Private jet rage rises as record number of leaflets strain system

Private jet pilots face increasing delays, cancellations and a shortage of available flights as the industry struggles to serve a record number of new pilots, while facing supply chain issues.

July was the busiest month ever for private jet flights, with more than 300,000 flights, according to Argus International. As things generally cooler in the fall, September saw nearly 300,000 flights and Argus predicts that October’s pace will break July’s record.

The flood of new private jet customers – driven by health concerns during the pandemic and rapid wealth creation – is now forcing an industry focused on slower growth. A shortage of new and used aircraft, delays in obtaining aircraft parts, crew and pilot shortages, catering issues and air traffic issues combine to create a growing number of delays and cancellations, according to industry executives.

Customers who paid five or six figures for their dream flights are now learning that even private jets face delays and logistical problems.

“These are people who have spent $ 200,000 and want perfection,” said Doug Gollan, founder of Private Jet Card Comparisons, a website that reviews jet card programs.

A private jet card comparison survey of private jet travelers found that more than 20% of them had experienced a service issue in the past few months.

Industry executives say the main problem is the lack of planes. People who own private jets and typically hire them for charter use the planes more often themselves, leaving fewer available for the charter market.

Fractional owners are also using their planes more. The supply shortage is spilling over into the entire system from private aviation, from charter companies and aircraft management companies to brokers and operators. Inventory of used aircraft is at its lowest and private jet makers Bombardier, Textron and Gulfstream of General Dynamics have all increased production to meet demand.

Pilots are also lacking. Many pilots have retired or recalled during the Covid-19 pandemic, and with commercial airlines aggressively hiring, private jet companies and owners are scrambling to find pilots. Finding cabin crew is also becoming difficult and expensive.

Shortages and delays also hamper the availability of aircraft parts, meaning repairs that are expected to take a day or two now span a week or more, putting more planes off the road.

Wheels Up, which began operating as a public company this summer, has just launched a new pilot employee equity grant to try to attract and retain more pilots. The program will provide fairness to full-time and part-time pilots on its seniority list as of August 31, and new pilots hired after September 1 will be eligible.

Even catering has become a source of customer complaints. Customers of private jets typically call their catering order a day or two before the flight. But plenty of new flyers are calling it the day before, which has created a mad rush for caterers trying to find and prepare the meals – and line up the right wine or spirits – that customers ask for.

“Say you have a customer who ordered Belvedere Vodka and the caterer couldn’t just get Gray Goose,” Gollan said. “So the customer got on the plane and he checked he was paying all that money and said ‘why didn’t I get my Belvedere vodka?'”

The cascade of problems has led some companies to stop sales and stop new customers. Sentient Jet just stopped sales of jet cards at midnight on September 30, saying it wants to focus on its existing customers.

NetJets halted sales of jet cards, fractional shares and rentals of light cabin aircraft, like the Citation XLS and Phenom 300. The company said demand for flights was the highest in its 57 years history, with an average of 500 flights per day against less than 400 in 2019.

“The large number of flights tax the air transport infrastructure in a way that we have not seen in years,” the company said. The suspension of light aircraft sales, along with other restrictions on card buyers, “allows the company to continue to prioritize what is most important – delivering the best possible experience for all owners. “.

Concerns about rising costs and falling margins are choking some operators and private jet companies. The Wheels Up share price has fallen more than 40% since its peak in July, in part due to analyst concerns about margins.

Wheels Up said it “is uniquely positioned to serve our members and customers in today’s environment with our fleet of aircraft owned, operated, managed and third party partners.”

The big question is whether the more than 10,000 customers who started flying privately for the first time during the pandemic will stick around if the problems continue to escalate. Gollan said while customers may complain about service issues, none of the 300 interviewees said they plan to return to commercial airlines.