It seems that the global super-rich like their private jets on the bland
side.
No matter if you’re the CEO of a Fortune 500 company or electronics tycoon
from Asia, it’s likely a dark wood veneer and light-colored leather upholstery
will envelop you in the lap of luxury at 38,000 feet.
Even the bright red and yellow livery of kung-fu superstar Jackie Chan’s new
jet (that came with his role as “ambassador” for Brazilian plane-maker Embraer),
gives way to a spotless interior of mid-tones and cream leather seats.
If it doesn’t seem to fit the persona of the martial arts actor, the
companies that are fighting over the executive jet market are well aware that
giving clients whatever they want, even if that is uniform luxury, is essential
when it comes to securing a multi-million dollar sale of an aircraft.
“It’s the cabin that sells the aircraft,” says David Velupillai, of Airbus
Corporate Jets, from the back of a voluminous sofa on board a champagne-colored
ACJ318. “Usually clients just need it to be practical.”
If you can afford a $65 million jet like the ACJ318 (based on the commercial
A318), fluctuating fuel costs aren’t as much of a concern as a spacious bedroom
and enough space for a banquet in the sky.
A round table that can convert into a square for mahjong games is an
off-the-shelf option for Velupillai’s prospective Chinese clients, who are also
being targeted with laser-like precision by the other big corporate jet
companies like Boeing Business Jets, Gulfstream, Embraer, Dassault and
Bombardier.
Just 15 years ago there was only one corporate jet in China, and private jet
ownership was illegal in the country until 2003. Now there are over 200 private
and executive jets in China and around 700 in Asia., according to Embraer.
However that’s a small fraction of the total number of private planes
criss-crossing the globe — Asia still only has about a 5% global share,
compared to North America’s 40%, the company says.
But while bigger can mean better in the high status world of private jets,
the market for smaller four or six-seater jets, accessible to millionaires, not
billionaires, is increasing.
Analysts predict that Asia is worth around $40 billion to the private jet
market in the next 10 years, although there could be some bumps along the way
for companies hoping to cash in on the privacy mores of high-net-worth
flyers.
“It’s not a recession-proof industry,” says Jose Eduardo Costas, vice
president of Embraer Executive jets for Asia Pacific.
Like many other businesses, Europe’s precarious economic position is the main
worry for private jet manufacturers.
“The drivers of this market remain the same; it’s how the economies are
performing, how the companies are doing, how the stock markets are,” says
Costas.
“We still have a lot of the bottlenecks (in Asia) that the West has overcome
over the last 30 to 40 years — access to airspace and dedicated infrastructure
like private jet terminals and common regulations. They will be smoothed out in
time.”
Courting clients and getting them to part with tens or hundreds of millions
of dollars is one thing, but dealing with their demands once the plane is in the
air is another.
“Every owner is different,” says Jenny Lau, CEO of SinoJet that manages six
private planes in China, including the Jackie Chan jet. The company is one of
many springing up to serve China’s private jet owners with air and ground
crew.
“Some owners don’t want to be bothered at all during a flight, but one might
want his ashtray to be cleaned after two cigarettes. One gentleman, for example,
if he was to land in Kazakhstan to refuel would expect a blanket to be handed to
him, immigration forms to be filled out, that kind of thing.”
Lau, a former finance executive from Hong Kong, expects Sinojet to double its
client list in the coming year. Her company and others like it are learning to
deal with the spontaneous whims of the owners.
That could be having a pilot and stewardess ready to go in a couple of hours
for a flight to a different city just for dinner or jetting off for a Big Game
hunt in Africa.
“Some are very particular, often about little things like table-wear and
having their own and favorite chopsticks.”
Demanding, yes, “but they’re all very nice!” she adds.
