Private aviation restricts direct flights to attract high-speed Internet

By Alison Lambert

(Reuters)-Due to the economic recession caused by the pandemic, corporate travel has decreased this fall, and private airlines are going straight to executives, who are cautious about taking business meetings because of limited direct flights.

Private air traffic has rebounded above 2019 levels, thanks to wealthy leisure travelers avoiding commercial flights in the early stages of the pandemic to avoid the virus or due to reduced direct flights.

Now, some charter companies are trying to extend this advantage to business travel. Although business passenger traffic rebounds driven by wider leisure, regular flights to some commercial centers are still below 2019 levels.

General Dynamics (NYSE:)’s Gulfstream Aerospace Company and other business aircraft manufacturers and Textron Corporation (New York Stock Exchange:) Production is increasing as demand increases. Competitor Bombardier (OTC:) announced earnings on Thursday.

Due to frequent flyer demand and airlines’ appetite for higher-margin premium fares, business travel, which is expected to recover this fall, is critical to the aviation industry.

However, due to the increasing number of COVID-19 cases in the United States due to remote work and more aggressive Delta variants, a full recovery may take several years.

With the relaxation of restrictions, major US airlines are resuming routes. Once fully vaccinated Americans can fly to the country, Delta Air Lines (NYSE:) will more than double the number of daily flights between the United States and Canada starting in September.

However, according to data from the aviation data company Cirium, domestic flights of major airlines in July 2021 dropped by 15.3% compared to 2019, and flights to and from certain commercial centers were reduced by half.

This creates opportunities for companies like Airshare, this year with the development of three new Bombardier Challenger jets. Its business flow has returned to 90% of the 2019 level.

Andy Tretiak, Airshare’s chief marketing officer, which provides charter flights and other services, said: “It’s very difficult to get you in and out of your destination on the same day (via business) to attend meetings.”

“They have to meet their schedule according to the airline’s schedule,” Tretyac said in July of his customers who also fly on commercial flights.

“But they would rather do the opposite.”

According to FlightAware’s weekly average data from July 21 to 28, although US commercial airlines’ flights have soared to 2020 levels, they are still down by 20% compared to 2019. In contrast, compared with 2019, business aviation flights increased by 23% this week.

David McCown, president of Air Partner PLC Americas, which provides charter services and other services, is expected to receive some new company shuttle contracts, “in the third quarter, of course, in the fourth quarter.”

He said that the British-based Air Partner signed a new shuttle contract with an energy company in 2020, and the company was unable to find direct flights to Latin America due to layoffs.

Nevertheless, private aviation is still a niche market, and the prices are prohibitively high. According to the National Business Aviation Association, business jet flights account for only 4% of passenger traffic at the busiest airports used by commercial airlines.

Air Partner has announced an hourly rate of US$7,300 for medium-sized cabins in the United States.

Tretiak admits that private aviation cannot beat airlines in terms of price, but it can attract passengers through fast service at smaller airports.

FlightAware said that in the United States, 9,399 flights were cancelled in June due to labor shortages and other reasons.

“What we are competing with is the value of your time,” Tretyac said.