James Royds-Jones, Private Jets Director, APAC, speaks with ASGâs Jeffrey Lowe on the private jet charter market in APAC. He starts off with the background of Air Charter Service â just a basement start-up in the house of Founder Chris Leach and discusses the companyâs worldwide reach with over 30 offices and a diversified business scope â cargo, passenger, and group. James gives his views on the charter market during COVID-19, how there are no easy charters in Asia â even before COVID, speaks on the sales approach to new customers and touches on illegal charter.
Listen in as they discuss:
Jamesâ personal background and experience (0:40)
Air Charter Service Founder, Chris Leach: starting in the basement of his house to today 30 offices worldwide (2:16)
A family business approach to customer service (2:54)
ACSâ geographic distribution: starting in London and moving across the world (4:35)
All facets of the charter business: cargo, private jets, and commercial (5:36)
Diversification & geographic scope aids in the current environment (7:30)
How was 2019?; How is business ânormallyâ?; Working Hard (8:33)
ABACE 2019 was an indicator: quieter than normal, operators going out of business & reducing fleet sizes, tough years (9:29)
Preferences in Asia: Bigger is better, shiny & new, short hops, Bombardier & Gulfstream (10:35)
COVID-19 comes around and hits the radar around Chinese New Year (13:05)
Moving into February, clients then looked to leave the region to the US & Europe (14:35)
Coping with COVID-19: The phones start ringing & the ACS team camps out under their desks to provide support and that âcan-doâ attitude (15:24)
The different phases of private, commercial, and cargo during COVID-19. Private jets first. (17:50)
Commercial group flights: Repatriation flights, followed by a lull, some new group activity now (19:46)
Cargo experienced a prolonged, big spike from March to July (20:43)
An inflow of PPE, followed by an outflow of PPE (21:27)
Commercial airliners moving into the cargo business (22:04)
Diversification, resources and size allows ACS to weather the storm (22:43)
The status of private jet charter market today â less than ideal. Record inquiries are up, but making those flights happen is difficult, with a very low conversion rate (25:03)
There are no easy charters in Asia, hence the need for brokers (26:20)
Extra measures during COVID-19 and responding to individual preferences from each passenger (27:16)
The health & safety measures are here to stay, and private flying is even more appealing (29:42)
Fleet availability in APAC: owner aircraft vs dedicated charter; Aircraft and the pool getting smaller (31:26)
But more demand for private flying, as commercial becomes a less viable option. Perfect storm: less supply / higher need. Oh! And a global recession (33:54)
Asia lacks fractional ownership and membership programs, so charter is the only way to go (35:09)
Proactively keeping customers updated through e-mail and video during COVID-19 (37:00)
Changing approach to customers - hunters vs harvesters and the new types of customers (38:45)
Owner-operators now less likely to charter an illegal flight (41:31)
Do we need to do more and what? (42:10)
Thereâs no grey charter only illegal charter, role of AsBAA and educating users (43:00)
What needs to change? Price difference between charter in Asia vs. the US and Europe - more infrastructure is needed! (44:33)