The surge in private aviation during COVID wasn't a temporary trend. New customers who tried it for safety or convenience have largely stuck with it, creating a lasting market expansion. This is evidenced by multi-year backlogs for new aircraft deliveries, even five years later.
The fractional ownership model is growing fastest because it offers the benefits of private flight without the operational headaches of whole ownership. Customers pay fixed fees and avoid surprise costs, an appealing proposition even for those who could afford their own plane but prefer simplicity.
The private aviation market is so supply-constrained that certain desirable used aircraft, like a 2012 Phenom, are selling for the same price they were purchased for new over a decade ago. This extreme value retention reflects both the durability of the aircraft and the unprecedented post-COVID demand.
The old heuristic of matching customers to charter or fractional ownership based on annual flight hours is no longer relevant. Today, decisions are driven more by preference for ease and predictability over pure economics, with some high-frequency fliers choosing the simpler fractional model against economic advice.
During its acquisition of the Wheels Up management business, Airshare's CEO made the strategic decision to retain all employees, even without knowing their specific roles. This was done to prevent any drop in customer service during the transition, prioritizing customer experience over immediate post-merger efficiency gains.
While attractive in theory, selling discounted empty leg flights often leads to customer dissatisfaction. The flights are highly fluid and subject to change based on the primary paying customer's schedule. This unreliability results in frequent cancellations, ultimately angering more potential customers than it pleases.
When Airshare first introduced Wi-Fi, some customers were furious. They viewed private flight as their last refuge from constant connectivity and a rare opportunity to be unreachable. This highlights how perceived upgrades can sometimes conflict with a core, unstated value proposition—in this case, forced downtime.
Consolidating private aviation companies is incredibly difficult due to FAA regulations. Moving an aircraft from one operator's certificate to another requires a costly, multi-year process of re-training pilots and re-certifying planes, even if nothing operationally changes for the same owner and aircraft.
Counterintuitively, Airshare discovered that expanding from a regional to a national model would increase operational efficiency. By analyzing flight data, they realized their planes were flying long, empty "deadhead" legs to reposition for regional customers. A national footprint allowed them to better utilize their fleet.
Moving beyond reactive Net Promoter Scores, Airshare implemented a proactive "Customer Health Assessment." This system scores each customer on seven criteria, including flight frequency and relationship strength. This provides an early warning system to identify at-risk accounts before they become dissatisfied.