What factors do you attribute to the recent surge in demand for private aviation, and to what extent do you expect it to continue?
The growth of private aviation predates the pandemic to some extent. There was an increase in fundraising and asset purchases in the private aviation space 5-7 years ago. When the pandemic hit, it was initially thought consumer travel would reduce, however, the opposite occurred, especially for private aviation. This perception of reduced health risks due to limited touch points and exposure compared to commercial flights led many to explore private aviation for the first time. There was unprecedented demand from mid-2021 to early 2023, with more consumers than availability.
New entrants also drove this surge to the market. Once people experience the efficiencies of private aviation, they see its overall benefits beyond just the initial health concerns. It allows for more productive and restful travel, enabling multiple business meetings in different locations within a single day. The growth seen in 2021 and 2022 likely won't be repeated year after year. However, there is now greater awareness. I anticipate growth will continue, but not at the surge level experienced during the pandemic years.
25 years ago, Sentient Jet invented the jet card. In 2024, how do you distinguish yourselves from the current competition in the private leasing market?
Sentient Jet has a more than 25-year history of collecting data and understanding the market; these insights drive our services, and we are clear about our commitments to safety. Our four-stage certification process ensures top safety and quality standards, with every flight undergoing rigorous checks overseen by our chief safety officer; we never fly on yellow or red flags. We offer complete end-to-end travel management and 24/7 client services, both in the US and overseas, ensuring you can always reach us without automated responses.
Since Sentient Jet founded the Jet Card in 1999, we’ve always considered ourselves to be innovators in the private aviation industry. From introducing the first-of-its-kind jet card, to driving change in key industry priorities (like sustainability) and even thinking of ways to evolve our booking process digitally, it’s our long history and forward-looking approach that sets us apart from competitors.
Flexjet has undergone a considerable amount of M&A in recent years, and, at Sentient Jet, you stated: ‘We thoughtfully chose a path that reduced growth but improved profitability’. Can you explain the thinking behind this approach?
When we talk about profitability, we measure this in both monetary and client service terms. We can't drive profitability without happy clients. During high demand, we had to ensure our client base was well-serviced and their needs met. Consumer promises had to scale with growth, requiring a healthy and stable business. To achieve this, we made strategic decisions about the market and the clients we wanted to serve. We did a growth trade-off to maintain a healthy financial statement, allowing us to invest in the business and grow through innovation and enhanced services.
Our approach to M&A has been strategic. At Flexjet we entered vertical lift by acquiring Halo in London and AAG in New York, integrating their teams and helicopters into the Flexjet program, as well as offering access to our other brands, such as Sentient Jet. This has differentiated our product by offering seamless travel from long flights to short-distance helicopter transfers. Additionally, we acquired a large maintenance company, Constant Aviation, to control the finishing and refurbishment of jets. This ensures we maintain high standards and customization for our fleet. Our M&A strategy focuses on extending and enhancing our product set rather than just increasing fleet size to meet demand.
Transparency around sustainability is increasingly important for customers. How does the company’s carbon offset program take into account factors beyond traditional measurements?
Our carbon offset program goes beyond traditional measures. We work with a trusted partner, 4Air, to neutralize all emissions, not just CO2. At Sentient Jet we aim for a 300% offset to cover aerosols, water vapours, and other environmental impacts from flights. This commitment reflects our tagline, "a more thoughtful way to fly."
We integrate the 300% offset into our program at no additional cost to our card owners, investing millions of dollars to ensure it. This initiative aligns with our goal of being thoughtful corporate citizens and prepares us for the future of sustainable aviation.
Sustainability resonates with our clients, especially in Europe. While the US has become more focused on sustainability, we aim to make it part of our brand's fabric rather than a response to external pressure. By integrating sustainability into our core values, we hope to lead the industry and encourage others to follow suit. Our efforts to track and display carbon footprints for our clients are part of this initiative; we believe that corporations will eventually need to show their travel footprint so we're preparing for that future by providing transparent data on our offsets.
What is the greatest challenge you face when it comes to meeting customer and client needs?
The biggest challenge is the customer journey, from the initial purchase to the flight experience. Aviation travel involves many potential friction points due to regulations, weather, and other factors. We focus on smoothing out these issues and technology plays a crucial role. We aim to have comprehensive information about our clients to anticipate their needs and ensure high service levels. Our Sentient Certification program rigorously inspects and monitors our pool of certified aircraft to guarantee safety and quality.
Priorities include maintaining and enhancing our client services and technology. We aim to optimize the customer experience without letting technology overshadow it. Incremental innovation is crucial for continuous improvement. Additionally, our people are vital to our success. We have an incredible team with a strong retention rate, driven by a passion for the industry and the brand. Maintaining our unique culture at Flexjet and its related brandsis essential as we grow and innovate.
