23 March 2015

Rivalry at city private jet airports

The private jet customer travelling to a major city will often have a choice between airports – sometimes a wide choice. How to choose which one is best for them comes down to a number of factors, including the following:

Location is almost always top of the list. Time saving is the key reason most people travel by private jet, so landing at an airport that is closest (or quickest – not always the same) to their ground destination is a priority.

The airport’s opening hours will also come into play for some customers. If they want to land late in the evening, or take off again early in the morning, some airports will be closed, while others are open 24 hours.

Then there are the runway capabilities. Some airports can accommodate all sizes and types of private aircraft, while others have shorter runways which can only handle aircraft up to a specific size.

Sometimes slot availability will also be a factor, particularly in busy periods. The customer will choose the airport which can best accommodate their preferred timings.

Or they may have specific needs which are best served by a particular airport – for example those travelling by private jet with pets or for medical evacuation flights. Or they may just prefer the services offered by a particular FBO.

All of this means that there can be a strong sense of competition between airports serving the same city area. Recently we wrote about the growth of the new Dubai World Central Airport, versus the Dubai International Airport (see Dubai’s Bizav Flights To Relocate To New Airport).

And in London, there is a huge choice of airports (14 in total) which means there can often be a sense of fierce competition. London Northolt is currently being targeted by some of its competitors, who feel its military status gives it an unfair commercial advantage. See Will The Queen’s Favourite Airport Survive A Regulatory Review?

Currently there’s some interesting airport rivalry playing out in Melbourne, Australia. Earlier in the year we wrote about the ambitious $30m plans for a new private terminal at Melbourne International Airport. Owner Paul Little wants to lure the Asian private jet customer across from Sydney, by offering state-of-the-art facilities at ‘the best FBO in Australia’ (see New Private Jet FBOs: It’s All About Location). Work is due to begin later this year.

But it isn’t only Sydney keeping an eye on Mr Little’s plans. The current preferred business aviation airport for Melbourne is local rival Melbourne Essendon Airport. After being ousted in 1970 by the newly-built International Airport as the city’s main airline hub, it has become the established choice for private jet customers.

So this week Essendon announced plans for a $20m investment project of its own – looking to shore up its leading position in business aviation in Melbourne. The project will improve its offering for private jet customers and includes two new hangars and a runway overlay.

Essendon Airport’s CEO Chris Cowan says Essendon’s exclusivity for private jets makes it a stronger proposition than Paul Little’s plans at the International Airport – even once the rival airport has a dedicated FBO: “He’s running a hangar and a facility that will service jets,” says Cowan. “We’re running a whole airport”.

Essendon is 6km closer to the city centre than the International Airport and offers more space for private jets. Its quieter runway also means that private jet customers can have a better choice of slots and less congestion both in the air and on the ground.

But the International Airport highlights its 24 hour access (Essendon is in a residential area and closed 23.00 – 06.00 hrs) and ability to handle heavy jets of all types. Essendon’s runway currently restricts jets weighing over 45,000 tonnes which means it can handle long range jets such as Gulfstreams, but not very large jets or converted VIP airliners, such as the Boeing Business Jet. But its runway overlay project will extend its capabilities.

Fascinating to see this rivalry playing out. Whichever way it goes, this is great news for Melbourne and hopefully both airports will see a successful return on their investments. The growth of business aviation in China means the city is poised to see significant, increased demand over the next decade.

If you are unsure which city airport to choose for your destination, our Flight Team can help. Contact us or call (24 hours) +44 1747 642 777.

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