Demand for Private Jets Soars
Boeing, Bombardier, and Other Jet Makers Stand to Benefit
With demand surging for corporate planes, jet makers from Bombardier (BDRBF) to Boeing (BA) are poised to announce a substantial amount of new orders at the industry’s biggest trade show which is taking place today. The demand for private jets is so red-hot that some fractional plane ownership and plane charter companies have been turning away business.
To get the situation under control ahead of the busy holiday travel season, charter plane operators and fractional ownership companies are investing in more planes, creating a boon for companies which make small passenger planes.
NetJets Invests $2.5 Billion in Planes
NetJets, a large global private jet company, is spending $2.5 billion to purchase 100 new aircraft, with deliveries beginning now and lasting through the end of next year. Demand for NetJets’ services is at an all-time high, with the company flying about 500 flights per day compared to fewer than 400 in 2019.
NetJets has faced significant difficulties dealing with the spike in demand. In response to surging demand, the company has already halted sales of cards which enable customers to pre-pay for flight hours. These trends are having ripple effects across the airline industry supply chain. Fly Exclusive, which supplies the charter industry with planes, is also seeing a huge uptick in requests from customers which are running low on jets.
Customer Service Headaches
The shortage of private jets is also creating a customer service nightmare for the charter and fractional share companies. Wealthy travelers used to getting a plane whenever they want it are growing frustrated when planes are not available. Meanwhile, due to low inventory of planes, the plane companies have less flexibility to deal with last-minute cancelations or delays when clients get stuck.
In the late stages of the pandemic, even very wealthy travelers are dealing with travel difficulties. It will be interesting to watch how private jet companies respond to these trends.
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