Current State of the BizJet Industry
After a large increase in bizjet/private aviation demand at the start of the coronavirus, people thought that this industry would be the one to survive through this pandemic. People from all over the world flocked to private jet companies in order to travel safely to get back home to loved ones. However, now that everyone is told to stay put, there are becoming less and less bizjet flights. Since the demand as leveled off, and now at a decline, there are a lot of companies who can no longer afford to fly. Many questions have arisen, trying to figure out what will be the future of the bizjet industry.
Currently, many companies have shut down, grounded their aircraft fleet, or only taking on certain round trip flights. Even larger companies like JetSuite are feeling the effects of this virus, who decided to ground their fleet recently. Most of these companies have tremendous overhead and extreme operating costs. If bizjet companies can no longer fly, they can no longer pay pilots, pay maintenance workers, or pay essential staffers. Also, many companies cannot supply flights at the ever-lowering cost. Private flyers can demand a lower price on flights since many operators are willing to fly no matter what. These pricing cuts have put a lot of bizjet operators currently out of business, leaving larger companies to fight over the few flights out in the market.
There is no telling when all of this will end, but the people who thought that the bizjet industry would be immune to the COVID-19 pandemic were wrong. When all of this is over, demand for private flights will increase again eventually, however, we will see which companies are left standing.