A new generation of the super rich buying expensive properties in London are providing a spin-off for the corporate and private jet market.
Hangar8, the Aim-listed charter, leasing and aircraft management business, says the influx has increased demand for large private jets in the UK and contributed to fleet expansion. Hire rates range from about £3,000 to £10,000 an hour.
The company has added another six Bombardier Global 5000 long-distance business jets to its fleet this year to meet demand stimulated by the increase in what are described as “ultra-high net worth individuals” living in London and the growth in traffic from major companies in the oil, gas and mining industries.
Dustin Dryden, the chief executive, said: “We’re now seeing the second or third generation of moneyed people from Russia, west Africa, Kazakhstan and elsewhere moving into London and we have to expand to cater for them.
“The children have been to London schools and they’re bringing their own children over now, but they fly all over the world. To illustrate what’s been happening, probably less than 10pc are British.”
Hangar8, formed in 2002 and based in Oxford, now manages 50 aircraft after doubling the size of its long-distance fleet. The acquisition of International Jet Club has provided a boost for the group and Mr Dryden wants to complete another deal for a company with a market capitalisation of around £10m in the current financial year.
Figures for the year to the of end June, to be released on Nov 14 will show Hangar8 had an “exceptionally good year”, said Mr Dryden.
He sees more opportunities for acquisitions “because the desire to travel at the moment is not as great as expected” and feels the market has recovered from the era of the “bucket and spade and skiing brigade” charter holidays.
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