Passenger airline crisis serving up opportunities for private aviation say Zedra and Fly Elite Jets
As a result, significant new growth opportunities are now emerging in the private aviation sector: high net worth and ultra-high net worth Middle and Far Eastern cash buyers now swoop in to buy up idle passenger planes, then convert these to freight use. The demand for aviation freight has never been stronger, thinks FlyEliteJets, making airline freight an attractive and growing market.
Change on this scale has also led to business booming in related markets, such as the private aeroplane and helicopter registration sector, reports ZEDRA, a specialist in this area.
Andrew Wilson, head of marine and aviation at ZEDRA, who advise on ownership and taxation structures for private jets, notes substantial interest in the market for private jets over the last year. "At the start of lockdown inMarch 2020, we saw all sectors slow dramatically, as it was not clear at that time how the new market reality would look. Now twelve months on, it is clear that commercial passenger aviation is likely to remain subdued for some time, even with the vaccine programme rolling out successfully in the UK, but demand for private jet ownership has soared.
This is because business leaders look to adapt to the new reality of border controls and enforced quarantines by shifting international business meetings onto a day return basis. At the same time, private helicopter ownership and usage is booming, as CEOs fly directly point to point for meetings, avoiding contact with the wider public.
Aircraft are now rarely on the ground with demand up by 70% since the third quarter of 2020, as business owners and VIP travel starts in earnest.
FlyEliteJets explained that its helicopter passengers now benefit from enhanced safety with perspex screens dividing pilots from passengers and dual air supply for the cockpit and VIP cabin. FlyEliteJets private jets and helicopters undergo intensive sanitisation before and after every flight to safeguard clients.
ZEDRA has offices in a number of key jurisdictions suitable for marine and aviation structuring, including Cayman Islands, Isle of Man, Hong Kong, Jersey, Guernsey, Netherlands, Singapore, and Switzerland.
FlyEliteJets is an award-winning private jet company based in Marylebone, London, providing aircraft management, worldwide VIP charter flights, aircraft sales and tailored cabin design for Heads of State, Royalty and global corporations.