09 May 2016

London City Airport reduces charges for private jets

There’s a wide choice of private jet airports in London – 14 in total. But there’s no doubt that London City Airport has the best location – 9 miles from Central London and the City of London, and just 4 miles (or a 10-minute drive), from Canary Wharf.

The airport’s Jet Centre, its dedicated FBO for private jets, is also fast and highly efficient, offering a 90-second turnaround for departing passengers from car to aircraft – and vice versa on arrival.

And landing at London City is also a feast for the eyes – regularly featured in our annual poll of the world’s most scenic landings. The approach offers stunning views of London’s iconic cityscape and a steep final descent over the Thames.

So with all this is recommend it, you might think London City would be the most popular private jet airport in London.

But in fact its activity levels fall far below London Luton, London Farnborough, London Biggin Hill and others (see Europe’s Top 20 private jet airports during 2015). Largely because it is more expensive.

Its landing fees are higher and, with no aircraft based there, a charter price for a departure will usually include the cost of the aircraft positioning in. This makes an average private flight into London City cost around £2,000 more than its rivals.

Cost is a major consideration for today’s private jet customer so this puts a lid on the airport’s demand, despite its very attractive proposition.

But last month, London City’s director of business aviation, Nick Rose, announced that the airport will be dropping its fees for business aviation. He said: “Customers are more conscious of price and value for money and this has led to an increase in traffic for light and midsize aircraft. As a result, London City is able to review its pricing and pass these savings on to customers.” London City say their pricing review will result in £1 million of annual savings for customers.

This follows the news in February of the airport’s £2bn sale – to a consortium led by a major Canadian pension fund (see previous post London City Sees Steep Valuation Climb to £2bn). This led to concerns from some, including British Airways, that the airport’s new owners will put up landing fees to cover the price. But when it comes to business aviation, that’s certainly not the story so far.

Of course, it’s not just price that limits private jet volumes at London City. The airport’s location means it has more limited parking space for aircraft, so availability could become an issue if it were to become much busier. And its steep approach requires special approval for both crew and aircraft.

But it be certainly be interesting to see how this new business aviation pricing strategy impacts London City’s place in the rankings over the next year or two.

Our expert Flight Team can help you compare London airport options and prices. Contact us or call (24 hours) +44 1747 642 777.

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