2022 Private Aviation Outlook: Solid Demand and Increased Ownership
As the pandemic continues its path at a global scale, many challenges and opportunities arise for the private jet industry after a record-breaking 2021. In fact, in order to register the increased demand witnessed especially by the U.S. domestic market, some rough skies had to be weathered in the early stages of last year. As Michael Farley said, “As it relates to aviation, no one alive today saw this coming nor the twists and turns.”
Farley, the Founder and CEO of Outlier Jets, based in beautiful Naples, Florida, recalls that the start-stop nature of 2021 was, simply put, extraordinary. “Travel was hit hard initially, private and commercial, with business aviation adapting faster to the changing winds thanks to its unparalleled capacity to adjust to consumer behavior.”
He complements, “Delivering a consistent experience was key during last year and that will remain as an instrumental added value for private jet companies in 2022, which for some might be difficult due to global uncertainty and lack of planning.”
Top private jet trends
New first-time flyers were a key element to jumpstart the private jet demand in 2021. These were passengers who needed to continue flying and wanted to do so in a safe and reliable manner. It is known that business aviation has reduced touchpoints and a seamless pre and post departure process, thus almost eliminating the possibility of exposure to the virus. Nevertheless, there is a trend in the making, recently witnessed by Farley as an opportunity.
“Some new flyers are skipping right into ownership. This can be understood as a good or bad thing for a private jet company. For Outlier Jets, it has been an opportunity as owners are coming to us to stay involved in the owner experience, not just the transaction. This means that they ask us to help select the appropriate management company, but also to stay involved on a go-forward basis with their ownership experience.”
Farley, adds, “We create value by maintaining the customer experience component as the clients segue into an ownership phase. In many cases, the client already experienced our service level from their jet card or charter experiences with our team. Our owners often like to fill their aircraft with a charter from the Outlier client base, resulting in a business opportunity for both parties involved.” Farley continued, “there is a level of comfort our clients have knowing we are accountable for WHO is utilizing their aircraft, while we subsidize their ownership costs.”
Challenges and opportunities for 2022
Diversification has proved throughout the years to be a key element for stability in the private jet market. Most recently, it showed its value during the pandemic, with private charter companies operating repatriation, cargo and even air medical flights in order to maintain flying hours stable. That flexibility is second to none in the travel industry.
For 2022, there are a wide array of opportunities for private aviation firms, apart from the increasing demand and first-time flyers that will continue to be drawn to the industry. “Pushing green initiatives is a big one. We acknowledge and welcome the debate that surrounds private aviation in the carbon footprint realm, and at Outlier Jets we are committed to drive actions that find concrete solutions to add value and meet stakeholder expectations. Going green moving forward is a must,” states Farley.
Furthermore, it is safe to say that more companies like Outlier Jets (who already accepts 11 forms of crypto) will jump into the cryptocurrency bandwagon with the aim to further facilitate the charter experience, while aircraft ownership should continue increasing as commercial aviation uncertainty continues.
Additionally, a potential downside is that companies might continue to exit the industry, business and commercial. “Aviation is hard... having experience through past cycles such as the financial recession is all helpful; trying to be smart and analytical with our product offerings while also having high communication with our client base so they understand some of the challenges is paramount for sustained success moving forward,” concludes Farley.
