BizavNews closely monitors all information on the situation on the business aviation market. The world is faced with an unprecedented situation due to the rapidly growing spread of COVID-19. Countries were isolated from countries, people from people. You don't have to be an analytical agency to understand how much air traffic has dropped worldwide. The decline ranges from 45% to 85% over previous years. And it's not a drop in demand, but the fact that organizing a flight to another country has become extremely difficult due to the closure of the borders of all countries in order to prevent the spread of the virus. It's time to talk about the present and future of business aviation. Today, the head of JETVIP, Alexander Osit, is again visiting BizavNews.
Alexander, a month and a half has passed since our last meeting. Has the situation changed, how do commercial carriers and brokers feel in the market?
In general, the state of the business aviation market is now consistently difficult. There is no doubt that many private and commercial airlines will be seriously taken over by others or go bankrupt. Some airlines have relocated their aircraft for long-term parking in relatively cheap airports with further conservation, and are also trying to minimize all possible costs in order to survive until "better times".
The situation is no easier with business aviation brokers who are engaged in the selection and lease of an aircraft for clients. I can say the following, if a brokerage company is not looking for new growth points and does not introduce innovations, then most likely it will soon be forgotten, as more purposeful and young companies with a completely new development model will leave behind those who still use old methods and strategies. The world and all of us are changing very quickly in recent years, some will not have time to adjust to the changes and will be forced to go astray. If you are no better than other companies, then why should the client go to you? If you cannot answer this question, then change urgently.
But enough about the bad news, as the dynamics of flights are gradually improving due to the fact that people and business are beginning to adapt to new realities. Already in mid-May, business aviation began to come back to life step by step after an unprecedented drop in the number of flights. These are still fragile steps, but they will intensify as international borders open and the economy recovers. Our company expects a real revival and resumption of flights closer to autumn 2020, subject to a significant improvement in the situation with the spread of the virus. Domestic tourism will be on trend, as most countries will try to limit outbound tourism in order to prevent the spread of the virus.
Our next question is quite simple, but it is the most relevant at the moment. Is it possible to fly now and what problems do passengers and operators face?
Business jets fly around the world every day, and Russia is no exception, but there are serious restrictions for both passengers and airline crews.
International flights are limited both by Russia and by other countries. Each country has formed its own requirements for obtaining a flight permit. In general, these requirements are almost the same and are reduced to almost the same flight objectives, namely: repatriation of citizens, possession of citizenship, residence permit (residence permit), family reunification, study at foreign schools and universities, work permit, medical flight, diplomatic mission , humanitarian flight, etc. For a complete list of restrictions and requirements of all countries, please visit the International Air Transport Association (IATA) website. Therefore, when asked whether it is possible to fly from Russia to Europe, the answer is yes, but you must have the aforementioned documents of the country where you are flying, otherwise access to this country is closed for you. Moreover, after arrival, you will most likely be obliged to comply with a 14-day quarantine, and it’s good if you are allowed to spend it at home, and not in an observatory, again, each country regulates this issue independently.
On domestic flights within the Russian Federation, the demand for such directions as: Republic of Altai, Krasnodar Territory, Crimea Peninsula has noticeably increased. Business travel dropped significantly in April, but also showed strong growth in May. Upon arrival, you must spend 14 days in quarantine.
If all flights are compared in percentage terms, then for our company, flights within the Russian Federation account for about 65% of the total, the remaining 35% are international destinations.
In conclusion, I would like to add that neither business nor people can stand still for a long time.
Everyone needs dynamics and freedom. That is why people who value these components choose business aviation.