The world is going global, particularly top CEOs, investors and Ultra High Net Worth (UHNW) families. However, most private jet programs remain a patchwork of coverage with significant fees when customers want to fly outside their service areas. VistaJet is taking another step to fulfill its goal of providing a truly global prepaid private jet program. The company, which operates over 70 Bombardier Global Express and Challenger private jets, is eliminating ferry fees worldwide. An announcement is expected next week at EBACE, a large private aviation conference held annually in Geneva. Australia and South America were two places the Malta-based operator was charging the ferry fees. The move will have a significant impact as it tries to attract more global companies and Super Rich customers to its programs.
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VistaJetVistaJet's Thomas Flohr wants to offer CEOs and UHNW families a global private jet solution.[/caption]
Ferry fees are where a customer has to pay to reposition the aircraft before or after their flight. Having to pay to have a plane pick you up in Sydney or to fly back to its base after dropping you in Buenos Aires can easily range over $100,000. Previously VistaJet program customers would have to price out each trip factoring in whatever ferrying fees were required. Because the fees can be significant, customers then would likely contact other private jet operators to get competitive quotes. Part of VistaJet’s pitch is that it enables customers to more easily budget their private jet travel compared to on-demand charter, where extra fees are a staple of the business. The announcement now eliminates ferry fees worldwide.
“When you call a taxi, you don’t worry about paying for its journey to you. Today’s entrepreneur or business executive will be flying to America one week, Asia or South America the next, and Europe in between, so it’s become critical to offer them a truly global service. The sustained investment we’ve made for the past 13 years has been calculated to ensure we can offer our customers something completely ground-breaking: one-way pricing around the globe,” said Thomas Flohr, VistaJet’s Chairman and CEO. He added, “So along with knowing that our customers will only pay for the time they are in the air, when they fly with us they know that they will receive the very best service, with everything tailored to their specific needs.”
Getting rid of the ferry fees won’t enable VistaJet to sell domestic flights within Australia or countries in South America, however, it will still save customers money. As an example, if a customer wanted to make a trip starting in Beijing, stopping in Sydney, then traveling to Perth before returning to Beijing, before the move, that customer might have had to pay ferry fees for the plane that dropped them off in Sydney and the plane that picked them up in Perth in addition to their normal hourly rate. They would also have to pay for a charter between Sydney and Perth. Now, in addition to flight charges to and from Australia, their only additional costs would be for the charter from Sydney to Perth, which VistaJet arranges with an Australian operator that meets its standards.
In terms of business travel, key industry segments for Australia include Metals and Mining, Industrials and Materials, Financial Services, Asset Management and Healthcare. For South America, the new policy opens up for VistaJet more customers in Energy and Infrastructure, Mining, Investment and Financial Services, Real Estate, Telecommunications, and Media and Broadcasting.
According to the company, last year it took delivery of 15 new private jets, enabling it to now have sufficient coverage to waive the ferry fees. VistaJet officials couldn’t say how much business they expect to pick up as a result of the announcement that will first impact new program customers. Existing customers will be given the opportunity to add South America and Australia to their service areas. While there is a surcharge for flying to and from the two destinations, having a contracted rate means customers no longer have to worry about wildly varying ferry fees.
