People who buy private jets do so either because they use one enough to justify buying or leasing instead of chartering (usually more than 250 hours of travel a year), they need the security of ownership (secure hangar, properly vetted staff, reduced risk of espionage), or because they want the prestige of ownership (their own colors/décor, nobody else sitting in their seats, etc.). The costs of purchasing, maintaining and operating these aircraft can range from $500K to $8M a year, depending on purchase price and how it was financed, how much it flies, how old it is, and its cabin size and range. People, companies and government entities are going to buy planes—and the reasons for that are not likely to change much.
What is changing, however, is the barrier to entry of using private jets. Travelers today have several different options that don’t involve full ownership. Chartered flights have been available for a long time—and buyers can shop rates and available aircraft online now more than ever. Charter prices and experiences can be inconsistent, because there are so many varying factors. Fractional ownership has had its benefits, and jet cards became popular a while ago. Both of these options provide a more contiguous experience for the flyer.
Today, we are seeing the growing popularity of a membership model, with the obvious frontrunner being Wheels Up. This works a little like a country club membership with both dues and usage fees. If someone doesn’t fly a lot—or doesn’t want that big of a commitment—this can be a compelling option.
The trend that will most likely revolutionize the ability of the above-average-wealth individual or family flying privately is “ride-sharing.” While there are federal aviation regulations against selling a “seat” on a private flight, the genius that comes up with a way for this kind of collaboration is going to revolutionize the industry. For example, nobody wants to pay $20,000-$40,000 for a charter for just one person to fly from Austin to D.C. for a conference, but if several other business people who have a similar schedule could share the cost, it would be well worth it—no security lines, no general boarding, no lost or mistreated luggage and a car waiting upon arrival. This is the trend of the future.
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