Fractional and charter activity is performing well without business flying so “just think what’s going to happen when the corporates do come back”, Steve Varsano, founder, The Jet Business, told Corporate Jet Investor Town Hall delegates.
“A lot of corporates aren’t flying right now, a lot of people working from home – my information is that in New York City something like 80% of offices are working from home. Which is the good news because since the activity in our fractional and charter business is doing very well, just think what’s going to happen when the corporates do come back.”
An area with the potential to boost corporate travel is mergers and acquisitions. Whilst it is too early to sell to the partnering firms, Varsano said: “It’s probably the perfect time to approach them to sell the airplane of the company they’re acquiring, that does happen and we’ve seen it a couple of times.”
Varsano’s prediction about the global impact of Covid-19 at CJI London in February this year is one he wishes hadn’t come to fruition. But he noted business aviation can “turn on a dime”.
Offering a new prediction nine months on, the CEO-cum-visionaire, said he believes a vaccine will become available by year end. “I do know for a fact that one of the companies has about 700m doses of that ready to be shipped in December. You’ll start to get a comfort level of people who were scared to go who now do travel.
“So, I think not necessarily in three, but in six to nine months you’re going to start seeing corporates back in the office and start upticking on their travel and that’s going to overlap on the already existing personal travel.”
Varsano concluded “the bigs ifs, of course are the US election, Brexit, the [trade] fight with China”. However, one bright spot is the ongoing peace negotiations in the Middle East, he said. If agreement can be reached, Varsano predicts uptick in ultra-long range and wide body transactions.
This week’s CJI Town Hall – What do we know, now – included presentations from Joe Carfagna Jr, CEO, Leading Edge Aviation Solutions; Giovanni Piccione, CEO, G&G Aviation; and Rolland Vincent, founder, JETNET IQ. You can catch up with the full session below or click here to sign up for the next and access previous editions.
Meanwhile, read how speakers thought the US Presidential Election would impact business aviation here.