Rather than buy a private jet, many of the world’s wealthiest are choosing to have fractional ownership of them instead.
Fractional jet operators are doing “better than ever” since the pandemic, according to Richard Koe, managing director of industry analytics firm WingX. “Some people moved up into fractional programs, some people moved down,” Koe said. Many individuals new to being multimillionaires tried chartered private flights during the pandemic and have now decided to move up to fractional ownership.
Kenn Ricci, who owns multiple private jet companies, said his fractional operator Flexjet is doing the best. “[Flexjet] still have a backlog of customers in the next year,” Ricci said. “That’s something that we just never have had.”
Rich flyers are lining up to buy private flight memberships — and fractional jet operators can’t keep up with the demand https://t.co/Kzm2zsrDXa
— Bloomberg (@business) October 18, 2023
Fractional operators saw an increase of 5.2 percent in the first nine months of 2023, while charter flights fell 6.4 percent. Over the last four years, fractional flight growth eclipsed charter and corporate-owned.
One reason why fully-owned flights are declining, according to Koe, is privacy. Fractional flight records are anonymous, which is good for titans who don’t want to alert industry investigators and other sleuths.
An example is Louis Vuitton megabillionaire Bernard Arnault. Global warming activists on Twitter began tracking his flight to expose the carbon emissions of the fashion magnate, whose net worth is estimated to exceed $130 billion. He finally had enough of it, and decided to rent his way out of the spotlight.
Learn the benefits of becoming a Valuetainment Member and subscribe today!
“Indeed, with all these stories, the group had a plane and we sold it,” Arnault said on the LVMH-owned radio station Radio Classique. “The result now is that no one can see where I go because I rent planes when I use private planes.”
Arnault’s son, Antoine Arnault, defended the use of private jets despite their environmental impact, saying save time and give them an edge in their hyper-competitive industry. Flying private also allows one to avoid exposure.
“It’s not very good that our competitors can know where we are at any moment,” he said. “That can give ideas, it can also give leads, clues.” Hence why renting private, which grants even more opacity, is preferred.
Add comment