Private Jet Companies Test New Pricing Models To Attract The Rich

private jet

Photo: Wikimedia Commons

Private jet companies have started offering services apart from the traditional model of fractional ownership in order to entice customers, David Kesmodel reports for The Wall Street Journal.In recent years, the fractional ownership model, which requires travellers to own stakes in the planes they use, has suffered as customers have backed out of investments to save money. And now, writes Kesmodel, companies have a variety of alternative options to win back fliers.

Flexjet’s “debit” card, for example, requires a $100,000 deposit (minimum) and allows customers to subtract expenses as they go; Avantair Inc. offers fliers a leasing option; NetJets, owned by Berkshire Hathaway, has started offering discounts to travellers flying between some states on the East Coast and the West Coast.

All innovative. But perhaps not as creative as the business model of Thomas Flohr, a German-born private jet magnate who decorates his jets’ tailfins with graffiti to attract customers.

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