Demand for private jets leaves the wealthy scrambling and hit by delays

[LAS VEGAS] Private business jets once provided refuge from airport waiting lines for the few that could afford them, but the fading pandemic has driven demand to such heights that even wealthy travellers now face cancellations and delays.

While a headache for some jet-set travellers, the crunch is a boon for makers of corporate planes built to carry 19 or fewer passengers in luxury. Announcements for new orders are expected at the world's largest business jet show that starts on Tuesday.

Some fractional ownership and charter-plane operators are turning away business, and facing a further crunch as the holiday season looms - and are buying more planes.

Traffic has surged above 2019 levels in the United States.

Combined with staffing shortages, the situation is squeezing industry services from fuelling to catering, and fewer spare planes are available to replace those that break down, executives said.

To protect service, NetJets Inc recently suspended sales of jet cards, which allow customers to pre-pay for blocks of flight hours.

The world's largest private jet company said it is investing approximately US$2.5 billion for 100 new aircraft to be delivered between now and the end of 2022.

"The vast number of flights is taxing the air travel infrastructure in ways we haven't seen in years," said Ohio-based NetJets. It has seen about 10 times more flights delayed due to air traffic control in June 2021 than in June 2020, when flights dived during the pandemic.

Flight demand is "currently exceeding all other highs" in its 57 years, with an average of around 500 flights a day, up from under 400 a day in 2019, it said in a statement.

Fly Exclusive, which provides jets to charter operators in a kind of wholesale business, is seeing a significant increase in requests since their clients are increasingly running short of aircraft.

Investors closely watch the dynamic in the private jet market as operators are key customers for corporate planemakers.

The delays are creating complaints among affluent travellers, who are already looking for alternatives.

REUTERS

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