Private aviation sees surge in business during coronavirus pandemic

published on July 13, 2020

Welcome back to the final roundlet's talk about one area of the travelindustry that's gotten a bit of a boostover these past few months in the midstof the coronavirus pandemic and that'sthe private jet business for more onthat

I want to bring in glenn gonzalez he's ajedi founder and ceo and glennuh we've heard from a number of the bigairlines people obviously are not liningup to get backon commercial flights so what has

Demands been like for your business andi guess how big of an uptick if at allare you seeing in peopleinterested in who can in flying privatesure our demand has been exceptional westarted out the pandemic we were down to

About 20 percent of our normal activityhowever shortly thereafter things pickback upwe're currently from a sales standpointwe're at 300 percent of where we wereyou're uh 300 up year over year from

Where we were last yearuh our activity is back to its normalrates and our charter activity we'veexceeded ournormal charter activity by about 40 aswell so

Uh our activity is back to its normal uhposition so you're exceeding the normaluh charter activity by 40 percent it'sup 300year-over-year are you having trouble atall keeping up with that demand have you

Increased your fleet or have you thoughtabout increasing your fleet increasingyour head count i guess how are youdoing thisyeah sienna we it started out thepandemic with a plan to grow and to

Catch up in the industryin particular we've been growing veryquickly but we'vecompleted an order for another 10airplanes wehave partnered with the honda aircraft

Company and the honda jetso our opportunity in the industry wasto recognize the growthand fill the gap in the market and we'regrowing and we're covering all of ourneeds in the process

And then glenn think about your mix ofcustomers between i mean i guess there'sno corporate customers right now or aretherecorporations who are sending executivesaround on your flights and um are you

Seeing morepersonal use of aircraft uh this yearthan you have in the pastgiven the dynamics we're seeing uh kindof broadlyyeah miles we have been very busy

Flying individuals corporationsbut mostly our target segment of themarket are the small and medium-sizedbusiness ownersbut the people who have to be thereoftentimes you have the large

Corporations they may have an executiveand have support and backup but in ourspacewhat we found is those small andmedium-sized business owners in order tokeep

Their business moving they can't missthat next meeting they can't missthat next supplier discussion so theyhave to be there but they also want toget back home to their familiesat the same time from a recreational

Standpoint when they're not flying forbusinessthey're flying their families they'regoing to meet with their parents we'vehad some of our ownerspick up their family members fly them

Home so that they can be closer to themwhichis very emotional and touching to us asa firm to be able to provide that levelof experience to our ownerscan you elaborate on that a bit i mean i

Imagined to miles this point you've gotsome new customers that have come onboardthat there's a certain threshold i thinkfor people to be able to afford thesekind of flights but

Um there's a lot of concern with thesecommercial flights how packed in theyareyour safety how has that acceleratedsome of your growthyeah it it really has as i mentioned

We're 300 percentuh above where we were from a salesstandpoint as far as selling our sharesabove where we were this quarter lastyear werecently closed a share it's mostly

Compressed the sales cyclethose people who were on the fencebefore have reallystepped up and made the decision a lotfasterour most recent share family young

Entrepreneur a couple of children andthose individualsthey didn't want to expose their familyto the myriad of touch pointsand exposure that could put them at riskso they bought into our program

How do you differentiate yourself i meanthere's a lot of competitors out therewe've talked to netjets in the pastwe've talked to wheels upso when there are so many other optionshow do you stay competitive in this

Spacesure uh it really is a challenge and ithink the biggest part of that sienna isthe simple fact that we fill a gap in amarket thatnetjets in we're focused on the regional

Travelerand with that said we can do soat a lower price point our owners areflying for hundred dollars an houruh which is very tough for anyone elseto compete with to have

An entire aircraft private jet availableto youalso with a high level of touch andconcierge available to you at all timesand glenn what about just since we're inthe midst of this pandemic obviously

People are very concerned aboutcleanliness and also their safetywhen they do abort any type of aircrafteven when it's private so how have youchanged or have you changed yourprotocols at all

Yeah we we have worked with some outsidecompaniesin particular company here in thegreensboro triad areato teach us how to deep clean anddisinfect our aircraft

Really that's the only thing that'schanged about our serviceof course we deep clean our airplanesmore often we cleanthe aircraft and disinfect them beforeand after every single flight whether we

Have passengers or notbut the rest of our business is the samewe're a private solutionit's fast it's smart and it's costeffective and it just makes sense forthe regional traveler

Hey glenn for anybody who's watching andwonderingi wonder if i can afford a private jethow much does it costsure well the main thing is we are afraction of the cost because you're

Buying a piece of the airplaneum and with the current administrationthey've offered some great taxincentivesto help those individuals who are usingthe aircraft as a business tool

In addition to that though when you'reflying for only sixteen hundred dollarsan hourwhat we found is we're about one-fifththe cost of the normal fractionaloperators

That are in the marketplace so how muchfor a 1000 mile flighta thousand mile flight you're talkingabout three hours uh three hours it'sabout five thousand dollarsand it's the whole airplane for that

Flight new york to south florida is aperfect example for what you're askingrickand we do that consistently we've got alot more flights nowflying out of florida back up to new

Yorkwhich is typical for this time of yearmiles maybe you should fly to ohioi already paid for the rental rickrental carprivate jet it was a hard decision but

Miles had to make it all right glenngonzalezgreat to have you on the show ceo andfounder of jedi thanks so much for uhjoining usthank you so much everyone hey investors

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