1701521328 The unstoppable rise of private aviation

The unstoppable rise of private aviation

If luxury is largely about exclusivity, about enjoying what is forbidden to others, the ultimate privilege would be a time machine. “We sell something that ordinary mortals cannot buy: time. A commodity that is difficult to exchange. We are a time machine. I can get you, an investment fund manager, from your coastal villa to your home six hours faster than a commercial flight. And if this option costs you $15,000 more than taking a commercial flight with your entire family, go for it without hesitation.”

The speaker is John Matthews, founder and CEO of AirX, a private aviation company with a fleet of 16 aircraft that competes in Europe, with headquarters in Malta and operational centers in London. A dissident and non-conformist in his industry, Matthews has no qualms about describing the true nature – or at least the truth as he understands it – of a company that moves more than 38,000 million euros worldwide. Globally, and the projects are expected to reach 60,000 million in 2030, according to the consulting firm Fortune Business Insights.

In this report, it will be time to return to Matthews and his clear vision of a company whose customers represent 0.0008% of the world’s population, most of whom are men over 50 years of age, specializing in banking, Focus on finance and real estate.

The jet crew boards the aircraft, which is located outside the Harrods luxury hangar at Luton Airport.The “Jet” crew boards the aircraft, which is located outside the luxury Harrods hangar at Luton Airport. Manuel Vazquez

The Sikorsky S-76 helicopter is currently about to take off from Battersea heliport on the south bank of the Thames. It’s an overcast morning in London and visibility problems threaten the journey: a 20-minute flight to Farnborough Airport, southwest of the city. The alternative would be at least a two-hour drive with hellish traffic. The customer is the priority and as soon as clear minimum amounts are in place, the plane flies to its destination. The waiting time was spent comfortably in a luxurious room next to the track, with coffee, tea, pastries and spirits available.

Leather seats, soundproof cabin, large windows, space for eight people. It is part of a global fleet that includes 18 other helicopters and 270 jets, including the mid-size Praetor 600 and the sought-after long-range Gulfstream G650. They all belong to Flexjet, a company based in Cleveland (USA) that has been operating since 1995 and set out to conquer the European market shortly before the pandemic in 2019.

The cabin crew serves travelers a few glasses of Ruinart champagne.The cabin crew serves travelers a few glasses of Ruinart champagne. Manuel Vazquez

Flexjet has also set up the Red Label Academy in Farnborough, where the tactical control center is located. It is a culinary laboratory for good manners and etiquette rules for cabin crew members. The project is led by Francesco Vanerio, Vice President of Customer Experience. Throughout his professional career, he has held positions of responsibility in premier hotels and restaurants around the world. The highlight of this career came when he achieved the position of Bar Manager (manager of the various bars) of Villa D’Este, the palace on the shores of Lake Como in northern Italy that symbolizes all the luxury and sophistication that the bar has to offer has rich and powerful can strive. “I met Flexjet President Kenn Ricci there. The rest is history,” explains Vanerio.

A story that is easy to guess. Ricci wanted to improve the customer experience in a highly competitive industry that saw 5.4 million flights operated in 2022 alone. And he managed to sign the Italian.

A member of the crew of a Flexjet corporate jet at Farnborough Airport, southwest of the capital.A member of the crew of a Flexjet corporate jet at Farnborough Airport, southwest of the capital. Manuel Vazquez

In groups of eight or ten people, the company’s cabin crew stay at the Dorchester Hotel in London. The most exclusive in the city for years. Favorite destination for aristocrats, billionaires, established writers and artists. Restaurant with three Michelin stars and very little tolerance for shorts or sneakers. For several hours, Flexjet employees can order whatever they want and move around the hotel as they please. The purpose: to put yourself in the shoes of your future customers and understand what kind of luxury they are used to.

The next morning everyone will report on their experiences: “It’s such an elegant decoration”; “Everything seems to be designed according to your wishes”; “They recognize your mood and know when to insist and when not to bother you” – they learn to prepare dishes of a certain exquisiteness in small spaces and are given tips on how to surprise and delight their passengers.

“Each of our jets has a different and unique decoration. And the attention goes so far that, for example, you try to find out what type of wine satisfies a customer the most,” explains Megan Wolf, Chief Experience Officer (that could be translated: Chief User Experience Officer) of the company. “Although we managed to transfer a group of young senior executives who demanded hamburgers and fries from a well-known fast food chain. “The best experience of your life,” they told us later,” says Wolf ironically.

Flexjet operates on the economic model of shared ownership (fractional ownership, as it is called in the United States), in which the owner – the company never calls them customers – buys a fraction of the aircraft (usually 1/16) and earns at least 50 flight hours per year, no possibility of termination in the first three years. The advance payment, without refund, is just over two million euros.

Interior of the cabin of a G650 jet with dining room service.Interior of the cabin of a G650 jet with dining room service. Manuel Vazquez

There are other commercial options, ranging from simply renting flight lessons in advance to charter flights for a specific occasion. They all end up being much better than the idea of ​​owning an aircraft individually, with the associated maintenance, crewing and refueling costs. The price for a new Cessna CJU, currently probably the cheapest and lightest jet on the market, is no less than 4.4 million euros.

Life takes on a different perspective aboard a G650, crafted into the leather of its spacious seats and surrounded by fine wood. The flight attendant pours a glass of Ruinart champagne and begins to serve the first salmon and cucumber sandwiches of a traditional English afternoon tea.

—Isn’t the use of this type of aircraft an attack on efforts to combat climate change? – asks the reporter.

Francesco Vanerio, vice president of customer experience at Flexjet.Francesco Vanerio, Vice President of Customer Experience at Flexjet.Manuel Vázquez

Global commercial aviation is responsible for at least 3.5% of climate change caused by human activities. Not only through the emission of carbon dioxide or nitrogen, but also through other pollutants such as smoke plumes or soot residue. Private aviation accounts for just 4% of the sector’s total emissions. However, if the level of pollution and the associated responsibility is attributed to each individual, it is obvious that the flight of a handful of people is proportionally much more harmful to global warming than that of 300 or more travelers on a commercial trip.

“We purchase up to 300% of our emissions through carbon offsets and other gases [certificados de reducción de emisiones, verificados por estándares internacionales, que sirven para reducir en términos globales el volumen total de gases de efecto invernadero]“And we even offer our customers the opportunity to travel with sustainable aviation fuel,” defends Viv Diprose, communications director at Flexjet.

Such exclusive companies, whose service is available only to a few, strive to promote a more accessible image. It is true that the use of private jets has increased by up to 40% during the pandemic and it is an option that remains extremely attractive for the richest, but it is, as announced, doubtful that this type of flights is really attractive Now more available to other types of customers.

And any attempt to provide detailed and original service and attention will be appreciated by users, but that will not be the main reason they spend their money.

“Shit. We are not a sector focused on services, although it is obvious that we are not going to feed people with carts like on an airliner.” We return to Matthews, the rebellious businessman. “It doesn’t come up either the details. If the blind on one of the windows on my jet breaks tomorrow, I will not ground a piece of equipment that produces $25,000 a day just to repair it. The flight will continue until maintenance check day . We all have a damaged seat that doesn’t recline properly, or a carpet full of leftover food (…) The key is a spacious and comfortable cabin. But I don’t have WiFi on many of my devices. I still provide entertainment CDs or DVDs. It doesn’t matter. I can transport a sports star or a famous singer who is tired after a game or concert to anywhere in Europe in five hours less than any commercial airline. “That’s what makes money worth it,” he defends.

John Matthews, founder and CEO of AirX, in the cockpit of one of his jets.John Matthews, founder and CEO of AirX, in the cockpit of one of his jets. Manuel Vazquez

The number of private jets worldwide has increased from 9,895 in 2000 to 23,133 in June 2022. An increase of 133%. According to data from the High Flyers 2023 report from the Institute for Policy Studies in the UK, there are around 600 new devices every year. The general consensus among analysts suggests that the sector is resilient and its future is bright. However, Matthew has decided to play Jiminy Cricket. He assures that there are dozens of companies that have taken on crazy debts to acquire aircraft worth 40 or 50 million euros. They were all successful based on a fairy tale, says the owner of AirX, which in many cases was a pyramid scam. The money advanced by new customers is used to pay for services promised by previous customers in a business with fierce competition and limited profit margins.

“When you board a commercial aircraft, you are protected by the airline, your travel agent or the consumer protection agency itself. But the private jet industry is unregulated. I can go to my broker’s website and buy a flight from Azerbaijan, Luton or Mongolia. “Nobody cares if a billionaire loses his money on a failed charter,” Matthews says. “But behind them are savers who bought bonds or stocks, debtors who delivered fuel or catering, and hundreds of workers who make a living from it,” he remembers. But the industry will continue to exist because, as the businessman wryly points out, this boom has created many addicts. From billionaires who, once they get to know it, don’t want any other way of traveling. A new world of technological geniuses has emerged who have amassed immense fortunes. They are the industry’s main customers.

Night view of London from a helicopter.Night view of London from a helicopter.Manuel Vázquez

The helicopter returns to Battersea heliport. The nighttime lights of London reinforce the metropolitan dimension of a city that was once the center of business and transactions for the rich and powerful from around the world. Shortly before landing, the pilot begins to circle above the skyscrapers like a bird of prey. The runway is occupied by another ship that was having problems. We have to take a detour to other facilities in the west of the city and wait for the green light there. Half an hour late. Insignificant for any commercial air traveler. An exception that must be avoided in the exclusive world of private jets.

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