Private Charter Jet Companies See Celebration and Difficulties
Written by Pw on January 6th, 2012Although the private jet charter industry may be celebrating the news that it has had the most substantial increase in profits since the economic recession began, many industry leaders are also preparing for the hard struggles that will be fought in the political arena over the upcoming year. Although the news of an industry-wide rebound is certainly welcomed by the charter agencies and airplane manufacturers that have felt the impact of the hard economic times, never the less it is tinged by the hint of danger looming in the clouds ahead.
The two biggest dangers facing private jet charter companies appear to be the rising prices of jet fuel that are causing so many commercial airlines to increase their fees, and the upcoming battle over corporate and luxury jet tax depreciation. Both of these issues stand to threaten the fragile gains made over the last year by eroding profits and slowing the growth of an industry that many believe reached its pinnacle in the late 1990s. The ever increasing prices of gasoline and jet fuel have already hit the commercial airlines hard, forcing many companies to add steep fees to their tickets and even contributing to the decision of one Australian airline to shake down its passengers for additional money mid-flight. However, those additional commercial fees have also helped boost the increase in sales for private charters that are now offering significantly lower ticket prices to attract business class passengers for empty leg return flights.
At the same time corporate jet depreciation continues to be a contentious issue since it was raised by President Obama over the summer. The issue has been championed by Democrats seeking to highlight government subsidies of the super rich while aid programs for the working poor have been slashed. Republicans, on the other hand, counter that such programs help stimulate economic growth and support companies across multiple industries nationwide and that repealing the tax breaks will cost jobs and slow the economy.