The world of private aviation is booming, with chartered private flight and private jet ownership more popular than ever. Obviously, you still need plenty of money to fly private, but the market is thriving as it becomes the method of choice for the wealthy, as first-class commercial flight takes a back seat.
Now, as far as start ups go, building your own private aviation business stands out as one of the more daunting, but what if you were to try it? Here are four things that should be on your mind.
Market analysis
The beginning of any good business starts with a detailed and thorough market analysis, and private flying is no different.
Take an in-depth look into both the private and commercial aviation market. It’s important you understand what trends are occurring in your region, as well as the traffic growth and plane requirements for the sector. What are your competitors offering in terms of their package? What price points, facilities and flight routes are available?
Essentially, your market analysis should help you identify where exactly to attack the market.
Brand positioning – target market and location
While private jets are still very much a vehicle for the top end of society, they are beginning to branch out to more than just ultra-rich oligarchs and A-list celebrities. XOJET, for example, is a more “value focused” private charter company. Now, “value” is, of course, all relative, but there is no doubt that the target market for the industry is expanding.
Thus, your brand positioning matters. Once you have your market analysis, you should know where you best fit in the regional market. Is that with the ultra-premium top spenders or better directed towards the new customer base filtering in at the bottom of the bracket? Do you want to appeal primarily to wealthy individuals or high-profile businesses? Do you wish to be membership or single transaction based?
Your location matters as well. Unsurprisingly, much of the private aviation industry finds its success out in the middle east, home to an exceptionally wealthy demographic. Where you position your brand, both physically and in the market, will be intrinsic to your success.
Money, money and a bit more money
It should come as no surprise to you that, if you wish to enter one of the most luxurious markets in the world, your start up capital needs to be nothing short of gargantuan. Private aviation is as much about the aesthetics and experience as it is about function – nevertheless, all must be to the absolute highest standard.
The inventory of a private aviation business is significant, to say the least. Even if you’re starting out with a single plane as a one-man band, the cost of the plane, licencing and training alone will cost serious money. For reference, the new Bombardier G7500 – one of the darlings of the current and future small jet market – comes in at a cool £72 million per unit, and is sold out for the next two years as numerous businesses snap them up.
Scale up, and you have all sorts of staff, servicing and brand management issues to be concerned with. Make no bones about it – it takes some investment to begin such a business, even at the lower levels.
So, where do you begin when it comes to starting an aviation business? The answer, to start with, is not too different to any other. Do your market analysis, understand your competition and find your USP, and you’ll have an excellent starting point for your brand.
From there, it’s just a matter of finding the money which, in this case, will no doubt be your biggest challenge of all.
