Three years ago, Chris NowrouziB次元官网网址檚 private charter airline served mainly ultra-wealthy leisure travellers and the upper echelons of the corporate world.
Now, 27 months into a global pandemic that closed borders and battered airlines, his Toronto-based FlyGTA caters to a broader swath of families and groups wary of the health risks and airport hassle of commercial air travel B次元官网网址� and who have cash to spare.
B次元官网网址淎fter the pandemic definitely we saw an increase of numbers all across the board,B次元官网网址� said Nowrouzi, the companyB次元官网网址檚 CEO and co-owner. B次元官网网址淎nd the major increase that weB次元官网网址檝e seen is families.B次元官网网址�
Aiming to more than double its seven-plane fleet over the next few years, FlyGTA is now rolling out service to 20-plus destinations with scheduled charter flights B次元官网网址� nearly half in Florida or the Caribbean. Customers can sign up as a group and jet off to West Palm Beach from Toronto for about $25,000 one-way, taxes and fees included B次元官网网址� or $3,125 per person in a group of eight, the maximum capacity. That compares to Air Canada fares that currently range from $1,260 to $3,620 for the same trip in a business-class seat in July.
Amid scenes of daily frustration at Canadian airports, FlyGTA is part of a swelling sector of fleet operators and producers that hope to transform a COVID-19-era trend toward mile-high comfort into a long-term upswing for private flight.
While carriers have struggled since March 2020, use of business jets rose by 23 per cent in the United States and 53 per cent in Europe last quarter compared with a year earlier, according to the U.S. Federal Aviation Administration and Eurocontrol. Those leaps build on large increases in 2021.
Flight delays and cancellations, wariness of potential COVID exposure and surging wealth among the ultra-rich B次元官网网址� the worldB次元官网网址檚 2,755 billionaires saw their combined wealth rise by US$5 trillion since March 2021, a January report from Oxfam International says B次元官网网址� have helped drive demand for private aircraft.
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The taste for luxury has seen buyers snap up used business jets as well, leaving the total number for sale at 3.1 per cent of the worldwide fleet as of late February, its lowest level in more than 25 years, according to market data firm Jetnet IQ B次元官网网址� and making new products a likelier option, which bodes well for private plane makers like Bombardier Inc.
The Montreal-based company increased its backlog of business aircraft orders by 11 per cent to US$13.5 billion in its first quarter. The B次元官网网址渟trong bookingsB次元官网网址� reflect B次元官网网址渃ontinued strengthening in the private jet market coming out of the pandemic with activity levels now exceeding 2019,B次元官网网址� ATB Capital Markets analyst Chris Murray said in a note to clients last month.
Meanwhile airlines captured just 80 per cent of premium travel last year, down from 90 per cent before the pandemic, according to Alton Aviation Consultancy managing director Umang Gupta, indicating private travel now accounts for a larger slice of the market.
B次元官网网址淚tB次元官网网址檚 a very niche market. But the niche seems to be creeping down the income scales, where you have a lot more options today,B次元官网网址� said John Gradek, head of McGill UniversityB次元官网网址檚 aviation management program.
B次元官网网址淚f youB次元官网网址檙e booking a seat from Toronto to Vancouver on Air Canada on business class, and itB次元官网网址檚 $3,000 or $4,000, you get six or seven of your buddies together to fly and itB次元官网网址檚 cheaper to fly on a private jet than it is on a commercial airliner.B次元官网网址�
The growing array of purchase options includes charter, B次元官网网址渏et cardB次元官网网址� loyalty-style programs, full ownership and B次元官网网址渇ractional ownership.B次元官网网址�
Charter flights involve hiring a plane and crew for a custom trip. Jet card programs, which function like a premium charter membership, see customers pay in advance for the privilege of a fixed hourly rate and guaranteed availability, with dozens of companies serving North America.
Full ownership refers to an outright plane purchase by a corporation or individual. And fractional ownership means buying a share of a plane under a multi-year deal that covers costs like crew wages and maintenance, on top of an hourly rate for time on board.
Companies such as Calgary-based AirSprint, Mississauga, Ont.-based Jet-Share and HondaJetB次元官网网址檚 newly formed Jet It Canada all sell fractional ownership.
In 2020, the relatively affordable fractional and charter flights made up an unprecedented majority of private flight hours in North America, overtaking full ownership, according to an Argus International business aviation report.
Meanwhile, total business jet flight activity surged past 2020 levels by 41 per cent last year and topped pre-pandemic levels by 7.2 per cent.
As well as accessibility, health concerns remain top of mind for many amid the pandemic. B次元官网网址淲e are hearing that some (corporate) boards are asking their directors to fly private for health reasons,B次元官网网址� said Helane Becker, an analyst for banking firm Cowen.
Then thereB次元官网网址檚 the pure convenience and B次元官网网址� alluring decadence B次元官网网址� of private flight.
B次元官网网址淭here is no wait time to get on the aircraft,B次元官网网址� said Nowrouzi. B次元官网网址淵our passports are checked and you get right on the aircraft and you depart.
B次元官网网址淥n your arrival, customs agents come out to the aircraft,B次元官网网址� he added, building a case for the revival of air travelB次元官网网址檚 bygone glamour.
B次元官网网址淏ack in the B次元官网网址�70s, when commercial flying was new, people would fly for the experience and the destination. But somewhere along the way the experience kind of went away.B次元官网网址�
Even the old-fashioned route of buying a jet outright is more feasible for corporations, leasing companies and the odd individual, with the list price for new HondaJet and Cessna jets starting between US$3 million and US$4 million.
B次元官网网址淭hose airplanes will fly Montreal-Miami nonstop,B次元官网网址� Gradek said.
A couple of clouds mark the horizon.
One is the price of jet fuel, which is poised to remain high this year in lockstep with oil costs.
B次元官网网址淎nd then thereB次元官网网址檚 the Greta Thunberg factorB次元官网网址� B次元官网网址� a growing awareness of aviationB次元官网网址檚 carbon footprint and the attendant B次元官网网址渇lygskam,B次元官网网址� Swedish for flight shame, which pressures would-be flyers to think twice about heading skyward B次元官网网址� Gradek said.
But with the pandemic and airport chaos raging, going private may seem all the easier to rationalize, said former Air Canada chief operating officer Duncan Dee.
B次元官网网址淔or folks that can afford it B次元官网网址� high net worth individuals and corporate clients B次元官网网址� that becomes an alternative that is much more justifiable.B次元官网网址�
Companies in this story: (TSX:BBD.B)
Christopher Reynolds, The Canadian Press
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