Globally, the aviation industry has seen a remarkable drop due to COVID-19. Recently, IATA reported that the industry could lose around USD 84 million of cash reserves this year.
With existing air-travel demand, the situation could turn into new opportunities for some. Furthermore, the private jet industry has experienced a spike, as passengers are looking for safe travel options. The rise is due to passengers willing to avoid crowds, maintain a safe distance, and enjoy a more privileged way of travel.
A study by European private jet charter operator Globe Air AG – highlights that 270 person-to-person interactions are possible in airline passenger travel where one could be exposed to the pandemic “less than 20 on private flights”.
An Australian private jet operator recorded that there was an increase in demand. However, the operator reported struggles to respond due to a lack of flight crew or aircraft. Likewise, a Singapore based operator had also highlighted an almost 9% surge in demand. Meanwhile, a US-based private jet operator’s executive stated that the demand has grown by around 20%.
According to a study conducted in 2019, experts estimate that the size of the global air taxi will hit USD 6,63 billion by 2030. The data projects that the private jet industry is set to grow due to COVID-19.
After the removal of travel restrictions, the demand for air travel will experience a jump. The surge supports the passenger confidence criterion. Moreover, with lower fuel costs, private aviation would be more beneficial for its investors and other stakeholders.
Since the private jet industry is linked to tourism and travel services, new cooperation models between the two businesses will get formed. The models may include merger and acquisition transactions between air operations and tourism companies. The result will create a positive impact, creating a domino effect on industries related to employment.
An example from Turkey, an aviation hub and holiday destination, shows that there are 194 air taxi operators, as stated in the annual report of Directorate General of Civil Aviation in 2019. The facts show that Turkey has the potential to create significant investment opportunities. Rentals, leases, and jet memberships as a package of privileged services would be helpful for the industry’s recovery in this difficult time. In conclusion, a business model of ‘COVID-19 Free Travel’ could turn propellers to generate income.
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