Thanks to new technology, flying in a private jet is no longer just for business titans and the superwealthy.
But in a paradox, that means aircraft manufacturers like Cessna and Bombardier are selling fewer planes.
The general aviation industry is undergoing a major shakeup as new business models attempt to match idle aircraft with passengers, many of whom now can’t afford their own plane. Membership companies, ride-sharing programs, on-demand charter providers and startups claiming to be the Uber of private aviation are all looking to introduce more people to the convenience of flying without the hassle of commercial airports.
“Unfortunately for airplane manufacturers, these new programs aren’t out buying a lot of new jets,” said Brian Foley, a business-aircraft consultant who spent 20 years as director of marketing for the North American jet unit of France’s Dassault Aviation. “They’re just trying to use existing assets out there and get more utilization out of those parked airplanes.”
JPMorgan Chase.
Those declines contrast with an increase of more than 5 percent for flight hours for the charter market in the October-to-September period for the past three years, according to Argus International.
The increase in charter activity is partly because of the new options that have opened up the market beyond superwealthy customers, said Brad Stewart, chief executive officer of XOJet, which operates a fleet of 41 preowned aircraft for hire.
“The democratization of private aviation is a huge theme, and it’s here to stay,” he said.
Article source: http://www.chicagotribune.com/business/ct-private-jet-ride-sharing-20161031-story.html