What they really think about fractionals/jet cards/charter.

[gret]

Business Jet Traveler’s First Annual Readers’ Choice Survey

Nearly a thousand subscribers responded to BJT's first annual survey on business jet travel. Read on to find out why our readers fly privately; what they like best and least about fractional, jet card and charter providers and their own jets; and what aircraft they'd pick if they could have any available model.

http://www.bjtonline.com/fileadmin/templates/media/img/BJT_Readers_Choice_Survey_2011a.pdf
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[BentOver]

Looks like a majority of responders were from the fractionals....

Actually not too bad of numbers in support of fractionals... Just a rough estimate, but it appears that around 75% of Fractional responders checked either Excellent, Good, or Adequate..... The lowest marks appeared to come from "Fractional residual value" where maybe 20% didn't think residual value was that good. Makes sense given the drop in value of their a/c...

And those that would renew looks like around 60-70%... From what I remember that is around historic values.....

Netjets may have missed the ball seeing that Gulfstream still has the most sought after product... Geez, Sokol couldn't have been lying when he said that customers preferred the Globals....

 

[gret]

Maybe I'm reading it wrong, but isn't the renewal rate for frax/card around 25% and charter 75%

 

[BentOver]

It looks like that Definitely" is maybe 30%, and Probably is around 37%

Probably Not around 20% and Definitely Not around 13%.......

I'm not sure of historic numbers but I think that is atleast around what it has always been? 45% of Fractional responders were from NJA.

IMO, alot of owners have gotten burned on the residual values of their shares due to the downward economic pressures of aircraft values. They didn't get the value they expected when they signed up......Maybe if their share prices become worth more, or if the downturn wouldn't have been so severe, %'s may have been different.

 

[gret]

Got it. I was just looking at the "Definitely" group.

Would have been interesting to see these figures since 2005.

 

[gunfyter]

Yeah well ... I think there was a point that if Gulfstream delivered an airplane to you ... you could immediately sell it for $10Million more than you paid.

Thats residual value

 

[BentOver]

Yeah well ... I think there was a point that if Gulfstream delivered an airplane to you ... you could immediately sell it for $10Million more than you paid.

Thats residual value

Hence the reason they would be much happier with thier fractional ownership... If you bought in thinking that in x years you'd sell back for $X.. and then suddenly your share isn't worth squat, it tends to bring down your perception of the worth of fractional ownership.

 

[Some guy]

Residual values may have dropped, but had these fractional owners owned their own aircraft, they could have suffered the entire loss on their own. If they own a 1/4 share, then they have less vested and less to lose.

And if you say a private (full aircraft) owner only flies his jet 200 hours a year, then to own an aircraft with such low utilization is a waste itself.

SG