As the private aviation charter market continues to enjoy a "new golden age", Geneva-based LunaJets warns at this EBACE of a hard landing as it sees more signs of market bubbles.
"This year-to-date, our growth is over 90%, considering a $110M revenue in 2021 for our private jet charter division" comments Guillaume Launay, LunaJets Sales Director "our Web platform model and industry position puts us at the front line of any market changes; and I can tell you that the shift has been dramatic" Launay adds.
LunaJets' website and mobile app receives thousands of visitors every day. A large portion of whom are newcomers who aim to avoid post-Covid commercial airport and airline experience at any cost. Last year, LunaJets acquired north of 1,000 new clients.
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Eymeric Segard, CEO and Alain Leboursier, Managing Director Photo LunaJets |
Segard adds "Most of our competitors have either been acquired, gone into administration or are currently for sale. With our long-term track record and cash rich balance sheet we are ready to seize any opportunity as we expect more consolidation ahead when the market reverses".
Segard lists his view of the risks for the industry:
Post-Covid recovery mostly based on new clients and short flights, rather than existing and long haul.Business clients have not returned to pre-Covid level as video and remote working are still favouredFinancial market volatility may send new clients back to commercial airlinesThe crypto wealth effect may disappear as fast as it stormed our industryWar in UkraineSupply chain disruption will delay plane delivery and maintenancePilot and crew shortageImpact of inflation on charter ratesRising cost of debt and financing will impact the velocity of sales and acquisition marketIPO's, SPAC's and M&A activity at nonsense prices will fadeNew Covid variantsSustainability regulations
LunaSolutions, the sales & acquisition division of the group, is also experiencing a strong year and hits a new record of transactions. "We see aircraft that we sold within the last 18 months coming back on the market at a premium of 50%" comments Alain Leboursier, LunaJets MD. "The market has shifted from struggling to find buyers to struggling to find enough good aircraft in a few months. The situation is very similar to the charter market, and maybe worse than the 2008 bubble peak" fears Leboursier.
"We will continue to diversify our revenue stream into other aviation services markets. During Covid we opened a new Cargo division, LunaLogisitisk, and a Group Charter division, run by Rémi Aubin in Paris, who has already organised flights for more than 18,000 passengers this year".