Expedia CEO Barry Diller came under fire recently because he reportedly used a company jet to rack up $12 million in personal trips since 2005, while Facebook founder Mark Zuckerberg billed the social media giant some $1.2 million for personal flights in 2013 and 2014.
And who can forget the nation furor that erupted when Detroit auto executives used private jets to travel to Washington D.C. to ask for government handouts?
Given the history, then, it may come as no surprise that executives are being a bit more secretive about their use of private jets these days
As a result, many executives and super-rich travelers are hiding ownership of private jets, according to attributed to René Banglesdorf, CEO of Charlie Bravo Aviation.
“They might purchase an aircraft under the name of a shell or operating company that leases it back so that it doesn’t show up on the books as an asset of the company or under the FAA registry with a high-profile individual’s name attached,” said René Banglesdorf, CEO of Charlie Bravo Aviation, which sells private jets out of Austin, Texas.
“It affords more privacy and it simplifies tax implications for aircraft that are used for both professional and personal purposes,” she added.
While private jets are convenient and in many cases practical for wealthy frequent travelers, they sometimes carry a stigma that travelers want to avoid.
That’s also cut down on executives using company jets for personal reasons.
“Business executives are not using the corporate jet for personal travel like they used to and if it’s discovered that they are, there’s more effort to reimburse because company shareholders are insisting on it,” said Neil Book, CEO of JSSI, which maintains Delta’s private jet division.
Some 65 percent of ultra-high-net-worth individuals fly private jets for business purposes to get to meetings quickly compared to 35 percent that use private jets to get to sporting events such as the Super Bowl, according to Life In Motion Group, a travel and event management agency that caters to the wealthy.
The attempt to maintain a lower profile, however, hasn’t stopped travelers from upping the ante in terms of luxuries.
Just as with yachts and other toys of the super-rich, private jets are getting increasingly more opulent in terms of comfort and on-board luxuries.
“Rather than asking the captain to turn up the heat, owners can adjust the temperature, lighting and entertainment options from their iPhone,” Banglesdorf said.
Although supersonic jets are not launching for another eight to 10 years, plenty of the wealthy have already ordered one.
Supersonic jets travel 80 percent faster than a Gulfstream and cost $120 million, according to Aerion Corporation’s Jeff Miller.
“We won’t certify and deliver to customers until 2023,” Miller told Private Wealth.
Aerion’s AS2 supersonic business jet seats 12 passengers and must undergo flight-testing and approvals by the Federal Aviation Administration before Aerion can fill advance orders. The fractional jet ownership company Flexjet contracted with Aerion to purchase 20 supersonic AS2 jets.
“The Aerion AS2 is a genuine game-changer for international travel, providing the world’s only commercially available supersonic transportation, enabling travelers to have breakfast with their family in New York, enjoy a business lunch in London and be back home to help their children with their homework,” said Michael Silvestro, CEO of Flexjet.
Ehang has unveiled the first single-passenger drone that’s controlled by a tablet and capable of flying 60 miles per hour. The Chinese entrepreneurs indicate the first models will range in price from $200,000 to $300,000.
“You won’t need a pilot’s license to fly yourself,” Banglesdorf said. “If this takes off, it will change everything in the transportation industry, not just aviation.”
Private pilot Albert Goldson expects that the ultra-wealthy will add passenger drones to their treasure chest of gadgets and expensive toys, but without replacing their privately owned jet.
“Drone aircraft do not provide the special perks demanded by the high-end market and the last thing they want is for something to go wrong,” said Goldson, whose clients are high-net-worth individuals. “They would buy it for the fun of it but not for business purposes.”
Once flight plans are programmed into the passenger drone, which looks like a mini-helicopter, the passenger directs the aircraft by voice command.
“Transponders and other avionics will prevent the drone from colliding with trees, mountains, buildings and other aircraft,” said Banglesdorf.
