Wealthy Fliers Worried About Coronavirus Turn to Private Jet Service

Commercial air travel has plummeted in the pandemic, but interest in private jet service is surging, particularly among people who have not paid to fly privately before.

For years, jet service providers have ferried corporate executives and wealthy leisure travelers who paid high fees for the privacy and security. Now, those same companies are shifting to meet rising demand from people worried about getting on a commercial flight.

Over the Memorial Day weekend, one of the busiest travel times in the United States in years past, traffic in the private jet industry was 58 percent of the volume from the same time last year, according to Argus, a company that tracks aviation data. But commercial flights fared worse over the holiday, plunging to 12 percent of the 2019 level.

Five weeks ago, private flights had fallen to 20 to 25 percent what they were the same time last year, said Doug Gollan, founder of Privatejetcardcomparisons.com, a research site for consumers. “Now to be back to 60 percent of pre-Covid levels shows the people who have access to private travel are getting back out there,” he said.

NetJets, the largest private jet operator in the world, is seeing a rush in interest from new customers, said Patrick Gallagher, its president.

“May is on track to be the best month of new customer relationships that we’ve seen in the past 10 years,” Mr. Gallagher said.

Competitors are experiencing the same rise. Magellan Jets has seen an 89 percent increase in new customers from mid-March to this past week, said Anthony Tivnan, its president. He added this was coming off a strong 2019, when the company’s revenue was up 34 percent from 2018.

Companies that carved out a niche with private international flights are also reporting an increase. Thomas Flohr, founder and chairman of VistaJet, which has longer range jets, said the company’s refueling landings in Anchorage, a major stop for transcontinental flights to Asia, were up 250 percent since the coronavirus outbreak.

“The number of fuel stops we had there in the last 60 days is unheard of,” Mr. Flohr said. “It was the East moving West, and then when the pandemic shifted, it was the West moving East.”

Unlike commercial airlines, the private jet industry sells its services by the hour. Private jets are faster and can fly directly to most airports, while flying commercial may involve connecting flights. Service providers make money by selling charter flights, jet cards with flight hours and fractional shares of jets and individually owned planes.

But as executives curtail their business travel during the pandemic, new wealthy fliers and existing customers are driving a private aviation boom. In some cases, they are actually flying and in others, they are stocking up on private flight hours. The desire is akin to hoarding toilet paper and flour at the start of the pandemic: The extra allotment provides peace of mind, even if it is never used.

“Everyone from boutique companies with five to six planes to NetJets is in a good mood,” Mr. Gollan said.

“There were a huge amount of people who had the wealth to fly private but never bought into the pitch of business efficiency,” he said, adding that wealthy people are now thinking less about the cost of flying privately then about the safety of flying commercially.

Marco Fossati, a member of the multibillion-dollar family that owns Star, the Italian food conglomerate, said he had little need to fly privately since he became less active in the family business. But the coronavirus caused him to rethink his plans.

“At this moment, with the Covid-19, if you can afford it, fly private,” he said from Miami, where he has been since the stay-in-place orders were issued in March.

Mr. Fossati’s stance illustrates a change from just a few months ago: The wealthiest are less concerned about the perception of flying privately.

Sentient Jet, a private aviation company that offers flight hours, reported that it sold 5,000 hours in April, or the equivalent of about $30 million in flying time, significantly more than the $25 million it sells in a typical month. More than 2,500 of those hours were bought by people new to private aviation.

Andrew Collins, chief executive of Sentient Jet, said three-quarters of his company’s flights since March had been by individuals and families, up from 40 percent before the pandemic.

ImageCredit…Julian Finney/Getty Images

Mr. Collins said he had not expected the increase. In the 2008 financial crisis, private flying fell off quickly and took years to rebound. But the current crisis was set off by health concerns, not the financial markets, and demand for private flying has continued.

In April, he expected to book 200 to 300 flight hours, but flight time was actually just under 1,000 hours. “We’re seeing 50 percent new customers,” he said, as people buy cards to use now or save for later.

Worries over the environmental impact of flying privately may have taken a back seat as well.

“Concerns about opulence and concerns about environmental issues are gone,” said Mr. Gallagher of NetJets. Many wealthy people put up with flying commercial because they had benefits like first class, TSA PreCheck and a status that allowed them various perks. “But now,” he said, “there are a lot of people out there who don’t want to fly commercial if they’re part of an aging population or have underlying health concerns.”

A person on the average commercial flight has about 700 points of contact with other people and objects, according to a recent analysis by the consulting firm McKinsey, but private flights have only 20 to 30.

For travelers concerned about the environment, the private jet companies offer programs to offset carbon emissions. Terrapass, which has partnered with Magellan, can calculate carbon offsets based on the size and age of a plane and where its flying. Magellan includes carbon offsets in jet cards greater than 50 hours.

New fliers may be driving some of the increase in sales, but existing clients are refilling their jet cards with more hours.

The Coronavirus Outbreak

Frequently Asked Questions and Advice

Updated May 28, 2020

My state is reopening. Is it safe to go out?

States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.

What’s the risk of catching coronavirus from a surface?

Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.

What are the symptoms of coronavirus?

Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.

How can I protect myself while flying?

If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)

How many people have lost their jobs due to coronavirus in the U.S.?

More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.

Is ‘Covid toe’ a symptom of the disease?

There is an uptick in people reporting symptoms of chilblains, which are painful red or purple lesions that typically appear in the winter on fingers or toes. The lesions are emerging as yet another symptom of infection with the new coronavirus. Chilblains are caused by inflammation in small blood vessels in reaction to cold or damp conditions, but they are usually common in the coldest winter months. Federal health officials do not include toe lesions in the list of coronavirus symptoms, but some dermatologists are pushing for a change, saying so-called Covid toe should be sufficient grounds for testing.

Can I go to the park?

Yes, but make sure you keep six feet of distance between you and people who don’t live in your home. Even if you just hang out in a park, rather than go for a jog or a walk, getting some fresh air, and hopefully sunshine, is a good idea.

How do I take my temperature?

Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.

Should I wear a mask?

The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.

What should I do if I feel sick?

If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.

How do I get tested?

If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.

How can I help?

Charity Navigator, which evaluates charities using a numbers-based system, has a running list of nonprofits working in communities affected by the outbreak. You can give blood through the American Red Cross, and World Central Kitchen has stepped in to distribute meals in major cities.

“We’re seeing members purchase larger increments, so someone at 50 hours is renewing at 75 hours,” said Mr. Tivnan of Magellan Jets. These fliers want to lock in availability for themselves and family members, should they need it, he said.

The prices are not cheap. Magellan’s entry-level jet card for a Hawker 400XP, which seats six to eight people, is $130,000 for 25 hours. For the 14-passenger Gulfstream 450, it’s $313,950.

But tax breaks are available. The CARES Act, the economic stimulus package passed in late March, waived the 7.5 percent excise tax on all private jet flights and hours bought this year. That savings adds up. The same 25 hours on the Gulfstream 450 would have been $25,000 more expensive before the tax break.

Owners who put their planes into chartered service can also take advantage of tax exemptions. The 2017 tax overhaul allows an owner who uses a plane at least 50 percent for business purposes to deduct the entire purchase price in the first year of owning the jet. But that business purpose could be putting the jet into the market for other fliers to use.

Experts caution, however, that the supply may catch up to the demand.

The price for chartering a plane to fly in the United States — as opposed to buying flight hours — is low now. A one-way chartered flight from New York to Los Angeles, for example, would typically cost around $30,000 for a jet that seats eight people, said Jean De Looz, head of Americas for MySky, which helps jet owners manage costs. But that has fallen to $12,000 to $17,000.

“Operators are trying to get some cash flow,” he said, so they are offering cheaper rates.

But there are only so many private planes, and the number of people who want to use them is growing. If more people buy planes outright, fewer will be available for chartered service.

There are fewer than 1,300 planes for sale built in the last 20 years — the time frame that banks use in financing the purchase of a jet. “The numbers are tiny,” said Dan Jennings, chief executive of the Private Jet Company, a brokerage firm.

Of course, that type of economic imbalance is predicated on commercial aviation continuing to be hobbled by health fears. Even now, a billionaire like Mr. Fossati is weighing his options to fly from Miami to Switzerland. He is waiting to see what safety protocols will look like for commercial carriers, but he has also asked for quotes to fly on a private plane.

“Chartering a plane for two to three hours is one thing, but over the ocean, that’s very expensive,” he said. “Being rich doesn’t mean you have to throw away money.”

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