Is This Business Aviation’s Frustrating New Normal?

Clients are paying US$5,000 to US$25,000 per hour for private jets, and in return they’re getting delays and downgrades. What gives?

Words: Michael Verdon Illustration: Rami Niemi

A CHIEF EXECUTIVE recently shared an email about a jet charter his company had arranged for important clients. Scheduled for an on-time departurefromAustin,thepilotsnoticedablinking light in the cockpit and called in the mechanics. Several hours later, the issue was resolved, but the crew, which by then had exceeded FAA-mandated hours for the day, was grounded. Unable to secure a replacement aircraft, the clients didn’t complete the flight to Phoenix until the following day. The CEO, an experienced private flyer, was incensed that such an expensive trip had been delayed because the provider couldn’t find another jet. “One of the most incredible s*** shows ever by a charter company, ” he wrote.

For an industry that prides itself on clockwork white-glove service, dealing with the massive, COVID-era influx of newcomers from the commercial airlines has been a struggle. “We’re seeing 25 to 40 per cent more volume than previous years, ” says Michael Silvestro, CEO of Flexjet, a fractional-ownership and jet-card provider. “Our

companies are all trying to get supply up to these levels of demand. We’re in the ultimate famine-tofeast moment. ”

NetJets, the largest fractional provider, suspended all jet-card sales to ensure it could keep its fractional owners flying on time. “NetJets’ flight demand is currently exceeding all other highs in our 57-year history, ” wrote company president Patrick Gallagher, last July, by way of acknowledging that some owners had experienced delays. “The vast number of flights, ” he continued, “is taxing the air-travel infrastructure in ways we haven’t seen in years. ”

Jay Mesinger, CEO of Mesinger Jet Sales, says he’s even seeing some companies change the terms of service in mid-contract by lengthening the amount of lead time clients must give them, and echoes Gallagher’s sentiments: “We haven’t come to grips with this yet.I think there will be a lot of disappointment. ”

Delays and aircraft downgrades are the two main complaints. A scarcity of pre-owned aircraft for sale, air-traffic-control delays, higher fleet-utilisation rates – which means both more maintenance issues and fewer replacement jets – and parts, fuel and labour shortages are all hitting simultaneously, creating a perfect storm of frustration for the private flyer.

“Passengers are also scheduling flights in a much shorter window, ” says Anthony Tivnan, president of Magellan Jets, which logged a 240 per cent year-over-year increase in jet-card sales from January through August. “Every weekend last summer was comparable to peak periods such as Christmas and July Fourth. ”

Tivnan says Magellan is spending “significantly more” on customer outreach in an attempt to educate clients on how to minimise delays: book earlier, avoid flying from Thursday to Sunday and during peak travel periods – in other words, exactly the hoops a coach passenger jumps through to snag a seat on a commercial flight.

And yet despite all the gritted teeth, nobody sees a mass exodus back to commercial. “People are willing to deal with delays to a certain extent and may bounce from company to company, ” says Peder von Harten, vice president of sales and marketing for Mississippi-based Nicholas Air, who says his company has added four new airplanes and plans to have two more by year’s end. “But they won’t all leave the market. ”

Doug Gollan, editor and founder of Private Jet Card Comparisons, puts it more bluntly. Referencing a recent 300-member survey where 100 per cent said they would continue to fly privately, he insists that “whatever delays and kinks are out there, these new flyers are not going back to the airlines” .

The New King

In late august, the Gulfstream G700 took the equivalent of a royal tour when it flew from its Savannah, Georgia, headquarters straight to the Doha hangar of its launch customer, Qatar Executive. The flagship plane then travelled to Paris to give European clients a preview of the finished product. The G700 set speed records on all three legs, carrying a full payload and with 10 people on board, clocking in at Mach .90 (1,111km/h) on the return to Savannah.

“These were our longest flights to date and the first outside the US, ” says Scott Evans, Gulfstream’s director of demonstration and corporate flight operations, who piloted the G700. “Operationally, it was flawless, and the 27.5 hours of flight time gave us the opportunity to maximise our test capabilities. ”

Evans has seen the ultra-long-range jet evolve across five previous test aircraft, with this sixth boasting a finished interior. “We’re not required to build interiors for certification, but it lets us show customers we can provide a mature airplane from serial number one, ” Evans says.

Certainly, the delegation in Doha – including Qatar Airways Group executives, media and top clients – were excited to see the gleaming G700 up close. “It will be used as a charter aircraft in our fleet of long-range and ultra-long-range aircraft, ” says captain Husam Khalil, vice president of operations for Qatar Executive, adding that its order of 10 G700s will supplement an earlier contract for 14 G650s.

When the G700, with an estimated price of US$75 million, enters into service this year, it will mean an air war with Bombardier’s Global 7500, the plane currently sitting at the pinnacle of business aviation. (Dassault has also announced its Falcon 10X, but that ultra-long-range jet won’t enter service until 2025.) “It’s suddenly very competitive at the top, ” says aviation-industry analyst Rollie Vincent. “Gulfstream has made smart choices in the next-gen development of its 650 platform, ” he adds, noting the G700’s use of the new Rolls-Royce Pearl engines, larger cabin and Symmetry Flight Deck. He calls the plane “a significant advance” .

Gulfstream’s Evans highlighted the flight deck’s performance, courtesy of its 10 touchscreen monitors, advanced head-up displays (like those found on fighter jets) and sidestick controls. “It’s a holistic design that drives simplicity, ease of operation and situational awareness, ” he says. “That interplay of features is the biggest thing we accomplished in the cockpit. ”

With the largest-in-class interior and features such as circadian lighting, 20 large windows and a rear bedroom suite, it’s safe to say the G700 now rules the private aviation realm – until 2025, at least.

The G700’s recent 23,175km transatlantic flight set three speed records.