Private Jet Services Are Facing Identity Crisis

October 8, 2019

Just like a private jet, there is no symbol of luxury.

Passengers do not need to line up and have all the troubles associated with business travel. Flight schedules are tailored to the passenger’s schedule, so there is no need to deal with other passengers.

However, there is also a question about the ethics and longevity of private aviation in terms of increasing focus on cost transparency and the impact of aircraft on the environment.

Despite this, the private aviation market seems to be growing. As we reported in 2018, the shift in ownership from ownership to priority is driving the traditional luxury market, including private aviation. With the healthy development of the economy and the constant search for outdated markets that need to be interrupted, the time to travel on the company’s aircraft on demand is ripe.

The democratization of private aviation begins with the introduction and development of new networks, platforms and services that enable private aircraft or at least one shared seat (through partial ownership or the ability to sell open seats).

On-demand or shared economy drives system efficiency. This means greater accessibility at lower price thresholds, which allows private flights to be used in a wider market segment.

The private aviation market has matured for some time, but now we are seeing the integration of brands that bet on technology on the one hand, and efforts to distinguish it from personalization and physical assets on the other.

Service first
Is private aviation a transaction or an experience? Is its value measured by the way customers are served or by how easy they are to book and ensure the last flight? In a strong economy, traditional and new players are looking for a way to differentiate themselves from their growing customer base.

Recently celebrated its 20th anniversary, Jet Linx is one of the more mature companies on the market. Aircraft card members and private aircraft management companies have 18 private terminals in the United States. Jet Linx CEO Jamie Walker said the private terminals are the company’s unique sales proposition.

Walker said: “When we researched the business 20 years ago, we quickly discovered the missing aspects of the customer service experience. Although the company did a great job in the leap from A to B, no company actually localized this. Experience and provide customers with any form of service to enhance this customer experience.”

Most passengers using private jets pass through fixed carriers, and their halls are filled with different customers using different operators. “Private terminals are indeed our stage,” Walker said. “It not only provided us with a private environment for production experience, but also provided accommodation for our local team. When our New York customers called our New York team members, they called the team members in the private terminal. ”

While technology may play a huge role in changing the private aircraft experience as well as access and booking, Walker said customer service is still an integral part of any luxury travel experience.

“The foundation of our business is built on relationships. When our customers take advantage of the technology we have, we have more time to serve our customers.”

In other words, high technology must also be part of the growth equation, especially to attract young customers. Following the trend of pay-per-hour charges (such as la Uber), Jet Linx launched a countermeasure in July – a new flight sharing program called OpenSeat Exchange. The company counted 40,000 empty seats on the Jet Linx flight in 2018, which made the new product a victory for the company, which now has a new source of revenue due to previous supply shortages.

Walker and other luxury leaders are still learning how to strike a balance between technology impact, service and communication. “I do think that in the next year, three years, five years or even ten years, the technology and the speed of this technology will make the greatest contribution to customer growth. Technology is the pillar of our industry development. This is not only from consumers. The perspective is also from the perspective of the operator.”

Competition and consolidation
The goal of many private aviation providers is to disrupt the previous framework and invite more people to take private jets while maintaining a sense of uniqueness and service. These companies want private airlines to be more convenient and efficient. As competition intensifies, some companies find that acquiring smart technology is the fastest way to innovate.

Vista Global enters the private aviation market through a pay-per-hour program similar to NetJets.

In April 2019, VistaGlobal acquired JetSmarter, which was in a legal dispute. JetSmarter was developed to allow users to book private jets from mobile apps.