Latest news with #NetJets
Forbes
18 hours ago
- Business
- Forbes
NetJets, Flexjet, VistaJet Executives See Plenty Of Room For Growth
After two years of small declines following record demand spurred by the COVID-19 pandemic, which peaked in 2022, top executives from the world's largest sellers of private jet flights – NetJets, Flexjet, and VistaJet - are providing a bullish outlook for the future. According to Aviation Week, the trio are already flying high. Over the three months from March to May, Flexjet saw an increase of 146% in "aggregate hourly utilization" compared to 2019. VistaJet was up 115%, while NetJets, already the biggest by a factor of nearly three, saw a 56% gain. Eric Martel, president and chief executive officer of Bombardier Inc., left, and Patrick Gallagher, ... More president at NetJets Aviation Inc., during a delivery ceremony for NetJets' first Bombardier Global 7500 private jet at the Bombardier Laurent Beaudoin Completion Centre in Montreal, Quebec, Canada, on Thursday, Dec. 2, 2021. Earlier this week Gallagher told CNBC that the market for private jet flyers remains largely untapped and demand continues to be strong. Photographer: Graham Hughes/Bloomberg Yesterday, NetJets Aviation President Patrick Gallagher, speaking to CNBC's Robert Frank, estimated that despite the industry's growth over the past five years, the addressable market for private aviation is largely untapped. "The pandemic unlocked a portion, but if the private aviation market expanded by 40%, you still have only 14% of the addressable market (flying privately)," he told the cable business channel. Gallagher cited a 2020 McKinsey study that showed before the pandemic, only about 10% of households with the financial means to be regular private aviation users were flying privately at the time. The unit of Berkshire Hathaway is expected to take delivery of around 90 new private jets this year. It currently holds options to purchase over 1,700 private jets from Textron Aviation, Embraer and Bombardier. While Gallagher declined to provide specifics, he said, "In terms of what we see in future demand, there have really been no signs of slowdown even in this period of market volatility, uncertainty, and tariff concerns," adding, "We watch all the leading indicators very closely. How much are our existing customers flying? Are they giving us less notice? Are they still booking with normal travel patterns? Are they going to different places? Is travel to Europe down compared to last year? So far, we have not seen any indicators of our business at NetJets slowing down." Flexjet, Inc. Chairman at the opening of the company's new world headquarters outside Cleveland, ... More Ohio, in September 2023. He says nearly all of the HNWs who joined the company's fractional and jet card programs during COVID have stayed flying privately hand have not returned to the airlines. Data from Wing X shows that U.S. private jet flights, which had been tracking at a 3.4% year-over-year growth rate before the tariff announcements, have accelerated with 4.1% year-over-year gains since then. Domestic private jet segments were up 16% year-over-year over the recent Memorial Day weekend. In a separate interview published this week, Thomas Flohr, chairman of Vista, the most global of the big players, told Spears Magazine about the prospect of engaging more wealthy individuals in private skies. "The addressable market is gigantic and growing usually at about double GDP." Earlier this year, Flexjet, Inc. announced a firm order for new private jets from Embraer valued at $7 billion. Co-CEO Mike Silvestro stated that the company anticipates doubling the size of its fleet to over 600 jets by 2031. NetJets, including its aircraft management arm, operates around 1,100 aircraft, which would rank it alongside American Airlines, Delta Air Lines, and United Airlines in terms of fleet size. So, what's driving the growth? Gallagher says it's a combination of factors. For executives constantly on the road, flying privately increases family time. In other cases, customers with mobility issues find navigating big and crowded airports increasingly difficult. For others, it's about visiting the grandkids. At the same time, being able to bring pets along can be a reason to choose private flights. Last year, NetJets flew 25,000 pets, mostly dogs and cats, but also parrots and pot-bellied pigs. Another reason for the optimism is the demographics of the flyers. Silvestro says customers are entering the private aviation market earlier, meaning a longer runway of usage. New customers are now in their late 30s and early 40s compared to a market that was previously driven by users who were 55+. The next generation of customers also want to visit more far-flung destinations, creating a need for bigger jets. He coined the trend, "younger, larger, longer." Vista Chairman Thomas Flohr recently told Spears Magazine, "The addressable market is gigantic and ... More growing usually at about double GDP." His VistaJet unit has grown 115% since 2019, according to recent Aviation Week data. (Photo by ERIC PIERMONT/AFP via Getty Images) For fractional and charter operators such as NetJets, Flexjet, and Vista's VistaJet, anonymity is also an increasing factor, the executives say. "We have clients who own their aircraft and use NetJets when they want to fly incognito," Gallagher told CNBC, noting, 'All anybody is ever going to see is that familiar NetJets stripe on the aircraft. They have no idea, no way to track who's onboard.' Both Gallagher, and Flexjet Chairman Kenn Ricci, speaking on a recent industry podcast, say the programmatic offerings they sell - fractional ownership and jet cards - are proving sticky for newcomers, meaning a broader base of core users, and few have stepped back to the airlines. Ricci told listeners, 'We are not seeing much attrition of that frugal wealthy group that showed up (during COVID).' A recent Forbes survey of billionaires found private jets as the top answer when they were asked to name the one luxury they could not live without. What's going to get 86% of the addressable market, which is still on the sidelines, to fly privately? Gallagher noted that $80 trillion is expected to be inherited over the next two decades. He says the next generation is more open to shared economy solutions, such as jet cards and fractional ownership than their parents. Similarly, the new rich are those who are making their money from tech-driven businesses. Gallagher says NetJets' highest market share is in Silicon Valley. He told CNBC, "The tech money is investing in the shared economy." A survey of Private Jet Card Comparisons subscribers who don't currently fly privately but are considering it found that 63% cited door-to-door time savings compared to airlines, 46% said private aviation would give them access to more convenient airports, and 31% cited the ability to fly nonstop instead of making a connection. Nearly 30% cited traveling with pets. Thirty-eight percent said flying privately would replace long trips by car, something that is driving more private flight providers to offer last-mile solutions. Enticing those who can afford to fly privately and drawing them in has always been challenging. Terrorist attacks and Covid drove new customers who wanted to avoid crowded spaces. Airline meltdowns, where passengers can't be rebooked for several days, cause a brief spike in demand. Product breakthroughs, such as fractional jet ownership, invented by NetJets, and jet cards, which date back to 2019 and created by Sentient Jet, now part of Flexjet, Inc., have made flying easier and more accessible, Cheap access often gets plenty of press but rarely meets expectations, and the business models usually prove unsustainable. Kenny Dichter, who founded both Marquis Jet Partners, which was sold to NetJets in 2010, and Wheels Up, which he exited in 2023, announced his return to the space last month with RealJet, an offshoot of a sports and entertainment platform he launched last year. Dichter is widely credited with helping expand the market via MarquisJet, which enabled its customers to buy jet card flights on NetJets in 25-hour increments instead of making a five-year, 50-hour-per-year ownership commitment. He also promoted a membership program using cost-effective King Air turboprops through Wheels Up. This time he is hoping the ability to offer private flights as a stylish and hassle-free way to travel with friends and business associates to his lineup of VIP events will help bring first-time flyers. Real SLX has already inked partnerships with BetMGM and FanDuel. In launching his charter brokerage, Dichter said, 'We think Real SLX's reach to over 22 million U.S. millionaires, of whom maybe 150,000 are regular private aviation users, creates a white space where we can help bring lots of new consumers into the market.'
CNBC
a day ago
- Business
- CNBC
The flight patterns of private-jet setters are changing, says NetJets CEO
Market volatility and geopolitical tensions haven't slowed demand for private jets, although the travel patterns of the wealthy are changing, according to the president of NetJets. The summer travel season is shaping up to be another strong year for NetJets, with wealthy Americans traveling both within the U.S. and Europe, NetJets President Patrick Gallagher told CNBC. "In terms of what we see in future demand, there's really been no signs of slowdown, even in this period of market volatility and uncertainty and tariff concerns," Gallagher said. "We watch all the leading indicators very closely: How much are our existing customers flying? Are they giving us less notice to book a flight? Or are they still booking with normal travel patterns? Are they going to different places? Is travel to Europe this summer down compared to last year? So far, we have not seen any indicators of our business, at least at NetJets, really slowing down." Gallagher said he is seeing a slowdown in Europeans booking NetJets to come to the U.S. He said the "sales cycles got a little longer," in the spring, as tariff concerns peaked. It's also too early to tell whether the Middle East conflict will impact travel. Yet on the whole, the economic and market turbulences of April and May have quickly subsided and set the stage for a strong summer and fall. While overall private jet demand has cooled slightly since the Covid-era peak, it remains well above 2019 levels. According to Private Jet Card Comparisons , the U.S. saw over 3 million private jet flights in 2024, down from 3.1 in 2023, marking a 1% decline. NetJets, with its unrivaled safety record and successful model of selling fractional shares of planes, remains the overwhelmingly dominant leader. The Columbus, Ohio-based company, owned by Berkshire Hathaway, completed over 500,000 flights last year with 13,600 owners, Gallagher said. The company's 1,100 aircraft would make it one of the nation's largest airlines measured by fleet and it's used by 40% of the Fortune 500 companies. NetJets purchased 90 new planes last year and expects a similar number in 2026, Gallagher said. In an exclusive interview with CNBC, Gallagher mapped out the changing migration patterns of NetJets clients, the surprising menu choices of flyers, and the rare quality the company looks for in pilots. You can watch the full video here , but here are some highlights: Wealth migration "We've seen a migration to the Sun Belt, not just at NetJets, but across the high-net-worth space. With that, we've seen less seasonality in places like Palm Beach, and Naples, Florida, or Scottsdale, [Arizona], which are becoming very busy year-round. You see less of that, that up and down demand. We've seen increases in places like Austin, Texas; Nashville; Columbus, Ohio. All those cities have grown a lot in recent years and climb the ladder in terms of where they stack rank by demand. Meanwhile, we've seen LA lose ground from a traffic perspective. We've seen San Diego lose traffic." The Bay area is probably "our area of greatest market share measured by the percentage of flights of business jets departing. Particularly out of San Jose." Internationally, Gallagher said he sees continued strong demand for Americans headed to Europe or even flying within Europe. "One of the things people love about NetJets is I can own a share of an airplane here, and maybe I fly over commercially, but then I can use NetJets to hop around between Nice and London and wherever else I want to go while I'm there. And so that's a big advantage of our program, is giving people the ability to do that. We think we'll set new records there this summer." However, he said "we've definitely seen a change in Europeans flying in the U.S.," with slower traffic. "There has been a little bit of a reduction." On the growing demand for 'incognito flights' If you own your own plane, your tail number and location can be tracked and posted to social media by a growing number of online flight trackers. Elon Musk's planes, for instance, are frequently tracked on social media. Taylor Swift was called out last year for taking 98 flights on her Dassault Falcon 7x. With NetJets and charters, however, passengers remain anonymous so their movements can't be tracked. "We have clients that own their own airplanes and choose to use NetJets when they want to be able to fly incognito," Gallagher said. "NetJets provides that, that anonymity, because all anybody is ever going to see is that familiar NetJets striping on the aircraft, and they have no idea, no way to track who's on board." Most popular food order on private jet While some owners get delivery from their favorite restaurants or chefs, serving hot meals or fancy feasts on a private jet can be complicated, given the need to refrigerate and reheat food and keep it at safe temperatures. NetJetters often prefer to bring their own snacks from home or keep it basic. "The most common catering order on our plane is crudite," Gallagher said. "Or it's a charcuterie board, it's sliced fruit trays." With catering, NetJets has moved "towards simplicity and consistency so that we can ensure a consistent experience on board the aircraft," he said. "Catering is not as easy as you might think." The wine pairings, however, are expertly curated, since NetJets has a sommelier partnership with Andy Chabot at Blackberry Farm, the famed Tennessee foodie resort. The special quality NetJets looks for in pilots Gallagher said he think the company's pilots make a difference from a customer service standpoint, noting that "on the majority of our fleet, the smaller aircraft, the two pilots are doing everything for the customer on board that flight, and they're the best ambassadors we have to our brand." "It really starts with finding somebody who's got that service heart along with being a fantastic aviator," he added. "Fortunately, we've been very lucky to be able to find those people, and we enjoy great retention rates of our pilots." On the shortage of private jet hangers Just as the proliferation of mega-yachts has led to a shortage of mega-dock space, the rise of private jet fleets has created a hangar shortage. Just finding hangar space for NetJet's airplanes can be a challenge, Gallagher said. "At some of our busiest locations, we're actually having to deadhead aircraft out of those locations at night, just because there's no place to park them," he said. "And so, so we're actively pursuing a number of different real estate projects all over the country — frankly, all over the world — to ensure that we have the ability to move where we need to move, and can control as much ramp and hangar space as we can through our partners." On sustainability Gallagher also talked about carbon concerns. "NetJets is the largest consumer of sustainable aviation fuel within our industry, and frankly, relative to the overall minute portion of overall jet fuel that we consume," he said. "We also offer carbon offset programs to our customers, so they can choose to buy those if they wish." On jet-setting pets High-net-worth flyers aren't the only passengers on NetJet's planes. "We flew 25,000 or so pets last year, and that's, that's a big driver of why people choose to fly NetJets," Gallagher said. While it's mostly dogs and cats, "we've flown parrots. We've flown pot-bellied pigs," he noted.
Wales Online
18-05-2025
- Business
- Wales Online
Scottie Scheffler's colossal net worth at 28, vow to wife and shock arrest
Scottie Scheffler's colossal net worth at 28, vow to wife and shock arrest The American golf star is the current world number one and closing in on a third major title Scottie Scheffler and wife Meredith (Image: 2024 Chris Condon ) The final round of this year's PGA Championship is underway, with world number one Scottie Scheffler looking set to take the crown. Scheffler stormed into the lead at Quail Hollow in North Carolina on Saturday, making an eagle and three birdies in his final five holes to take a three shot advantage into the final round. Having ended the day on 11 under par for the tournament, he is ahead of Sweden's Alex Noren on eight under and fellow Americans J.T. Poston and Davis Riley, who are both on seven under. If he can see out the final round in similar style, the 28-year-old will win his third major win, having already won The Masters on two occasions, adding the green jacket he won last year to the one he donned for the first time in 2022. Despite losing out to Rory McIlroy by finishing fourth at Augusta last month, Scheffler is in pole position for another big win and continue his dominance as the highest ranked golfer in the world. However, despite his success on the course, the New Jersey-born golfer arguably doesn't have quite the same celebrity status as the likes of McIlroy, with little of his personal life making headlines. As he closes in on another title, here's what you need to know about Scheffler's life away from the course, from his incredible net worth and supportive wife to his run-in with the police that stunned the world of golf last year. Article continues below Incredible net worth At just 28 years old, Scheffler has already accumulated a vast fortune through his success on the golf course and a number of lucrative endorsement deals. According to Forbes, his net worth is estimated to be in the region of $61 million (£46 million), although other online sources have estimate he could be worth as much as $90 million (£67.8 million). Last year, he was ranked number four in Forbes' list of the world's highest paid golfers, just behind Jon Raham, Rory McIlroy and Tiger Woods. In 2024, Scheffler took home a whopping $29.2 million (£22 million) in PGA Tour winnings, breaking the record for seasonal earnings on the tour for the third successive year. He also received a cool $25 million (£18.8 million) bonus for winning the FedExCup. In addition to his tournament triumphs, the American is also reported to earn in the region of $20 million (£15 million) from his endorsement deals with NetJets, Nike, Rolex, TaylorMade and Veritex Community Bank. Childhood sweetheart wife Scheffler has been married to his wife Meredith for over four years, having met while at high school in Dallas together. After graduating from high school, the pair attended different colleges two hours apart but kept their relationship going. While Meredith earned her Bachelor's degree in 2018 and co-founded With Purpose College Station - a non-profit organisation raising money for childhood cancer research - she has also been at her husband's side throughout his golf career and has even caddied for him at the annual par-three Masters tournament. The couple tied the knot in Dallas in December 2020 in a winter wonderland-themed wedding, while they have gone on to welcome a son, Bennett, together. Bennett was born last year, with Meredith heavily pregnant and just weeks away from giving birth as Scheffler prepared for The Masters, which he went on to win for the second time. However, he almost never got his hands on the green jacket, having vowed to leave the course at Augusta immediately if Meredith went into labour while he was playing. "People have asked us how our preparation is going for the baby," Scheffler said at the time. "The nursery is not quite ready and we've had some issues at our house the last few weeks. I think that's the exciting part. I think we are definitely underprepared to be parents. "As far as her going into labour, I wouldn't say I'm very concerned. We haven't seen any of the early signs. But pregnancy is weird, it can happen at any time. "Yeah, open lines of communication and she can get a hold of me if she needs to. I'm ready to go at a moment's notice." Thankfully, Scheffler did not need to rush off as he claimed his second major championship title at the Masters before Bennett was born a few weeks later. Shock arrest before PGA Championship Scheffler looks set to add a third major title to his trophy cabinet at this year's PGA Championship, but was at the centre of a bizarre controversy at last year's tournament as he was arrested by police and taken away in handcuffs. The second round of the 2024 competition was delayed after a retired security guard, who had volunteered to work at the Championship at Valhalla Golf Club in Kentucky, was struck and killed by a shuttle bus outside the entrance gates to the course. Around 6am that morning, Scheffler attempted to drive through the gates, only to be arrested by officers from Louisville Police, with images of him being led away in handcuffs soon circulating online. He was then hit with a felony charge of second-degree assault of a police officer as well as three misdemeanours, namely third-degree criminal mischief, reckless driving, and disregarding traffic signals from an officer directing traffic. However, he was released at 8.40am, with all of the charges against him dropped less than two weeks later. Scheffler went on to describe the incident as a "big misunderstanding", adding: 'I wish to put this incident behind me, and I hope (the officer) will do the same. Police officers have a difficult job and I hold them in high regard." Dropping the charges against the golf ace, Jefferson County Attorney Mike O'Connell said: 'Based upon the totality of the evidence, my office cannot move forward in the prosecution of the charges filed against Mr. Scheffler. 'The evidence we reviewed supports the conclusion that Detective Gillis was concerned for public safety at the scene when he initiated contact with Mr. Scheffler. Article continues below "However, Mr. Scheffler's actions and the evidence surrounding their exchange during this misunderstanding do not satisfy the elements of any criminal offenses.'
Globe and Mail
07-05-2025
- Business
- Globe and Mail
Jetcraft builds on US momentum with senior sales appointment
LONDON , /CNW/ -- Jetcraft, the global leader in business aircraft sales, acquisitions, and trades, is today announcing the appointment of Philip Baer as a Sales Director in the United States . Based in Dallas , Baer will lead sales across the South Central territory, including Arkansas , Arizona , Louisiana , New Mexico , Oklahoma , and Texas . His appointment further boosts Jetcraft's US market presence, bringing extensive local expertise to Jetcraft's expanded Americas sales team. Prior to joining Jetcraft, Baer spent two decades with NetJets and NetJets Europe, leading a team responsible for half the company's billion-dollar revenue. Chris Hollingsworth , RVP Sales, Americas, says: " North America is at the forefront of pre-owned aircraft transactions, and we remain committed to expanding our thriving team to continue to meet the needs of this dynamic region, ensuring our customers have access to the best advice and aircraft for their missions. "Philip's proven leadership, sharp commercial instinct and commitment to the very best in market intelligence make him an exceptional addition to Jetcraft." Baer is multilingual and holds an Executive MBA from SMU Cox School of Business, an MSc from the University of Oxford and an FAA Private Pilot License. His appointment follows the promotions of Chris Hollingsworth and Sean O'Leary to Regional Vice Presidents (RVPs) – moves that further cement Jetcraft's strength and agility across North America . For more information, please contact 8020 Communications. Email: jetcraft@ Telephone: +44 (0)1483 447380 About Jetcraft More than brokers, Jetcraft® is a network of global aircraft advisors, offering unmatched international reach and unrivalled local knowledge. The company's market leading intelligence, strategic financing solutions and extensive inventory support even the most intricate of transactions. For over 60 years Jetcraft has led the way, setting standards that continue to shape the industry. Today, a team of 100+ dedicated aviation specialists across 30+ offices deliver worldwide aircraft sales, acquisitions and trading at the speed of life. SOURCE Jetcraft
Cision Canada
07-05-2025
- Business
- Cision Canada
Jetcraft builds on US momentum with senior sales appointment
LONDON, May 7, 2025 /CNW/ -- Jetcraft, the global leader in business aircraft sales, acquisitions, and trades, is today announcing the appointment of Philip Baer as a Sales Director in the United States. Based in Dallas, Baer will lead sales across the South Central territory, including Arkansas, Arizona, Louisiana, New Mexico, Oklahoma, and Texas. His appointment further boosts Jetcraft's US market presence, bringing extensive local expertise to Jetcraft's expanded Americas sales team. Prior to joining Jetcraft, Baer spent two decades with NetJets and NetJets Europe, leading a team responsible for half the company's billion-dollar revenue. Chris Hollingsworth, RVP Sales, Americas, says: "North America is at the forefront of pre-owned aircraft transactions, and we remain committed to expanding our thriving team to continue to meet the needs of this dynamic region, ensuring our customers have access to the best advice and aircraft for their missions. "Philip's proven leadership, sharp commercial instinct and commitment to the very best in market intelligence make him an exceptional addition to Jetcraft." Baer is multilingual and holds an Executive MBA from SMU Cox School of Business, an MSc from the University of Oxford and an FAA Private Pilot License. His appointment follows the promotions of Chris Hollingsworth and Sean O'Leary to Regional Vice Presidents (RVPs) – moves that further cement Jetcraft's strength and agility across North America. About Jetcraft More than brokers, Jetcraft® is a network of global aircraft advisors, offering unmatched international reach and unrivalled local knowledge. The company's market leading intelligence, strategic financing solutions and extensive inventory support even the most intricate of transactions. For over 60 years Jetcraft has led the way, setting standards that continue to shape the industry. Today, a team of 100+ dedicated aviation specialists across 30+ offices deliver worldwide aircraft sales, acquisitions and trading at the speed of life.
