Demand for private aviation is high
All those flight hours add up to create a valuable, multi-billion market that is ripe for disruption. Private aviation and charter flights cater to a market worth $23.6 billion in 2021, up from $23.1 billion in 2020, according to the Mordor Intelligence Business Jet Report. Despite suffering setbacks due to the COVID-19 pandemic and its impact on travel, private aviation as a whole has proven stable compared to the broader economy.
Although demand is high and on the rise once more, there are some factors restricting the growth of the private aviation industry and limiting the potential for investors. Most of these limitations are related to the business models associated with private charter services. Luckily, private jet air taxi services are here to change that.
Factors restricting the growth of private aviation
The major factors limiting the private aviation industry include:
- Inaccessible pricing: Many private charter services limit their potential passengers by charging excessive rates. While rates vary depending on the type of aircraft, origin, and destination, a private jet rental costs from $1,000 to $8,000 per hour. The average total private jet rental cost in the U.S. ranges up to $17,000 – and there are outliers that can reach as high as $75,000. Not to mention landing fees, crew lodgings, wait time fees, one-way fees, and other extra costs some companies tack on.
- Exclusive business models: Some private jet charter companies require an annual membership fee which must be paid before travelers have the right to access their services. These costs come independent of any trips the members take; they have to pay their membership fee and the costs associated with every flight they book. This further restricts the potential market of travelers these companies reach.
- Lack of traveler education: Some travelers just simply aren’t very familiar with private flying. They don’t know that there are dozens of small private airports for every major commercial air travel hub in their region. Historically, there has been no easy way for travelers to look up all the nearby airports and private flights available to them in one centralized location.
These challenges also offer opportunities to develop new modes of private flying. Air taxi services are emerging now as a better way to fly private.
How air taxi services solve the private aviation industry's problems
- Novel technology platforms: Private jet air taxi services like Flewber are made possible by a powerful technology platform that can link travelers to available flights on the routes they need in real-time. These technology platforms serve as search engines and booking agents, wrapped up in a user-friendly mobile application that makes scheduling a flight for same-day travel a simple process, even for travelers that aren’t familiar with private flying.
- Network of Part 135 operators: A network of licensed and certified operators means a wide range of flights to many destinations available to travelers directly from the application. As these networks expand, air taxi services are able to more quickly and efficiently service regional routes that large commercial airports dropped or that private charter flights charge excessive prices to fly.
- Accessibility: Accessibility is important in terms of usability and inclusivity. With a behind the scenes network and intuitive mobile application, an air taxi service offers even the uninitiated private flyer an easy way to identify flights on the route they need and schedule it in a few simple clicks. What’s better yet is that air taxi passengers don’t have to pay annual membership fees or sign any contracts – they just open the application, schedule their flight, and pay for that trip only.