Business & GA

Business aircraft use in the USA is soaring at the expense of premium-class airline travel, according to analysis by US-based consultancy the Stanford Transportation Group.

According to STG, the decision by travellers to use business aircraft in increasing numbers is driven by the development of new business models including fractional ownership and pre-paid block charter cards, which have helped to lower the entry barrier to business aviation.

"Travellers on business aircraft generate a record 41% of the number of passenger trips as those made by airline first-class, business-class and full-fare coach passengers combined," STG says in its biennial review of premium passenger activity in the US domestic airline and business aviation markets.

"The number of best-paying passengers of US airlines has stagnated at low levels, while the number of travellers using business aircraft is reaching new highs," it continues.

STG analysed the number of one-way US domestic passenger trips by fare category and developed estimates of passenger travel on business aircraft.

"Premium" airline traffic is defined as those passengers travelling on first-class, discounted first-class, business- class, discounted business-class and full-fare coach tickets as reported by the US Department of Transportation's 10% ticket sample. These are passengers who pay a premium for added comfort, privacy or the need to depart without advanced planning.

"As a group, the number of premium trips has fallen from 20% of overall airline travel prior to 9/11, to less than 10% of airline travel," says STG managing director Gerald Bernstein.

"Conversely, growing business aviation acceptance, fleet growth, the expansion of fractional programmes, pre-paid flight card programmes and the development of new business models enabling lower trip costs have driven a steady expansion in the number of travellers using business jets and turboprops," he says.

"There are approximately 16 million one-way trips taken annually on business jets and turboprops. In 2007, the number of trips using these aircraft was 41% of the number of trips made by premium airline passengers. This is clearly a vastly different competitive landscape than existed even eight years ago when business aviation travel accounted for only 16% of the number of premium airline trips."