China’s Wealthy Entrepreneurs See Value of Private Jet Charter
In China, just as it was for many years in the US and Europe, owning a private jet was seen as the ultimate status symbol. More recently, however, just as high-net worth individuals in other countries have come to realize, China’s young and wealthy entrepreneurs are realizing the value of chartering, rather than owning, private jets.
This change in thought is being driven by convenience, savings and an increased scrutiny of expenses by investors in China’s burgeoning high-tech companies. Speaking to the South China Morning Post, Ian Moore, Chief Commercial Officer with VistaJet, JetSmarter’s new parent company, said, “In Asia, the private aviation market is still new. Entrepreneurs here are happier using their personal wealth flying privately and less accepting of putting on those costs as their company expenses. This stands in contrast to the US, says Moore, where owning a private jet that flies the entire team is simply part of “doing business there.”
Moore said that private jet charters and by-the-hour rentals such as those offered by VistaJet, can be a quarter of the expenses associated with owning a private jet, which includes costs such as acquisition and maintenance, hanger space, insurance, fuel, and crew salaries.
Private Aviation is Taking Off in China
The private aviation industry has been growing in leaps and bounds in China, largely due to the fact that China’s rapidly growing digital and high-tech economy has generated a pool of wealth among entrepreneurs in their thirties.
Even though the private jet chartering market in Asia is still in its infancy when compared to the US, growth from the region, including Greater China, has been on a par with the overall global market. According to Moore, private jet charters in China have seen a 25% increase in flights over a year ago.
In addition, said Moore, more Chinese tech companies are going public, which has added additional demand for corporate governance and financial diligence. That increased scrutiny of expenses, makes chartering far more appealing than purchase of a corporate jet.
Keeping Pace With the Expanding Markets in Private Aviation
At JetSmarter we are doing our part to serve the growing market for business aviation.
In fact, the growing Chinese and Asian market for a shared alternative to jet ownership for private aviation, is one of the things that attracted VistaJet’s CEO Thomas Flohr to JetSmarter.
“This acquisition is an important milestone for Vista Global, accelerating and executing our vision of digitizing the entire private aviation offering. Customers today want speed, reliability and value, which in today’s world is only possible with technology,” said Flohr when he announced the acquisition.
“Vista Global’s reach and infrastructure will take JetSmarter to the global stage to fully realize its potential. JetSmarter’s technology will digitize Vista Global’s market-leading customer offering to program members and on-demand customers.”
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JetSmarter may offer a number of programs including whole aircraft charter, for which JetSmarter will act solely as your agent in arranging the flight, and Public Charters, for which JetSmarter will act as principal in buying and reselling the air transportation. JetSmarter does not own or operate any aircraft. All flights are performed by FAA-licensed and DOT-registered air carriers.