effectively. Further growing the industry for a highly profitable investment opportunity.