Singapore’s Booming Commercial Jet Business
The past two years have not been easy for the airline industry, with the pandemic and other events causing a significant drop in demand during most months.
While passengers have slowly been getting back to flying as usual, there have been some shifts in the way that people travel. One of the adjustments is the increasing reliance on the business jet in Singapore and nearby Asian countries.
Many wealthy business people, multinational corporations, and generally well off families have decided that travelling private is the best way to fly. That is why the business of renting private jets is more profitable in Singapore than ever before.
Below is an explanation of why this sector is experiencing such sharp growth.
Demand for Private Jets Skyrockets
Even though commercial airlines in Asia have suffered a downturn in ticket sales since 2020, the demand for private jets is a different story. Demand for corporate jets has skyrocketed in the past two years, with corporate and individual clients requesting chartered planes for trips to other parts of Asia and around the world.
The early parts of the pandemic saw many private jet service providers purchasing pre-owned planes. Not only were they able to save money on the purchase, but aircraft that had not been getting much use were now flying the skies again.
Pre-owned planes, however, are out of stock in 2022. Businesses that offer private jet rentals and flights are now purchasing brand new planes from manufacturers such as Dassault Aviation. These companies are seeing demand that is around 20 to 30 per cent higher than 2019 levels. What is more surprising is that the market is not slowing down, even though the pandemic restrictions around commercial flights are significantly reduced.
Why Are People Flying On Business Jets?
Market analysis and anecdotal reports both suggest the pandemic is playing a significant role in the demand for business jets. People who flew business or first class for work trips did not have the luxury of waiting for airline restrictions to lift, which led to them renting private jets to reach their destinations.
When people begin to fly privately, they understand the benefits of this mode of travel. Not only do they have the plane to themselves, but they can depart from and arrive at smaller, less busy airports. Travelling by jet saves a lot of time, compared to the hassle of traffic and slow security lines at major airports.
People also feel safer on private jets, as they do not have to worry about another passenger making them ill. Even if you are travelling as a small group, the people are likely to be from a single family, friend group, or company.
Are Private Plane Flights More Affordable?
Even though renting a private jet is still more expensive than buying an economy class ticket for most trips, the cost is a lot more manageable than most people would assume. Comparing jet rentals to business or first classtickets shows that renting a private plane is not much more expensive than high-end tickets on a commercial flight.
In addition, many jet companies offer discounts when they want to book travellers for empty legs of flights. If they are flying a client from Singapore to Taiwan but do not have anyone scheduled for the return trip, they may advertise flight availability and a discounted price for that journey.
With private jet companies increasing their inventory of planes and offering discounts and promotions throughout the year, flying by private jet is a lot more affordable compared to five or ten years ago.
Can Supply of Jets Keep Up With Demand?
One of the issues that business jet chartering companies face in Singapore and other countries is a lack of supply of private planes. Companies that manufacture these jets slowed down production in 2020, as did nearly all business sectors.
While demand has gone up significantly in 2021 and 2022, production has not caught up. A combination of material shortages, supply chain bottlenecks, and hesitation from manufacturers is resulting in a lack of private jets compared to swelling demand.
Fly With Peace of Mind
One of the reasons why people are so enamoured with flying private is the luxury associated with the experience. You are flying so high in the air on a plane with next to no other passengers.
While luxury is why some may choose to fly private, others have different incentives. Privacy is a significant aspect, as business people and company teams would rather fly private, allowing them to continue working and discussing ventures without worrying about anyone eavesdropping.
Safety is also a paramount concern for many who fly private, as they believe renting a jet is a lot safer than sitting next to a hundred other strangers, even if they fly business or first class.
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