LunaJets CEO warns of ‘hard landing’
* Lunajets says impossible to forecast charter – could see major drop or 50% rise
* $110m in revenue from LunaJets’ charter division in 2021
* The company acquired over 1,000 new clients in the past year
* Attacks competition saying: “Most of our competitors have either been acquired, gone into administration or are currently for sale. With our long-term track record and cash rich balance sheet we are ready to seize any opportunity as we expect more consolidation ahead when the market reverses.”
A “cautiously optimistic” approach is the best way forward through business aviation at present, according to LunaJets CEO, Eymeric Segard. Geneva-based LunaJets is warning EBACE of a hard landing as it sees more signs of market bubbles.
Segard said: “We continue to deliver on our strategy based on the best technology, and expand with new offices into new markets. Nonetheless, I maintain a cautiously optimistic and opportunistic approach as I don’t believe in the current euphoria and see more risks ahead for our industry.”
He believes the current trend lasts, and the market faces a major supply issue, or it reverses dramatically and faces a new wave of bankruptcies. “Last year, was like a wild pendulum, from one side to the other in 3 months and I don’t see any indication of a soft landing. Having said that I will not be surprised if we experience another 50% growth in our revenue this year if the current situation remains,” added Segard.
LunaJets’ website and mobile app receives thousands of visitors every day. A large portion of whom are newcomers who aim to avoid post-Covid commercial airport and airline experience at any cost. Last year, LunaJets acquired north of 1,000 new clients.
Segard adds: “Most of our competitors have either been acquired, gone into administration or are currently for sale. With our long-term track record and cash rich balance sheet we are ready to seize any opportunity as we expect more consolidation ahead when the market reverses.”
Guillaume Launay, sales director, LunaJets said: “This year-to-date, our growth is over 90%, considering a $110M revenue in 2021 for our private jet charter division. Our Web platform model and industry position puts us at the front line of any market changes; and I can tell you that the shift has been dramatic.”
Segard lists his view of the risks for the industry:
*Post-Covid recovery mostly based on new clients and short flights, rather than existing and long haul
*Business clients have not returned to pre-Covid level as video and remote working are still favoured
*Financial market volatility may send new clients back to commercial airlines
*The crypto wealth effect may disappear as fast as it stormed our industry
*War in Ukraine
*Supply chain disruption will delay plane delivery and maintenance
*Pilot and crew shortage
*Impact of inflation on charter rates
*Rising cost of debt and financing will impact the velocity of sales and acquisition market
*IPO’s, SPAC’s and M&A activity at nonsense prices will fade
*New Covid variants