19 August 2015

Trend-swapping: Private jets and airlines

The private jet and airline industries cross over more than you might think, and it’s interesting to look at how both sectors are adopting trends from the other. Delta Air Lines for example, recently added a private jet upgrade for its top tier customers, who will be offered a private jet transfer option on selected routes.

However, it’s not the first scheduled airline to align itself with a private jet company. In fact, the gap between flying by airline versus by private jet is closing in a number of ways, with innovations on both sides taking cues from learnings in the other.

Typically, it’s often viewed that there are two types of airline travel: those that could afford to fly by private jet, and everyone else. And if you could afford to fly by private jet, that would be the only way you would choose to fly.

But the truth is more blended than that. First of all, private jet charter is often less expensive than you might assume, with a wide range of people choosing private air travel – not just the 1%. Additionally, many private jet passengers also fly commercially, such as when the schedule makes sense or when combining a long-haul commercial flight with a shorter private jet flight transfer.

But as we begin to see scheduled airlines merge with private jets, and private jet companies opening up and becoming more like airlines – we wonder, what does this mean for passengers? Will this allow more people the opportunity to fly by private jet, that might not previously been able to afford to. Will we see more transitions and alliances between private and commercial aviation?

We’ve decided to dive deeper into some of the recent trends in both sectors, and see what exactly it means for the future of air travel.

FIRST CLASS LUXURY APARTMENTS

The first step in commercial airliners offering the private jet experience is the airlines that are beginning to offer ultra-luxurious spaces exclusively for their first class passengers. A recent example of this comes from Etihad Airlines, whose A380 Airbus will include a “residence” option – aka a hotel room within the aircraft – which includes a double bed, shower cubicle, separate seating area, and a personal butler.

This type of luxurious air space is a step up from the interior of most small to medium-sized jets, however at what cost? This depends on your definition of luxury. Currently running at $20,000 for a one way flight, that price tag can quickly add up. Plus, these passengers cannot set their own schedule or routing, and may still have check-in and security delays, alongside everyone else – both situations that wouldn’t happen when flying by private jet.

See more about how this“ultra first class” compares to private jet travel here.

UPGRADE TO A PRIVATE JET

Similar to what Delta recently announced, this type of service allows other elite airline passengers the chance to upgrade from first-class to private jet.

Here’s how it would work: say you’re scheduled to fly from London to Dubai at the same time an empty private jet is also headed to Dubai. You would be notified at least 24 hours ahead of travel time, offering a private jet upgrade (either for free or a fee, depending on the program). You would then have until 6:00 the evening before the departure to accept.

This upgrade shows how airlines are broadening their customer offering to drive loyalty with their Elite passengers. This ‘upgrade’ not only allows passengers the opportunity the private jet experience without the private jet cost, but it also allows other private jet benefits such as privacy and skipping airport lines. However, the matching of the empty leg being available for the same time as the flight you’re taking that day, will prove to be challenging.

Learn more about how empty legs work here.

AIRLINE & PRIVATE JET PARTNERSHIP

The middle ground between private jet and scheduled airline travel is when a partnership between the two are formed.

A few airlines have created new partnerships with a private jet operator, which allows passengers from long-haul flights the chance to connect to a similar city by private jet. This allows a commercial airline to broaden its offering with more locations available for passengers to choose from, such as areas not served by a major airport.

However, there typically are restrictions with this kind of partnership including only certain types of sizes and aircraft being available, which might make it more costly than booking the private jet independently. Also only certain long-haul flights are eligible for this option and you have to fly in or out of one specific airport of their choosing, which eliminates some of the flexibility.

PRIVATE JET SEAT SHARING

This type of service is an experimentation in private jets trying to be behave like scheduled airlines. Private jet seat sharing aims to offer passengers the ability to book a single seat on a shared private jet, rather than charter the whole aircraft for a trip.

However, many business models have struggled with this, and there are quite a few drawbacks and commercial restrictions to offering this type of service. While you do have the luxury of flying by private aviation, you’re still flying with strangers, and sometimes in closer quarters than you might be on a airline flight (depending on the aircraft you’re flying on).

Additionally, your route and timing is restricted to the other passengers you’re sharing your flight with. When you book a private jet for yourself and your own traveling companions, you have the luxury of coming to the airport no more than 15 minutes ahead of the flight, plus having the option to make last minute itinerary adjustments. With seat sharing, you might find yourself still waiting around the airport for the other passengers to arrive, and no ability to change the time of the flight.

MONTHLY PRIVATE JET SUBSCRIPTIONS

Another business model testing the market is the monthly membership private jet service, which allows customers to pay a monthly fee in return for flying a certain amount of flights per month (without having to pay for each flight individually). This type of service is geared towards business professionals who find themselves frequently between two major cities, and in theory, could save money annually by flying this way.

Yet, depending on the programme, the perks of a monthly “all-you-can-fly” membership can vary greatly. While some provide unlimited flights per month, you only can choose between a small amount of routes – which are often short hop flights. You’ll also be limited to certain aircraft types and sometimes to the amount of flights you can take each month. These and other restrictions can make the flexibility of private air travel disappear.

BOOKING TRENDS & BEHAVIOUR

What’s clear is that we’re seeing a lot of change, experimentation and innovation across the aviation industry – which ultimately is all great news for the customer. It’s fantastic to see both sectors of the air industry pushing the boundaries and swapping notes about what passengers of today and tomorrow really want from air travel.

At the booking stage, innovations like private jet apps and online private jet booking were all first inspired by the scheduled airline sector, and have now helped make private jet charter more transparent, accessible and tech-friendly to today’s travelers.

For more details on private jet prices, schedules or aircraft options contact us or call the PrivateFly team on +44 (0) 1747 642 777

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