In general, these efforts are working and the industry recovery is under way. The UBS Business Jet Index is reporting a stable business jet market after two years of deterioration, and data released earlier this year by ARG/US indicates business aircraft flight activity has increased 8.5% from a year ago. Business jet inventory is beginning to move, and buyers are taking advantage of some of the best aircraft prices that have ever been available. There actually has never been a better time to buy a share in a business jet.
Questions still persist about the necessity of private jets, but studies indicate it remains an efficient travel mode. A recent study by NEXA Advisors found that companies who use business aviation clearly outperform those that do not. Among business aircraft users, more than 90% were deemed the most innovative and admired companies in the nation, and the strongest in terms of corporate governance and responsibility, according to the study. The report also noted that business aviation can accelerate strategic transactions.
Those who travel privately understand the enormous convenience and unparalleled productivity this direct form of transportation, can provide. With as little as six hours notice, travelers can be on their way to visit multiple locations in a single day. While in the air, business jets serve as boardrooms with wings. Plus, with access to more than ten times the number of airports served by commercial airlines (5,000 vs. 450), private jets efficiently deliver business people, or their family members, exactly where they need to be-faster and with the level of security and discretion that today's executives require. Private jets are essential business productivity tools, indispensable for company growth and expansion, and for managing the complexities associated with family wealth.
The Future Of Fractional Ownership
The bottom line is that fractional jet ownership remains as relevant as ever due to its inherent ability to provide added value on so many crucial levels. Owners purchase only the amount of aircraft needed, with each flight tailored specifically to their requirements and managed personally by their chosen provider. Fractional ownership enables owners to fly on a closed fleet, offering the highest control over aircraft maintenance and safety. One also has the option to utilize multiple aircraft at the same time, critical when moving large groups or sending out different teams to several locations in a single day. Ultimately, those who invest in fractional jet ownership desire a sense of control and flexibility that cannot be matched by non-ownership aviation solutions.
As compelling as fractional jet ownership remains, however, it may not satisfy everyone's needs. Those looking for optimal air travel solutions may find that the answer lies, not with a single, specific solution, but with a set of solutions working in harmony. Those with a consistent need for private jet travel may find they are best served by identifying a provider that offers access to the broadest range of potential solutions.
No one is willing to predict how long it will take for the fractional industry to return to levels achieved in 2007. Just as with traditional aircraft manufacturing and sales, the fractional jet ownership business is cyclical. This is poised to be a year of transition for many private aviation companies, one reflective of cautious optimism about the market's recovery and the continuing evolution of product offerings. Private jet travel and fractional jet ownership, in particular, continue to be outstanding productivity tools, and truly necessary for high-performing companies, institutions and individuals.
Fred Reid is president of Flexjet, a division of Bombardier, the world's largest business aviation manufacturer. Flexjet offers a variety of jet ownership and chartering options.