KUALA LUMPUR: Travelling via private jet may not only be a dream to more travellers in the future as rental prices of private jets are starting to moderate as more travellers switch to flying business jets for its benefits.
Experia Events managing director Leck Chet Lam said private jet travel could be attractive to people travelling in groups, especially if they are travelling on business class or first class with a commercial airline.
"If you have a group of six to eight…if they're all travelling on business class or first class commercial, I think it'll come to a point where the price point still makes sense. I wouldn't say it's a one-to-one comparison but I think it'll be attractive enough for the groups to start thinking about it (private jet travel)," he told Business Times in an interview recently.
These groups are of course mostly high net-worth individuals.
The rental price of a private jet depends on various factors of the aircraft, including its size, features and age.
According to the Spring 2022 Aircraft Bluebook, a small Cessna Citation can cost between US$5 million for a 2008 model to US$16.2 million for a 2021 model, while a larger Gulfstream G550 may cost between US$13.75 million and US$41.2 million.
Swiss bank UBS reported in its Billionaire Ambitions Report for 2024 that the total number of billionaires rose to 2682 globally from 2544 a year earlier with their worth also increased to US$14 trillion from US$12 trillion.
UBS added that most of these billionaires were self-made. In its 2023 report, the bank said the new billionaires acquired more wealth through inheritance and entrepreneurship.
Speaking on the demand for private jet or business aviation travel in Southeast Asia, Leck said it is on the rise in the region driven by travellers' need for time flexibility and privacy, as well as expansion of business activities and increasing number of high net-worth individuals in the region.
He added that investments made and are being made into the region from the United States, Europe and China for example is also driving the need for business aviation or private jet travel.
"The businesses in Asia Pacific or even Southeast Asia are investing outwards. That requires travel. Conversely, countries like America, Europe and even China are investing into Southeast Asia and Asia Pacific.
"So, I think that also requires travel both ways, and that really drives up the need and the demand and the growth of the business aviation fleet," Leck said.
He quoted Honeywell' 33rd annual Global Business Aviation Outlook where it is forecasted that up to 8500 new business jets worth US$280 billion will be delivered over the next decade with deliveries in 2025 alone are expected to be 12 per cent higher than in 2024.
"What is so advantageous or attractive about business aviation travel is the flexibility that they offer vis-à-vis a commercial airline whereby you only can arrive at stipulated times or depart at stipulated times, whereas for business jet, all these (arrival and departure) are within your control," Leck said.
He added that connection is also one of the main drivers of business aviation demand where travellers could fly direct to the destination, including to smaller airports, rather than having to transit.
In response to the growth of business aviation in Asia Pacific, including Southeast Asia, Experia Events will be launching the Business Aviation Asia Forum and Expo (BAAFEx) from March 4-6, 2025 in Singapore.
Leck said the event will be a platform where original equipment manufacturers (OEMs), maintenance, repair and overhaul (MRO) services providers, operators and customers could come together to discuss on the various topics in the industry such as sustainability and artificial intelligence, networking and view the different airplanes on display.
He added Experia Event, which also organises the bi-annual Singapore Air Show, is working with major OEMs such as Gulfstream, Bombardier, Dassault as well as various operators to display their aircraft at BAAFEx.
Leck also said Singapore is an ideal location for the event given the country's popularity as a business centre that is well-connected to the region and the world.
"Singapore being a major global aviation hub also plays into its strengths. Singapore's business-friendly environment gives it even more strength to be an ideal location to host it. The community can use Singapore as a springboard to tap into the growing opportunities in the Asia Pacific market," he added.