Private jet travel explodes with coronavirus

Audio 03:39

A private jet lands at Prestwick Airport, Scotland, during COP26 in Glasgow, November 2, 2021. © REUTERS / Dylan Martinez

By: Dominique Baillard Follow

3 min

The resurgence of Covid-19 and the omicron variant could be a new calamity for the air transport market, except for a very specific niche: that of business aviation.

The pandemic has caused private jet flights to explode.

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In the United States, the traffic of small business aircraft has increased by 40% in one year, in Europe, the increase has reached 20%.

This market had been exhausted by the financial crisis of 2008, it was still recovering when the coronavirus appeared, and today it is familiar with the highest levels of 2007. The five main manufacturers, including the French Dassault, no. 'have almost more used devices in stock. And orders are pouring in: for the third quarter alone + 50% compared to 2020 for the leading square. Containment and paralysis of the aviation sector were the triggers of this frenzy. To avoid the promiscuity of conventional flights, or to overcome reinforced health regulations, to go to cities abandoned by traditional airlines, or difficult to reach because of the changes, jets have become very popular.

Faster, safer, more comfortable, this mode of transport remains an unaffordable luxury for ordinary people.

This craze for jets is mainly due to the ultra rich

The price of a device varies between 5 and 70 million dollars.

For those who rent, the flight hour costs 25,000 euros according to Vistajet, one of the largest players in the sector.

It is therefore not within the reach of all budgets.

Neither of the budgets of large companies.

We can see that this increase also concerns government officials and diplomats.

But work is not the primary motivation for these rushed passengers. Contrary to the well-known discourse on businessmen who have changed their mode of transport to adapt to the pandemic, the boom in the sector is mainly linked to the leisure activities of billionaires. In the United States, the majority of flights are made to upscale resorts, by the sea or in the mountains. In Europe, too, tourist destinations have benefited the most, especially in Spain. The promotions of air taxis with digital offers have also contributed to this growth. A third of the demand comes from new passengers, who have never taken a jet before, whether they are in their fifties or millennials.

And if traffic is currently experiencing an exponential increase, it is mainly because the portfolio of billionaires is overflowing.

There is a correlation between the number of IPOs which have risen sharply in the past year and jet traffic, analysts at Jeffery Equity find.

With the market euphoria, the wealth of the ultra rich has swelled, so they no longer hesitate to put a few million dollars in a small device to facilitate their movements.

Manufacturers are delighted but they are struggling to meet this new demand.

With the scarcity of supply, prices are climbing at breakneck speed.

The price of a used jet is hovering around $ 10 million, a million more than before the pandemic.

IN SHORT

► The omicron variant threatens the US recovery according to the president of the US central bank.

Its spread could weigh on employment, slow growth and increase uncertainties about inflation, this is in essence what Jerome Powell will declare later in his scheduled speech in the Senate.

► Europe is putting 300 billion euros on the table to compete with the Silk Roads.

This is the figure released this morning by the

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This envelope will be financed by States, institutions and the private sector, its amount must be invested by 2027.

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• Coronavirus