Like the broad-based luxury sector, the state of the private jet market in China is the subject of mixed reports. For high-end watches, jewelry and fashion, the mantra has been a decline in domestic purchases, but relatively positive results overseas.
Specific to business aviation, a recent article in Aviation Week noted, “Chinese business jet order numbers appear to be tracing the beginnings of a curve that looks like a bathtub: a sudden drop, followed by a very shallow rise and then, the industry must hope, a much stronger upward movement as normality returns.” At the same time trade publication Aviation International News was reporting a number of projects to build infrastructure to support private jets are moving ahead.
Today NetJets Business Aviation Limited announced it is cutting the price of entry with a Private Jet Travel Card that requires a starting balance of $150,000, or “less than half of the previous card option,” says Chris Herbert, Global Manager, Public Relations.
The product gives a China-based traveler the ability to fly within the country and also access the NetJets fractional fleet in the U.S. and Europe.
According to a press release, “Travelers now have access to the Hawker 800XP within the Executive Jet Management China Charter services. Travelers also have access to other Signature Series aircraft in the U.S. and Europe, subject to availability. Minimum starting balance requirements have also been reduced, allowing the buyer to determine the exact amount of flight time needed. Standard charter rates in China, hourly rates in the U.S. and EU, and ancillary fees are deducted from the balance.”
“As the demand for charter services among China-based travelers continues to grow, we are pleased to introduce these enhancements to the Private Jet Travel Card,” said Eric Wong, Vice Chairman, NetJets Business Aviation Limited “We believe the lower upfront cost and greater selection of aircraft will accommodate the needs of these customers as they come to value the benefits of private aviation – convenience, safety, security and privacy.” The Card was first launched in 2012.
Asked about current challenges in the market, Herbert responded via e-mail, “Our commitment to the market is much broader than what’s happening there today. We see the long-term benefits and a growing demand for our products and service. This card is a great example of how we’re working with local customers to make travel within China easier and more cost efficient for both business and leisure travelers.”
What to make of getting access to NetJets for less than half of what it used to cost? Perhaps we can refer to Berkshire Hathaway Chairman Warren Buffett, who once said, “The best thing that happens to us is when a great company gets into temporary trouble…We want to buy them when they’re on the operating table.”
