It’s no surprise either that new research from Bain & Co shows that millennials and Generation Z are increasingly driving the ultra-luxury sector, accounting for all of the luxury market’s growth last year.  

Connecting with our audience is how we’re successful. We know our customers. And our regional presence gives us a cultural understanding that many other aircraft specialists can’t match. This insight also applies to the different generations that now make up our customer base. 

So how do you engage with the next generation when it comes to selling luxury assets? 

Tapping into technology  

At Jetcraft, we have a long history with data and technology. We’re now harnessing the power of the very latest technologies to make the buying process more immersive to fully meet the expectations of this new audience – our Beyond the Globe experience. 

This includes our Decentraland-based lounge, which we opened in 2022 and our newly launched virtual hangar which gives visitors 24/7 year-round access to a range of aircraft in a 360-degree immersive experience. Combined, our customers can virtually explore our expertise, inventory and examples of aircraft at their own leisure to first to get a feel for what might suit their mission, before connecting in-person with one of our experts around the globe. 

We also launched our internal chatbot, JetGPT, which harnesses generative AI to provide faster and smarter insights for our clients. By hooking into our existing software, JetGPT gives our sales team instant access to microdata on our aircraft inventory, market summaries and emerging market trends. This furthers our ability to find the exact aircraft for our clients’ needs in minutes. 

Seeking sustainability

Luxury shoppers – and younger consumers in particular – are more likely to take an active interest in the sustainability of a product or service and be willing to spend more on sustainable products.  

Many of our young entrepreneur clients are founders of businesses that have invested in technology to help the fight against climate change and are looking for transport solutions that offer convenience while supporting their goals.   

We take our responsibility seriously and have partnered with environmental impact measurement company Azzera to achieve carbon neutrality and invest in projects that deliver environmental and social change across the globe. We also encourage all our customers to use sustainable aviation fuel and are supportive of the industry’s efforts to increase its availability.   

Ultimately, when it comes to the luxury sector, these measures aren’t a luxury. Instead, they’re a crucial component of meeting the new expectations of a discerning younger consumer prioritizing interactivity and sustainability.  

The current landscape provides ample opportunity for this combination of success and failure. On the one hand, commercial aviation has been forced to contend with significant headwinds over the last few years and the post-Covid recovery remains underway. On the other, in adversity there is opportunity, which is why we’ve seen many new carriers enter the market, including Norse Atlantic Airlines, Canada Jetlines, and Bonza in the past year alone, as well as existing smaller operators such as Provincial Airlines in Canada rapidly expanding to replace legacy carriers who have exited markets.

While the prospects for start-up airlines can be exciting, our experience indicates there are several key considerations that will prove key to success.

Consider the mission

Deciding whether you have the right aircraft for your mission is fundamental to succeeding. An airline’s key routes will determine the aircraft type you should invest in. While regional jet flights saw a big decline during 2022, at Jetcraft Commercial, we were able to support airlines that had identified opportunities and were looking for available aircraft to launch their services.

For example, we worked closely with start-up airline SilkAvia – which was recently launched by Uzbekistan Airports in response to growing demand for domestic travel and to enhance Uzbekistan’s booming tourism sector – to source and place three ATR72-600 turboprops to meet their needs. By acquiring these aircraft from Bangkok Airways, we supported one airline in renewing its fleet and another with its launch.

The power of expertise

While aiding clients through turbulent times is one strength of Jetcraft Commercial’s, another is finding aircraft when demand for particular types is high. Start-up airlines can boost their chances of success by partnering with companies that have insight into the entire market globally, and can identify the aircraft most suitable for their mission.

With the market picking up, now is the perfect time to benefit from this expert advice. The 2023 Dubai Airshow has demonstrated a resurgence, with the Middle East and Southeast Asia showing the highest growth, according to a Boeing forecast. This was underlined by Irish lessor Abelo increasing its ATR order to support demand from Southeast Asia, while airlines are also driving activity in the narrowbody market, with a significant investment by AirBaltic in the A220 regional jet.

As requirements for new aircraft increase, opportunities in the pre-owned market abound. This is where working with a specialist company to source your next turboprop, regional or narrowbody jet is key. Our team can often find aircraft others can’t, drawing on expertise that ensures customers develop a fleet that meets their current and future requirements.

No deal is impossible

Some transactions might appear too difficult for a start-up airline to navigate. At Jetcraft Commercial, we’re uniquely qualified to close even the most complex transactions to support fleet planning – including buying multiple aircraft ahead of selling these to other parties – ensuring buyers gain access to the broadest range of makes and models to best meet their needs.

Our credit lines and financial strength mean we can also support our customers in their aircraft purchases, ensuring cash flow challenges don’t stifle their ambitions.

Ultimately, while launching a successful start-up airline is certainly challenging, it’s possible to soar to new heights with the right expertise and support.

The hangar launch brings together Jetcraft’s full Beyond the Globe experience, following on from the opening of its Decentraland-based lounge, where it became the first business aviation specialist to establish a permanent presence in the Metaverse.

Peter Antonenko, President, Jetcraft noted: “In a world dominated by mobile technology and constant activity, having a virtual space at your fingertips is convenient for all our customers, both new and returning. Over the past five years, we’ve witnessed a remarkable increase in Jetcraft buyers aged under 45, who are embracing business aviation while already being well-versed in up-and-coming tech. We recognized early on the potential of the Metaverse and that offering virtual reality experiences meets the evolving needs of our clients.

“For first-time buyers seeking to explore the world of business jets and find the ideal model for their missions, our virtual hangar offers a swift and accessible means to tour aircraft from anywhere in the world. Jetcraft is well established globally, so our next natural step is to venture Beyond the Globe, giving our customers borderless access to our expertise and aircraft, wherever and whenever suits them best.”

Accessed via Jetcraft’s website, the Oculus app or Jetcraft’s Decentraland lounge, customers can enter the virtual hangar for an immersive aircraft viewing experience at their own leisure. Jetcraft has also opened a virtual and augmented reality (VR/AR) booth at the Nice Côte d’Azur General Aviation Terminal from December 2023, bringing the virtual hangar to life further and giving passers-by a taste of the next generation technology that the company is embracing.

In addition to expanding in the Metaverse, Jetcraft continues to grow its technical capabilities, having launched JetGPT internally earlier this year which harnesses generative AI to provide faster and smarter insights for Jetcraft’s clients at the Speed of Life.

Visit the virtual hangar and the Decentraland lounge here.

Can you introduce yourself, and your relationship with Jetcraft?

I’m Mick Doohan, President of Jetcraft Australia and New Zealand. Many years ago, I was a motorcycle racer, winning five MotoGP world championships in quick succession between 1994 and 1998. During this time, I also bought my first private jet to fly to different competitions – marking the start of my exposure to business aviation and my journey into charter and FBO ownership which eventually led to my partnership with Jetcraft.

What inspired you to start racing?

I have two older brothers who used to ride dirt bikes, so I followed their lead when I was around six years old. I began racing motocross and dirt bikes at the age of eight and transitioned into road racing when I was 19. My racing career escalated very quickly, starting with production bikes in Australia, such as the 250cc, and then just two years later, competing on the world stage with a Grand Prix 500cc motorcycle.

What was the most rewarding aspect of racing?

The best thing that comes out of sport is the discipline it teaches you and the commitment to achieve at a world class level. Winning the world championship was always what I aimed for. When I moved into business later in life I took this mindset with me, as well as the organisational skills I needed to coordinate with a team.

What has been the highlight of your career?

The major highlight of my racing career was winning my first Grand Prix and achieving a world title. After a few false starts and nearly losing my right leg following a crash in 1992, it was very special to become world champion. To come back after injury with five consecutive wins was more than I ever hoped for. Another highlight was winning my last world title in Australia in front of my family, friends, and the Australian public.

How is racing still a part of your life?

Racing is still a big part of my life. My son, Jack Doohan, is a reserve driver in Formula 1 for Alpine F1 and a Formula 2 racer, so I’m often at the racetrack all over the world supporting him. I’m also a longstanding board member of the Australian Grand Prix Corporation – we’re behind the promotion of the Australian F1 and Australian MotoGP, it keeps me active and involved with the sport that I love.

How does racing tie in Jet sales and ownership?

They are both fast and exciting. In the Formula 1 and MotoGP paddocks, many drivers, riders and principals either charter or own aircraft, given the frequent need to travel across the globe for races. Additionally, spectators often arrive at the corporate hospitality suites and grandstands via business aircraft, so it’s great for us at Jetcraft to be involved.

There are a lot of synergies between sport and aviation. In a high-pressure situation orin the high speeds of a race you’ve got to calculate a decision that’s going to work on the spot. It needs to be instantaneous. Those quick decisions keep you moving forward towards the right outcome. That’s what sport brings to me and I believe to other sports professionals that have moved into business or aviation.

Raphael Haddad, President, Jetcraft Commercial, says: “Jetcraft Commercial has a global presence, financial strength and strategic prowess, which allows us to identify and rapidly react to shifts in market demand. In our recent Dash 400 deals, we’ve purchased sought-after fleets and quickly secured buyers.

“The high speed and performance, as well as the higher density of the Dash 400 perfectly meets the needs of developing domestic and regional travel markets, particularly for airlines operating in landlocked countries, and we’re seeing interest from Central Asia, Europe and Africa. Internationally, there is a growing appetite for regional aircraft with this kind of flexibility and efficiency.”

With Jetcraft Commercial most recently committing to purchase 12 Dash 400s from Horizon Air, five of which have already been placed with undisclosed buyers, while the remaining seven are set to be delivered to strategically selected customers through 2024.

Jetcraft Commercial has a strong track record of swiftly and efficiently structuring and closing complex transactions that deliver success for buyers and sellers and fuel the growth of new aviation opportunities. Earlier this year, the company announced the delivery of three ATR72-600 aircraft sold to Uzbekistan Airports, acquired from Bangkok Airways.

However, AI isn’t a new notion and within aviation, airlines, MROs and other operators have been using the technology for fleet optimization, flight planning and ground operations for several years now. For example, aircraft manufacturers and service technicians use AI software and robots and chatbots to streamline assembly and maintenance, repair, and overhaul (MRO) processes.

As it grows smarter and paves the way for platforms which enhance efficiency and profitability, new opportunities for its application are presenting themselves. Within our team of data scientists, we’re constantly scanning not only our industry but also others to understand the potential and how it can be integrated into the business aviation sector. Here’s what’s caught our attention:

Speeding up processes

 For charter operators, chatbots are becoming an initial touchpoint for new business aircraft booking requests, learning the customer’s requirements to provide suitable flight options, streamlining the booking process and making it quicker for inquirers to understand charter costs. AI is also being used to analyze client preferences, past flight data, and real-time information to offer personalized charter recommendations. It can also support aircraft management, optimizing flight scheduling to minimize aircraft downtime.

AI can be pivotal to deal sourcing for aircraft brokers, continually monitoring for available aircraft, off-market aircraft, pricing trends, and market demand. It can share real-time data and insights, helping companies identify deal opportunities quickly. As with the charter industry, we could also begin to see chatbots engaging with prospective customers, sharing aircraft brochures and specifications via social media tools.

Blazing the technology trail

Jetcraft has a long history with data and technology. We first launched our Market Forecast in 2015 as a way to connect the data we had at our fingertips. Then in 2018, we formed a dedicated analytics team and refined our Market Forecast to assess the pre-owned market in ways that others couldn’t and provide us with an unparalleled understanding of the markets we operate in. Since then, we’ve developed Jetrange and the Jetcraft App, giving our clients access to the insights they need to make decisions about their business aviation investments. And in mid-2022, we became the first business aviation specialist to be permanently established in the Metaverse, purchasing real estate in Decentraland.

Most recently in 2023, we launched our internal chatbot, JetGPT, which harnesses generative AI to provide faster and smarter insights for our clients. By hooking into our existing software, JetGPT gives our sales team instant access to microdata on our aircraft inventory, market summaries and emerging market trends. This furthers our ability to find the exact aircraft for our clients’ needs, faster than anyone else in the industry.

Our mission is to constantly adapt to ensure the services our clients need are available to them. Entering the virtual world reflects our awareness of our evolving client base, having seen a 20% increase in our buyers under 45 years old in the last five years, driven by a growing number of younger entrepreneurs from the technology and finance sectors entering business aviation.

The right tools

Technology is developing fast. At Jetcraft, we cut through the weeds of the newest trends to make sure we have the best digital tools available so we can deliver on our mission of transacting at the Speed of Life.

For more information or to speak to your local Jetcraft sales representative.

Can you introduce yourself, and your relationship with Jetcraft?

My name is Jack Doohan and I’m a Formula 2 driver for Virtuosi Racing, which is part of the Alpine Academy.  I’m also a reserve driver for the BWT Alpine Formula 1 team. I’m fortunate to have a personal partnership with Jetcraft. I appreciate their support, and I’m excited about our future together.

How long have you been racing for?

I come from a motorsport family and my dad, Mick Doohan (five-time MotoGP World Champion), certainly influenced my path, but racing has always been something I wanted to do. We have a kart track at our home in Australia, so I’ve been driving since I was three or four years old and racing since I was eight. For as long as I can remember, my world has revolved around both two and four wheels, so competing felt like a natural choice for me. Luckily, I took the safer route.

Did you always see yourself entering the racing world?

My life has always been about racing, I never really considered any other path, and I can’t remember a time when I wasn’t thinking about becoming a racing driver. That remains the case, even today. While I do have plans outside of racing in my distant future, my certainty in wanting to take this route and be the best that I can be has never wavered.

What challenges have you overcome which will help in future races?

Throughout my racing journey I’ve faced some mental challenges. I’ve had to learn to overcome these to put myself in the very best shape, mentally and physically, and to make sure I’m not underperforming in any areas. Motorsport is all about mechanics. Things can go wrong and are often beyond your control. I try my hardest to stay firm, embrace the challenges and become a better driver and person.

What personality traits make for a successful competitive driver?

To be a successful driver, you have to focus on refining all aspects of yourself and your team. Even the seemingly minor details are important; it’s all about fine tuning those little 1% items that might not seem like they matter on their own to make sure you’re on top of it all. A lot of people out there are highly gifted and talented, but it ultimately comes down to these small, seemingly insignificant elements which do make the difference.

What are your future racing goals?

My aspiration is to be a full-time Formula 1 driver and follow my dream of becoming a world champion. I’m also dedicated to growing as a person so I can be the very best driver on and off the track.

Why did you decide to start racing?

I started racing shortly after Jetcraft sponsored a GT racing team. The owner of the team said, “As you’re here, you might as well drive.” I had done karting and circuits for fun in the past, but never driven competitively or seriously. I began training in 2021, and in ’22, I had my first race season in GT4. I’m now competing in GT3, sharing a car with Pascal Bachmann, our SVP Sales, EMEA.

What do you enjoy the most about racing?

When you’re in the car, you can’t afford to think about anything else. Throughout the day, my brain is occupied with a million thoughts, but I simply can’t do that while driving or I might crash. So, besides the obvious sporting elements, such as the adrenaline rush and the thrill of the competitiveness, what truly matters for me is being in the moment and completely focused on one task.

What personality traits make for a successful racing driver?

I don’t think it’s exclusive to racing but more about athletes at a competitive level – the leaders have talent, like so many others, but it’s their application to the sport that sets them apart. Their dedication, determination, and attention to detail make all the difference to the level of their success.

What are your future racing goals?

I’d like to participate in GT3 for at least a couple of years to gain some real experience. Once I feel like I’ve reached the right level there, I’ll consider what I can do to continue to challenge myself next. Every driver wants to do Le Mans, right?

How does racing tie in with jet sales and ownership?

While there are some professionals in the GT leagues, there are also many teams with drivers like me who race as a hobby. Interestingly, I’ve found many of these teams are led by aircraft owners or brilliant individuals from across the aviation industry which provides valuable networking opportunities. GT racing introduces you to like-minded enthusiasts who share the same passions.

You also can’t forget that competitive sports, such as racing, are akin to owning a business – where you are constantly trying to get ahead of your competitors.

While standardization of border crossing regulations in Asia have lagged behind the rest of the world, becoming a point of friction when it comes to travel resuming, demand has picked up again. The China Air Transport Association (CATA) is claiming aviation has returned to near pre-pandemic level, while software business Sabre has identified significant spikes in demand for flights into China as Covid restrictions were relaxed and tourist visas were issued earlier this year. Meanwhile, domestic airlines in India carried a record 13 million passengers in March, according to the Directorate General of Civil Aviation Data and the Civil Aviation Authority of Vietnam has predicted the country’s air traffic will recover to 2019 levels this year.

Ultimately, while the bounce back is incomplete and imbalanced, we can see some green shoots of recovery, meaning aviation businesses can respond smartly to seize new opportunities.

The power of the Jetcraft network

The pandemic caused a significant shortage of high-quality aircraft in APAC because many smaller carriers pushed back maintenance events during this period. As a result, they need to access funds – depleted from a lack of activity – to perform the necessary maintenance on aircraft that have spent some time out of service.

In response, Jetcraft Commercial has harnessed the power of its network to identify opportunities for airlines to benefit from cost-effective maintenance, as well as regional and single-aisle aircraft fleeting solutions.

We’ve also been tasked with addressing the shortage of quality aircraft in the region by designing complex transactions between multiple parties. For example, this year we acquired three ATR72-600 aircraft from Bangkok Airways and delivered them to Uzbekistan Airports to be placed with the country’s new community airline, Silk Avia which is bringing more remote communities together. We completed this acquisition despite the ongoing pandemic-related recession that was affecting air travel in Thailand.

This is the type of transaction that will contribute to greater connectivity and new opportunities across the region. It was made possible by our extensive expertise in swiftly and efficiently structuring and closing complex transactions involving multiple aircraft and parties.

Responding to a shifting environment

Even though the recovery is well underway, the pandemic continues to demonstrate how the most challenging circumstances can introduce new opportunities if businesses respond creatively.

While Covid-19 required airlines to adjust their strategies and long-term plans, aviation businesses could succeed through access to the right networks, expertise, and insight.

Find out more about how Jetcraft Commercial can help your business seize opportunities in a shifting landscape.