Since 2008, there’s been a new normal when it comes to aircraft ownership. A lot of sectors felt the downturn around that time, and plane sales hit slow growth – a trend that isn’t expected to change for another decade.
That means planes are sitting idle, and such widespread downtime makes a quick impact. Depreciation of new aircraft that are maintained and in use is around 10 percent in the first year, and about 5-7 percent per year thereafter. If a plane is sidelined for any reason (CEO quits, death in the family, etc.), depreciation is even higher.
Surprisingly enough, as idle time hits an all-time high, we’ve seen business aviation at its busiest level since pre-recession days. More people are in the air but they’re hesitant to buy, so travelers are accessing options – primarily through membership programs – that provide the benefits of ownership without additional cost and maintenance burdens.
Even for companies that do own planes, membership programs provide an important option. When the company plane is down or in use, it doesn’t mean they lose access to their preferred aircraft. Using member hours for supplemental lift gives additional time on the same model aircraft through a shared service.
In fact, supplemental lift is becoming more common because of the strain a shared jet has on executives’ schedules. A recent survey found 74 percent of pilots say their companies operate just one airplane. It’s hard enough to schedule multiple meetings for executive teams, let alone trying to sort out sharing an aircraft.
Beyond the numbers, membership at Magellan Jets also means getting access to the specific plane you choose and the high touch service that goes with it. This stands in stark contrast to the industry standard, where most private aviation vendors focus on getting customers to their destination in relative style, without much emphasis on personal preferences. They provide certain categories of planes and don’t do the research necessary to give travelers a truly personalized experience.
The reason? Pure economics: there are operational challenges in the details, and it is much easier to approach bookings in terms of plane optimization (which planes in the fleet can most readily be put into play) rather than customer optimization (which plane best meets the traveler’s profile).
Want to read more about why you benefit when you feel like the aircraft you’re on belongs to you? Read our white paper on flying like you own it.
Magellan Jets is the leader in domestic and international private jet travel offering private and corporate travel memberships and charter flights. With a global network of thousands of pre-qualified aircraft, Magellan Jets is committed to the highest safety standards, personalized experiences and top level customer service.