(Montreal) While conventional air carriers have struggled since March 2020, business flights rose 23% in the United States and 53% in Europe in the last quarter, compared to the same period of the previous year, according to data from the US Federal Aviation Administration and Eurocontrol.
Posted at 3:18 p.m.
And this escalation comes on the heels of the sharp increases in 2021.
Cancellations, delays and fear of exposure to COVID-19 have caused a surge in demand for private flights. Another factor is the accumulation of wealth among the ultra-rich. According to a report by Oxfam International, in January 2022, the cumulative fortune of the world’s 2,755 billionaires grew by $5 trillion
An example of these companies that have seen great growth during the pandemic: Toronto-based FlyGTA.
“After the pandemic, our results have improved in all areas, underlines its CEO and co-owner, Chris Nowrouzi. And we found that families were the main source of this increase. »
FlyGTA expects to more than double its fleet of seven aircraft over the next year. The company serves more than 20 destinations, nearly half in Florida or the Caribbean.
This taste for luxury has also fueled the appetite for second-hand appliances. But the number of used aircraft for sale at the end of February represented only 3.1% of the world fleet, its lowest rate in more than 25 years. Launching new products is a more favorable option, which fits well with the plans of specialized manufacturers such as Bombardier.
In the first three months of the year, Bombardier added the equivalent of US$1.3 billion to its order book to reach US$13.5 billion. Business aviation activity is above 2019 levels, said Chris Murray, an analyst at ATB Capital Markets in a notice sent to clients last month.
At the same time, airlines’ share of high-end flights has risen from 90% to 80% since the pandemic hit, according to Alton Aviation Consultancy managing director Umang Gupta.
“It’s a very particular niche,” says John Gradek, an expert from McGill University. But she seems to be going down the income scale. There are more options. If you book a business class seat on Air Canada for a Toronto-Vancouver flight, it can cost $3,000 to $4,000. By bringing together six or seven friends, it is cheaper to take a private flight than a flight on a commercial company. »
But a few black clouds are looming on the horizon.
The price of fuel, for example.
“And the Greta Thunberg factor is still there,” says Gradek. People are increasingly aware of the carbon footprint of flying. They feel a certain “flygskam”, the Swedish expression for the shame of flying. Because of all this, potential travelers think twice before booking a plane ticket, he explains.
However, with the pandemic and the chaos reigning in airports, the use of the private sector may seem easy to defend rationally, notes a former Air Canada executive, Duncan Dee.
“For those who can afford it, the very wealthy and business customers, it becomes a very justifiable solution. »