Athletes, technology innovators, CEOs, and celebrities all have places to be. Rather than flying commercial and having to worry about everything from adoring fans to flight delays, these moguls take to the skies in their own jets. But what models are they flying around in? Who’s stepping aboard a jet with extravagant customizations, versus flying a stock plane to and from their destinations? We’ve put together a list of some of the most famous names and their jets of choice!
Technology founders who fly in style
Back in 2002, the late Steve Jobs owned a Gulfstream V designed for 15 passengers. Although Jobs was a billionaire in his time, the former Apple CEO didn’t buy the private jet himself. Apple gifted it to him along with 10 million company shares in place of a salary increase. After Jobs passed away, product designer Jony Ive purchased the jet. Ive was the person who helped Jobs design the plane.
Richard Branson, founder of Virgin Group, owns a Dassault Falcon 50 EX. He prefers flying in this plane instead of his Falcon 900 EX because it’s more suitable for travelling to Necker Island, his Caribbean resort. However, sometimes he ditches his private jet for a commercial flight. Branson owns Virgin Atlantic and sometimes rides with the airline’s passengers.
A military fighter jet is among some of Larry Ellison’s more eccentric purchases. However, the U.S. government has forbidden Ellison from flying over the country in his beloved Soviet MiG-29. It’s classified as a firearm!
John Travolta courtesy cyloop.com
Celebrities buy luxurious private jets — or not
Bill Gates takes to the sky in a Bombardier BD-700 Global Express that seats up to 19 passengers. He reportedly uses it for business-related trips, and for good reason. When an important business venture is on the line, you must put your time and energy into sealing the deal — not booking commercial flights.
Oprah Winfrey vowed decades ago that she’d one day fly in her own private jet. This decision was spurred on by a rude encounter she had with someone at an airport who claimed to be a fan. That was back in the 90’s. Nowadays, she gets all her traveling done in her jet worth approximately $42 million dollars.
Many celebrities could easily charter a private jet; however, some choose the normalcy of a commercial flight. Priyanka Chopra regularly shares an airplane with the rest of us. Although she doesn’t fly coach, she still experiences the typical delays and annoying passengers associated with commercial flights. The Bollywood star once said she enjoys people watching, which you can’t get at a private terminal.
Floyd Mayweather courtesy hotcars.com
Athletes spending the big bucks on air travel
Michael Jordan’s private jet holds true to his brand. The jet was recently upgraded with a paint job designed to make it look like a flying sneaker. Such a modification makes sense — what else would you do with a billion-dollar net worth?
UFC star Conor McGregor also flies in style with his private jet. This large purchase came on the heels of a 100 million-dollar check from his fight with Floyd Mayweather. From business trips to vacations, McGregor’s private jet appears to be his plane of choice.
Celebrities and billionaires often splurge their net worth on a private jet, sometimes even collecting an entire fleet!
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
COVID-19 has hit the private aviation industry hard — particularly charter companies. Overlooked by the CARES Act and other aviation stimulus packages, regional charters have had to fend for themselves in an environment where air travel borders on taboo. With planes grounded and staff furloughed, it’s hard to find consistent revenue. But that hasn’t stopped some of the industry’s foremost players from tugging on their bootstraps.
Here’s a look at some of the strategies private charter companies have adopted to combat the effects of Coronavirus, and what they mean now and post-pandemic.
The cost of flying has plummeted dramatically
For many private aviation companies, the key to attracting new customers has been slashing the costs of their jet cards. Thanks to coronavirus legislation, customers no longer have to pay the 7.5 percent Federal Excise Tax (FET) on their flight hours. This saves customers tens of thousands of dollars, making it easier to justify maintaining or even purchasing jet cards in the current climate.
In addition to not charging FET, many charters have lowered their hourly rates by 7.5 percent. However, companies like Sentient Jet is going the extra mile and reducing deposits for their jet cards as well. NetJets has similarly reduced their 25-hour membership by 11 percent. Reduced jet card prices and tax-free flying are unique offers that are hard for opportunistic flyers to pass up.
Some charters discovered they can attract new customers by offering cheaper on-demand flights. JetSuite is offering new customers a one-time flight at the reduced price previously available only to members. This promotion resulted from a surge in evacuation flights back in early March. Then, people were using private jets for the first time. This new desire to fly privately is letting charters like JetSuite get their foot in the door.
Charters are weathering the storm
The spike in demand for private jets has passed. Now, charters are trying to make the most of their current economic situation. To keep the industry afloat, Jets.com is now offering a 10-hour jet card that allows flyers to refund unused hours. That way, flyers can use private jets on an as-needed basis with zero commitment.
This 10-hour deal comes with all the perks of your typical jet card. Customers can book flights at the drop of a hat with fixed pricing and won’t have to pay repositioning fees. On top of that, they’re guaranteed a replacement jet for delays unrelated to weather.
Other than discounted jet cards, charters are hoping to receive state and federal aid. Though, as of right now, the U.S. federal government has prioritized commercial airlines.
Private aviation has a bright future
Private jet operators such as flyExclusive are confident the private aviation industry will make a strong comeback after the COVID-19 pandemic. Even after countries lift their travel restrictions, flyers will seek private jets to avoid crowded commercial airports. The fear of contagion will long surpass the duration of the pandemic.
Once life slowly returns to normal, flyers will rush to book flights for all their postponed business ventures and personal plans. They’re sure to have some unused hours left on their discounted jet cards. And if that’s the case, flyers will certainly choose a private jet over a commercial airline still tainted with the stigma of COVID-19.
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
In what was set to be one of the largest aviation deals ever, Boeing has decided to walk away from finalizing its $4.2 billion deal with Brazilian jet maker Embraer. The companies planned to form a joint venture on April 24 — but that date has come and gone without a deal.
According to Boeing, “Embraer did not satisfy the necessary conditions” of the deal. On the other side, Embraer accused Boeing of backing out of the deal through use of false claims. Embraer believes Boeing is unable to close on the $4.2 billion deal due to financial conditions caused by its 737 Max fiasco and other business-related factors.
A missed opportunity for both companies
While claims are vague on what caused the deal to fail, this much is certain: Boeing and Embraer both lose without a deal. The deal would’ve awarded Boeing control of over 80 percent of Embraer’s commercial flight operations. This incentive to sign the contract would’ve given Boeing airplanes at a cheaper price and significant leverage in the private aviation industry.
On top of that, a partnership with Boeing would have provided Embraer support against Bombardier, one of their competitors. Bombardier recently linked up with Airbus, and the failed contract would’ve boosted Embraer above them both. Even though Embraer itself leads the manufacturing of small jets, Boeing would’ve added indispensable value to their business.
Potential reasons the deal fell apart
There are a few possible explanations for why Boeing backed out of the deal. For starters, they’re not immune to negative effects from the COVID-19 pandemic. The aviation industry has taken a direct hit due to the economic freeze. In the midst of financial crisis, Boeing likely doesn’t have the cash to fulfill the $4.2 billion deal with Embraer. That’s the most probable explanation, and it explains Boeing’s tight-lipped responses thus far.
When asked why the company turned down the deal, Boeing representatives were vague at best. The company won’t release details concerning how badly it needs to keep that $4.2 billion in its pockets. Regardless, the deal between the companies contained a clause that stated it would be completed regardless of the status of the pandemic. Boeing’s obfuscation is likely a way to circumvent that clause.
Another theory surmises that Boeing pulled out of the deal due to political tensions. Some speculate the aviation companies weren’t a good fit, particularly due to recent spats between governments.
Boeing appears to be at fault
Boeing attempted to justify backing away from the deal by claiming Embraer failed to meet certain conditions. However, the company didn’t cite anything specific. Meanwhile, the U.S. company violated multiple points outlined in the contract by terminating it sans clear examples. As a result, Embraer is seeking compensation from Boeing.
How the situation will resolve itself remains to be seen. Will Boeing find a new partner in the private aviation sector? What recourse does Embraer have in seeking damage remediation? What is certain is that Boeing’s actions have deemed the company an unreliable business partner during the current economic crisis.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1 (305) 754-3313, or visit us online.
Vertical Take-Off and Landing (VTOL) aircraft aren’t novel; yet there’s been more buzz than usual about these aircraft in recent years. Now, in 2020, several companies have trotted out prototypes for single- and multi-passenger VTOLs in the hopes to capitalize on what they think will be a brand-new market segment: Intrastate air travel.
Take a commute like Washington D.C. to Baltimore, MD. It’s an hour by car on the Washington Parkway — or as much as 90 minutes with traffic. Yet, it’s a distance too short for chartering a jet. Helicopter travel is an option, but not one that’s widely accessible. Through all these variables is where you’ll find the addressable market for VTOLs.
VTOLs offer lucrative benefits
Private aviation companies have their eye on VTOL prototypes as a segue into unlocking the lucrative possibilities for rapid intrastate travel. Because VTOL aircraft take off and land from a standstill, there’s no need for a runway — which means no need for airfield crews or terminal rentals. Unlike private jets and conventional airplanes, VTOL aircraft can go just about anywhere.
There’s also broader access to passengers to consider. With a private jet, passengers must be at a jet-friendly location to fly. Juxtapose this with a taxi, for example. Which generates more revenue in a day? Week? Monthly? With VTOL aircraft, travel distances may be shorter, but that only makes them more accessible and in-demand. All this, without flying from one airport to the next.
Finally, VTOL technology allows private aviation companies access to various aircraft designs, which may be more lucrative investments. When people hear about VTOL aircraft, they often visualize helicopters, powered with rotary wings. However, companies like Boeing have begun to push the envelope on what VTOL aircraft can look like. The Bell Boeing V-22 Osprey, for example, has VTOL capabilities but uses fixed wings during flight.
Source: bellflight.com
Here’s what the future of VTOL looks like
VTOL prototypes come and go, but the latest crop of contenders looks more promising than ever before.
Canadian aerospace producer WatFly announced plans to begin producing its Atlas VTOL next year. The craft runs on electricity, emitting zero pollution, which has piqued the attention of flyers with cognitive dissonance surrounding the current spotlight on jet emissions. The Atlas seats one person and WatFly claims it’s easier to operate than a car. The craft is currently only approved for recreational use.
Market adjacent is Jaunt Air Mobility, with its Journey VTOL. The craft takes off like a helicopter and flies like an airplane — similar to the hybrid performance of the V-22 Osprey. According to Jaunt, its prototype is 63 percent quieter than helicopters, with LevelFly technology for stable take-offs and landings. The company has its eyes set on the up-and-coming intrastate commuter industry.
VTOL is the new way to get places
In the coming years, companies like Uber will transform how urban dwellers travel in the city. Getting stuck in LA’s bumper-to-bumper traffic will be a thing of the past. VTOL craft have the potential to bring taxis to the sky.
VTOL aircraft will save passengers hours of commuting time on interstate roads. Uber air taxis and other future aircraft will skip over traffic jams and offer the fastest route between locations. The biggest selling point? Once VTOL craft hit the market, intrastate travelers will take to the sky simply for the novelty of it — then stay for the benefits.
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
The world is on lockdown due to COVID-19 and the private aviation industry is just beginning to weather the hardship. For those thinking about becoming a private jet owner, now might seem like the time to take a defensive stance. But it’s actually quite the opposite. Now’s the time to think about buying and becoming a jet owner. It seems counterintuitive, but the prevailing factors governing the industry right now show strong signs of a buyer’s market.
Take a look at five of the best reasons to move on your purchase of a private jet right now, instead of waiting for the dust to settle on COVID-19:
There’s ample supply of used jets.Trump-era tax cuts have lowered the cost of acquisition and ownership for private jets, which has enabled companies and high-net-worth individuals to make the upgrades they’ve been putting off. In doing so, the secondhand jet market has taken off! Right now, there’s an ample supply of used jets out there in great condition, available for affordable prices.
Cost of acquisition is low right now. Buying a new or used jet has never been easier thanks to the Trump-era tax incentives for jet ownership. Buyers can deduct the full value of a new or used aircraft on their taxes (2017-2027) via bonus depreciation. This lightens the fiscal blow of making a purchase and actually makes buying a private jet a smart move for those looking to increase their tax-advantaged position.
Diverse jet selection on the market. The strong economy of 2019, coupled with bonus depreciation tax cuts, has flooded the used jet market with late model options. Likewise, the last decade has seen the introduction of some truly game-changing jets that are sure to define the market for a decade more to come. There’s never been a better time to take your pick of aircraft — from the massive Bombardier Global 7500 to the lightweight Cessna Citation Longitude.
More sellers as people take defensive positions. There’s an old adage by investor Warren Buffet that goes, “be greedy when others are fearful; be fearful when others are greedy.” As panic about COVID-19 sweeps the globe, many people are acting irrationally. This means there are great deals to be had on buying a private jet! Brokers are seeing jet owners downsize in a hurry because that’s their first instinct — and they’re unloading high-quality planes for lower prices. For buyers, it means getting the jet you’ve always wanted, at a price you’re more than willing to pay.
ADS-B upgrade challenges. Despite having more than a year to become ADS-B compliant, jet owners across the private sector still haven’t made the leap. The last projected figures showed more than 1,660 business jets (23%) and 3,800 turboprops (49%) would lack compliance heading into 2020. Speculation is that these jets would likely come up for sale as owners pass the buck on paying for an ADS-B upgrade. For those looking to get a light jet or turboprop at a discount, ADS-B noncompliance might be your opening.
With more and more reasons to buy a private jet compounding, the market is set for a flurry of buying and selling activity in mid-to-late 2020. Regardless of how the COVID-19 pandemic plays out or what economic stressors persist, now is a great time to jump in on a private jet.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1 (305) 754-3313, or visit us online.
The service life of private jets can reach up to 50 years, or 27,500 flight hours. But that’s only with proper maintenance and the assurance your plane doesn’t encounter any major airworthiness issues.
All it takes is lackluster maintenance, out-of-date equipment, or even a particularly bad bird strike to keep a plane grounded. If enough problems accumulate, your aircraft’s end of life date may come well before it reaches the 50-year mark. It leaves you asking the simple question of what you can or should do with an aircraft that’s reached the end of its serviceable life.
Option 1: Sell it to someone else
Not every airworthiness issue is a death sentence. In fact, “airworthiness” is an extremely subjective term that’s only recently been defined in a legal sense, as “in a condition for safe operation.” A blown engine is a clear airworthiness issue, but under the recognized definition, you might argue that a defective seatbelt is as well. The severity of an issue doesn’t necessarily correlate to plane airworthiness.
Take the recent ADS-B mandate, for example. The cost to upgrade can vary based on the plane model and year. For some aircraft owners, it’s just not worth it. Non-compliance with ADS-B might keep them grounded, but it’s a problem someone else might be willing to make the investment in. Here, the natural solution is to sell the plane.
Likewise, an accumulation of squawks on an airworthiness report might give some owners a headache. They sell the plane to get any remaining value out of it, and pass it off to someone willing to make a moderate investment in its airworthiness.
Option 2: Sell it for parts
If your aircraft is truly down for the count, it may still have some life left to give — in the form of spare parts. The engines of a midsized jet can sell for up to $20,000 alone! In fact, engine parts and components represent about 90% of the value of a jet’s salable parts. This isn’t to say there isn’t value in other essential components, though. Cockpit technology, furniture, and landing gear all represent lucrative opportunities for resale parts.
What can a jet fetch if broken down for parts? Based on available data, a $12 million, 8-passenger, midsized jet sold in the 2000s might fetch about $100,000 if broken down into parts. It may seem like a minuscule return on investment — especially if you’re the original owner — but it’s better than declaring a total loss or spending that and more to remedy airworthiness issues.
Option 3: Scrap and recycle it
Let’s say your jet is a wash. An engine fire has destroyed the most valuable component of the plane, the fuselage is 30 years old, and the interior is nothing spectacular. It’s going to take hundreds of thousands to get it up and running again, and at this point you’d rather just buy a new jet. What do you do?
The answer is to scrap it and recycle it. This option involves selling off usable parts — which might fetch a nominal fee — and getting scrap value for the rest. Again, avionics and vital components tend to fetch good per-part rates. Additionally, cockpits and fuselages can be broken down and sold off for a variety of purposes, or recycled into their lowest common elements (usually aluminum alloy).
When it’s time to part ways with a plane, there are several options depending on the condition of the craft. The better the condition or the more viable the parts, the more opportunity to squeeze some small value from it before it goes.
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
The bill offers airlines just north of $60 billion in support loans and grants, in the hope airlines will keep their staff tenured and their operations afloat for the next few months. The problem? The bill is only inclusive to Part 135 operators, which leaves a majority of the private aviation sector (Part 91) to fend for itself.
Commercial aviation’s bailout
The funds appropriated to commercial aviation via the CARES Act are akin to the bailouts given to the automotive industry in the Great Recession. The breakdown of the $61 billion is really split into two forms of aid. First, there’s $29 billion in loans and loan guarantees for air carriers, Part 145 aircraft repair stations, and ticket agents. Then, there’s $32 billion in payroll protection grants for air carriers and their contractors. The two funds will prop up commercial aviation over the next several months.
In addition to direct funding, commercial aviation will also benefit from a provision offering “relief to air carriers from federal excise taxes that apply to transporting passengers and cargo, and the purchase of aviation jet fuel.”Airports and commercial aviation facilities also receive aid above and beyond the $61 billion allocated to operators, to the tune of $10 billion for large airports and $100 million for service facilities.
What about private aviation?
Language in the CARES Act leaves private aviation almost entirely out. The stimulus focuses on Part 135 operators and the roughly 750,000 jobs within the commercial aviation industry. Part 91 operators are, ultimately, left high and dry.
But business aviation is pushing for its own stimulus. In a joint letter to the Senate, top executives from across the business and private aviation sector called attention to the lack of support for BizAV and respectfully asked legislators to consider the impact of COVID-19 on long-term business. The letter states:
“We applaud your decisive actions to provide rapid relief during this crisis. As you consider the third relief package, we respectfully request that all air carriers, including air charter and fractional operators, be included as was the case in Air Transportation Safety and System Stabilization Act passed after the September 11 terrorist attacks. These companies are a vital part of our transportation network and serve as a lifeline for communities large and small throughout the country.”
The optics of a bailout
It’s widely speculated that BizAV was omitted from the CARES Act due to bad optics. The general public associates private aviation with wealthy extravagance and often fails to see its practical utility. Extending financial aid to the aviation industry as a whole — including private air charters — may have been seen as freewheeling by those already critical of the bailout.
Is it likely private aviation will get its own bailout? In the present climate, no. That said, there are provisions baked into the CARES Act that charter companies may be able to take advantage of — namely, the $500 billion allocated for big business recovery, of which any enterprise can apply for government assistance.
Economic downturn at the hands of COVID-19 is far from over, and it’s likely that the economy will languish long after the pandemic has passed. Private aviation, like all businesses, is in for a rocky time. While there’s no promising prospects for another aviation bailout, there will likely be opportunity for general stimulus as government continues to support the economy.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1 (305) 754-3313, or visit us online.
Nothing brings an economy to a grinding halt like a global pandemic. Border closures, travel restrictions, and shelter in place decrees like we’re currently experiencing are unprecedented. Not since 9/11 has aviation seen such a dramatic grounding of planes. And by all accounts, we haven’t yet hit the apex of the COVID-19 pandemic.
In the early days of its spread, the virus actually propelled BizAV to unprecedented levels of demand as people chartered jets to escape airports, get home, and travel in isolation. But now, even business jets sit idle on the tarmac. BizAV is in for a rough spring and summer, and the industry is bracing itself for sharp downturn.
Shutdowns loom over private aviation
Stopping the spread of COVID-19 has called for increasingly stringent sheltering. Domestic travel is nearly at a standstill as most of the country abides by stay at home orders. Moreover, international travel to and from major economic hubs just isn’t possible right now due to closed borders and stringent travel guidelines. Currently, flights from 26 countries are barred from entering the U.S. alone, with similar countries following suit. All told, as many as 500 transatlantic flights were prevented in March.
But the downtrend in travel isn’t the only thing hurting BizAV. Business aircraft factory closures are stifling the industry as major manufacturers like Textron, Bombardier, and Embraer close their doors and furlough staff. This looms heavy over private aviation, indicating new jet deliveries and announcements may be delayed even after the economy regains its footing.
The numbers indicate turbulence
Aviation data analyst WingX has tracked the status of business aviation charters throughout the spread of COVID-19. They found decreases that may have been much worse without the initial surge of demand as countries began declaring a state of emergency. WingX data from March shows:
U.S. business jet flight activity decreased by 21%.
Flight activity was 25% lower for Europe and Asia.
Italy saw a 70% reduction in business flights.
France saw a 43% reduction in business flights.
Germany and Switzerland saw a 30%+ reduction in business flights.
WingX also compiles detailed flight data about the length of charters and the plane itself. According to the organization’s most recent report, “all aircraft segments have seen severe declines.”
Some charter companies like Jet Linx and VistaJet have begun offering heavily discounted jet cards to customers as a way to bring new interest into the industry. Other private charter companies have leaned into civil service. Charter providers JSX and JetSuite have helped repatriate more than 100 U.S. citizens stranded abroad. Private Jet Services Group has similarly helped more than 11,000 students, athletes, executives, and families get home. Even more providers have offered up service to transport medical equipment and supplies regionally.
There’s no doubt BizAV will survive the downturn brought on by COVID-19. But it could be some time before private aviation gets back up and running with vigor. Until then, manufacturers, brokers, flight crews, jet owners, and travelers will all wait with bated breath.
The expert jet brokers at L & L International are here to help you acquire the perfect jet. Need to sell your jet? We can assist with that, too. Contact the private aviation professionals online, at sales@L-Lint.com, or at +1 (305) 754-3313.
When we think of jets, most of us picture the same typical airframe. Wings, empennage, cockpit, engines, and a fuselage are all basic building blocks. But what if you took away, say, the fuselage? What kind of jet would it be? It’s hard for most people to imagine a plane that looks so different or one that’s even airworthy. But the fact is, flying wings have been around for a long time, and they might get their due in private aviation sooner than you think!
Source: horten-aircraft.com
The constant search for innovation
Aircraft manufacturers are pushing the envelope for upcoming jet designs. Passengers need to arrive at their destination faster, so they’re creating models that are efficient. Manufacturers also are hopping on the sustainability trend, which means electric and hybrid drives are in the near future. To achieve an efficient, sustainable aircraft, innovators are beginning to delve into new territory.
Flying wings have been around since the 1900’s but remain widely unused in the private aviation industry — until now. Horten is test flying their HX-2, which has no fuselage and is all flying wing.
Benefits of flying wings
It’s bizarre to imagine jets without a fuselage. However, the private aviation industry is entertaining the idea. Horten’s HX-2 has low aerodynamic resistance due to the lack of a fuselage. Because of this, it can traverse greater distances in a shorter amount of time.
The HX-2 also has more room for propulsion technologies. The flying wing design is perfect for adding the anticipated hybrid drive that will make flying more eco-friendly. In short, flying wings like the HX-2 are key to making private aviation more efficient and sustainable. The HX-2 is still in its testing phase, so pilots must wait before they can get their hands on it. The anticipation is a good sign that they have a tangible place in the future of private aviation.
Source: horten-aircraft.com
Why don’t airlines use flying wings?
Flying wing models began in the early 20th century but weren’t intended for commercial use. Different militaries had their own take on the flying wing, most being experiments that didn’t make the cut. In 1933, the USSR had the Stal-5 but abandoned the model due to poor stability. Likewise, the American N-1M was too heavy and underpowered to make it off the ground.
However, some commercial airlines attempted to get flying wings into the mainstream. In 2007, Boeing introduced the X-48 to airline passengers. People didn’t enjoy the plane’s internal design, so it became yet another military aircraft. But flying wings could make a comeback in the private aviation industry with Horten’s HX-2. It seats only two people right now, but the company plans to make it a multi-seated jet.
Flying wings aren’t the most aesthetically pleasing jet, but they’re highly efficient and sustainable. The aviation industry has been looking for ways to make jets eco-friendly, so we may see a rise in flying wings.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1 (305) 754-3313, or visit us online.
The private charter industry has always been an arms race for market share. Now, regional charter provider Wheels Up has issued a challenge to its closest competition in the form of an acquisition. Wheels Up has purchased Gama Aviation for an undisclosed sum. The deal makes Wheels Up the second-largest private aviation provider in North America, rapidly closing the gap between itself and its prime competitor, NetJets. It’s a move many analysts believe to be a power play for market share as the industry continues to consolidate.
Terms of the acquisition
We know little so far about Wheels Up’s acquisition of Gama Aviation. However, Wheels Up now has the largest Part 135 operator in the U.S. among their fleet. This is a huge addition to last year when the aviation company acquired Delta Private Jets and Travel Management Company, which are significant Part 135 operators as well.
With the Gama Aviation acquisition, Wheels Up now has more than 300 jets. In 2019, the number-two aviation company beat Flexjet with more than 160,000 flight hours. These impressive figures mean Wheels Up is aggressively ramping up its arms race with NetJets.
Despite the acquisition, Gama Aviation will continue business as usual. Tom Connelly, current CEO of Gama Aviation, will oversee operations from their headquarters in Shelton, Connecticut. As a newly acquired subsidiary, Gama Aviation employees may enjoy opportunities to grow their career within Wheels Up. Keeping staff indicates Wheels Up might not be done making moves.
Major players are teaming up
Gama Aviation by itself is a behemoth in the private aviation industry. They control their own massive fleet while offering aircraft management to other companies. Since Wheels Up’s founding in 2013, Gama Aviation has been the sole operator of Wheels Up’s King Air 350i, Citation Excel/XLS, and Citation X airplanes. The consolidation makes sense.
With the acquisition of Gama Aviation’s versatile aircraft services, Wheels Up has become a powerful force in the private aviation industry. They have everything from the largest fleet to aircraft management. Gama Aviation allows Wheels Up to expand their reach and provide private flights for all types of customers.
Transformative benefits of Gama Aviation
Before the Gama Aviation acquisition, Wheels Up focused primarily on small private jets. This was a lucrative business move; most private flights last only about two hours. With Gama Aviation, Wheels Up has it all. Customers can choose from the budget-friendly King Air or the massive Gulfstream G650. The company now caters to all passenger needs with their expanded fleet.
Wheels Up is coming up fast behind their primary competitor. The company’s focus on expanding both market share and capability shows it’s not content with being number two. If NetJets doesn’t play their cards right, Wheels Up could steal the title of number one private aviation company in the world.
Contact the experts at L & L International if you need assistance acquiring or selling a private jet. You can reach our sales specialists today at sales@L-Lint.com, call us any time at +1 (305) 754-3313, or visit us online.
Michael Jordan’s private jet holds true to his brand. The jet was recently upgraded with a paint job designed to make it look like a flying sneaker. Such a modification makes sense — what else would you do with a billion-dollar net worth?
