Fractional ownership initiatives allow buyers to acquire a fraction of a business jet, paying a monthly fee for management, then flight fees per hour of use. Some companies offer pay-in-advance schemes where the customer can purchase bulk flying time.
For the past five years, there has been a lull in this industry; the economic downturn is partly to blame, with expenses cutbacks and falling rates of business. This had led to many fractional ownership companies going out of business, with some being bought out, such as the proposed acquisition of Bombardier’s Flexjet by Directional Aviation Capital who already own Flight Options and Sentient Jet, fractional ownership enterprises.
It is hoped, now that there are fewer players in the industry, that prices can become more competitive, with greater flexibility for new growth in this sector.
Executive Airshare is keeping its focus upon the light jet market, which is less capital-intensive, offering businesses a more affordable way of flight compared to that of larger jets.
Already there seems to have been a resurgence of business with some companies noticing a rise of up to 50% on last year’s figures. Many believe that this is a clear indication that people are returning to ‘normal’ business activity.
It may also be an indication that businesses are prepared to go a little further in search of new contracts and to seek out new business opportunities.
Recently it was suggested that it can be more cost-effective for companies to share the hire of a business jet than to purchase individual seats on commercial flights.
Whatever is happening, it is clearly good for business in the sector.