Private jet broking shows first signs of improvement

The private jet broking market is showing the first
signs of improvement, according to David
Macdonald, director of Air Partner Private Jets

In a press release published today by Air Partner Private Jets, Macdonald reflects on the
dominant trends within the industry over the last six months, and shares his
thoughts on expected trends for the rest of the calendar year.

“We
are starting to see tentative signs of recovery within the private aviation
sector; huge wealth creation in the BRIC economies means that we are seeing
particular growth across the emerging markets, as well as the development of
new ‘hubs’ for private jet activity in the former CIS. In June this year,
Air Partner formed a strategic partnership with India-based The ESTD to further
capitalise on the opportunities within that country.  Enquiries from BRIC
countries were up in H1 and we anticipate further growth as existing and new
high net worth individuals continue to fly private,” he says.

Macdonald
continues: “In line with the economic downturn, corporate demand for private
jets has remained relatively low in the calendar year to date.  However,
there is still an important role for experienced charter brokers to bridge the
gaps that scheduled services cannot fill. Moreover, many of our clients
understand the savings that a good broker can achieve, and with corporate
budgets expected to remain tight for the rest of the year, we are confident
that we can continue to help our clients get the best results with the
available budget.”

“Value
has become increasingly important in recent years as a result of the wider
macro-economic climate; consequently, we anticipate that the next few years
will be extremely difficult for any broker who cannot demonstrate where they
add value to their clients’ procurement process.”

“Good
service, flexibility and value have been the main trends for private aviation
and we expect to see these continue for the remainder of 2012. Increasingly potential customers are disillusioned by jet and fractional
ownership – which requires a significant amount of investment and upkeep for
what is ultimately a depreciating asset. Ad hoc charter and card programmes are
a more flexible and savvy way of enjoying the benefits of private aviation
without the contractual and financial obligation of owning a jet or a share of
one.”