Rise in ‘poor‘ millionaires who can’t afford to buy their own aircraft but want to fly privately will fuel rise in first-time flyers. 27% of business aviation executives predict in ten years time people will be booking private aircraft using crypto-currencies.
New research from Corporate Jet Investor(1) reveals 17% of industry professionals believe there will be a ‘dramatic increase’ in the number of people flying privately for the first time by 2021. A further 67% think there will be a ‘slight’ increase in first-time private jet flyers by then.
This year, 37% of business aviation executives interviewed anticipate that between 5% to 10% of those flying by private jet will be doing so for the first time, and 15% think it will be between 10% and 20%.
The main reason (cited by 47% of business aviation executives) for an increase in first-time users of private jets is that aircraft owners and private jet charter companies are expected to create more flexible pricing models to make their aircraft more accessible – 27% anticipate that in ten years’ time people will be able to book private aircraft using crypto currencies.
Some 42% of business aviation professionals believe an increase in ‘poor’ millionaires who can’t afford to buy their own aircraft but want to fly privately will also fuel the growing number of people flying privately for the first-time. Some 27% said improvements in technology and digital communication is making private aviation more accessible, which will increase the number of first-time flyers. It is also becoming more affordable for people because more owners and operators are letting people charter their aircraft on return legs that are empty for up to 75% below the normal price.
Alasdair Whyte, editor of Corporate Jet Investor said: “The global population of people worth $10 million or more is expected to increase by 41% between 2016 and 2025.(2) These people may think they are not rich enough to buy their own aircraft but they increasingly want to fly privately, forcing up the number of first-time users. This, coupled with improved technology and digital platforms and more flexibility from private jet owner in terms of how they charter out their aircraft, is making private aviaiton accessible to more people.“
(1). 103 senior business aviation executives were interviewed between 24th January and 26th January 2018
(2). Knight Frank Wealth Report 2017
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
