Connect with us

    Hi, what are you looking for?


    The Private Fractional Jet Industry Set for a Prosperous Year in 2023

    Image Source: Dimitrije Ostojic / Shutterstock

    In the year 2022, the utilization of fractional aircraft flights soared to unprecedented levels, surpassing the growth rate of charter flights or wholly owned flights, as per the data sourced from ARGUS TRAQPak.

    Nick Copley, the President of SherpaReport, foresees that “The upcoming 12 months will be extremely bustling for the fractional market. Several pivotal trends that materialized in 2022 are influencing this scenario.”

    #1 –Increased Variability of Aircraft in Fractional Fleets

    Mr. Copley elaborates, “With a rising interest among private and corporate owners in the fractional sector, the requisites of fractional proprietors are diversifying owing to the expanding array of opportunities. Notable fractional entities such as NetJets, Flexjet, PlaneSense, Airshare, AirSprint, Volato, Jet It, Nicholas Air, and flyExclusive have initiated orders with OEMs for new aircraft slated for delivery in 2023 and shortly thereafter.

    He further highlights, “Flexjet, for instance, has integrated Gulfstream G650s into its fleet and has intentions to include G700s and super mid-sized jets like Challenger 3500s. NetJets, too, is enlarging its ultra-long-range jet collection by ordering Bombardier Global 7500s and 8000s, along with an additional order for 100 Phenom 300s during the pandemic period.”

    Various other companies like Volato, Jet It, PlaneSense, flyExclusive, and AirSprint are augmenting their light jet segments.

    “Rather than merely replacing aircraft, the fractional operators are diversifying their fleets,” mentions Mr. Copley. NetJets has set the goal of scaling its fleet to 1,000 aircraft by the conclusion of 2023 – up from 750 pre-pandemic figures. Flexjet is elevating its fleet from 160 aircraft pre-pandemic to over 250 by the end of 2022 and anticipates taking delivery of approximately 40 additional aircraft in 2023.


    #2. Reduction in Waitlist for Becoming a Fractional Owner

    Historically, the wait times to procure a new fractional share have ranged from months to years. However, with the integration of hundreds of aircraft into fractional fleets across the U.S., the opportunities to onboard more potential fractional owners into their desired aircraft are expected to amplify in 2023.

    “In general, smaller fractional providers offering compact aircraft have experienced shorter wait times,” elucidates Mr. Copley. “For instance, at NetJets, the wait for a fractional share in an entry-level light jet like a Phenom 300 previously extended over a year, whereas securing a share for a Pilatus PC-24 at PlaneSense would be notably quicker. Nevertheless, customers seeking large ultra-long-range jets might encounter limited choices at major fractional entities like NetJets and Flexjet. In the upcoming year, the wait times at larger corporations are predicted to shrink due to fresh deliveries and demand stabilizing. Hence, 2023 appears to be a favorable year for prospective fractional buyers.”


    #3. Introduction of Innovative Payment and Management Options to Attract Potential Fractional Owners

    Traditional fractional contracts encompass four payments: the initial acquisition, a monthly management fee, hourly usage charges, and miscellaneous expenses such as fuel.

    “Newer players in the airline sector have entered the market recently, exploring alternative structures to entice customers,” points out Mr. Copley.

    Examples include no monthly management fees (flyExclusive and Volato), rebates (Volato), limitless hours and days (Volato), leveraging the fractional ownership for pilot training (Jet It), program-based on days (Jet It and Airshare), and exclusive aircraft with dedicated crew (Flexjet Red Label.)


    #4. Embrace of Sustainability – A Vital Trend

    Customers who previously refrained from fractional or full ownership due to environmental apprehensions may find a partial resolution in 2023 and onwards.

    “The business aviation sector is cognizant of the imperative to bolster sustainability, and the fractional firms are actively participating,” informs Mr. Copley. “To varying extents, fractional companies are enhancing their utilization of sustainable aviation fuels (SAF), procuring carbon offsets, committing to become carbon neutral, employing book-and-claim practices, and curbing their ground emissions.”

    For instance, NetJets has pledged to purchase 3 million gallons of SAF (Sustainable Airline Fuel) while Flexjet offsets 300% of the carbon emissions from each flight. AirSprint, Volato, and flyExclusive have also initiated carbon offset initiatives. Due to the limited availability of SAF at most airports, a “book-and-claim” registry permits an aircraft to access SAF wherever feasible while another operator bears the cost and receives credit – some operators are adopting this approach. A few operators are also trimming their ecological footprints on the ground, such as AirSprint and NetJets. Lastly, some fresh aircraft additions come with an Environmental Product Declaration certifying their sustainable sourcing and manufacturing.

    “Albeit concerns about the fluctuating economy and escalating interest rates may influence the pool of potential fractional aircraft purchasers,” concludes Mr. Copley, “Fractional ownership is anticipated to sustain growth in 2023 and beyond. The count of ultra-high net worth individuals (UHNWI) is steadily rising globally, whereas commercial air travel is constantly besieged by frequent inconveniences and delays, especially more post-COVID-19. Consequently, those who shifted to private aviation during the pandemic are likely to persist, with an influx of newcomers expected. Leveraging these trends, the fractional approach is poised to attract more business in 2023, remaining a more economical alternative to outright ownership.”

    Image Source: Dimitrije Ostojic / Shutterstock

    You May Also Like


    The nineties was an era of wealth and extravagance, a characteristic that is excellently showcased in the high-performance cars manufactured during that period. This...


    The exclusive “Dual expos under one structure” are back at Mana Wynwood Convention Center in Miami, from Nov. 30 until Dec. 4, kicking off...


    Given the exorbitant prices of medical care in some nations, numerous individuals are opting to travel overseas for top-notch healthcare at more affordable rates,...


    Every one of us recognizes the significance of meeting our daily step quota for our overall well-being, but there are days when we feel...