Private air travel is a rapidly growing segment within the aviation industry, with many looking to the mode as the way of travel for the future for both business and pleasure. General aviation airports, in particular, have an opportunity to build on this momentum.
With the rise in private business travel during the pandemic, general aviation airports are seeking to lock in revenue through the development of facilities specifically for private aviation. Passengers may be flying on a plane they own or in a corporate jet. Private and business travelers also might be on a plane through fractional ownership — an arrangement by which people or businesses share ownership of a plane, giving each partner anywhere from 100 to 1,000 hours of use per year without the cost and commitment of full-time ownership.
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Private air travel is a rapidly growing segment within the aviation industry, with many looking to the mode as the way of travel for the future for both business and pleasure. General aviation airports, in particular, have an opportunity to build on this momentum.
With the rise in private business travel during the pandemic, general aviation airports are seeking to lock in revenue through the development of facilities specifically for private aviation. Passengers may be flying on a plane they own or in a corporate jet. Private and business travelers also might be on a plane through fractional ownership — an arrangement by which people or businesses share ownership of a plane, giving each partner anywhere from 100 to 1,000 hours of use per year without the cost and commitment of full-time ownership.
Seizing Opportunity
Many airport sponsors are looking to expand operations to incorporate more capacity on-site for private air travel and recognize additional revenue from this transportation option. In some cases airports would need upgrades to have the ability to accommodate the facilities required to sustain an increase in private aviation, such as terminals, hangars, fueling facilities and ground service equipment shops. One method is to go through a lengthy advertisement process to request proposals from fixed base operators to develop available land. A second is to develop facilities themselves to serve private aviation. By bringing in an integrated design-build team, a solution can be developed to fit the needs for getting facilities built quickly, on budget and on schedule.
Financing can cause significant challenges with these projects. If the airport’s capital improvement plan doesn’t have room in the budget for a new facility immediately, a third-party integrated developer can often work with the airport sponsor to create a financing plan to get the airport into the market more quickly. The developer would finance the project immediately and then sell it back within a year or two after the airport has time to incorporate the new facility into the overall capital improvement plan and operating budget.
Additionally, if an airport has land nearby that hasn’t been developed due to any type of contamination or lack of utilities, environmental specialists and civil engineers can be brought in to restore the area and make the site shovel-ready. This is often the first step before a hangar or terminal can be designed for a private facility. A program management system may also need to be developed and implemented to manage these projects to meet both financial and schedule expectations of the airport and governing body.
Sustainable Practices
An increase in access to private air travel also provides the benefit of an increasing use of sustainable aviation fuel (SAF) and electric ground service equipment (eGSE). By implementing less carbon-intensive options for a fuel source, airports can help contribute to a more net zero–focused future.
SAF can be produced from soybean oil to help supply the fuel needed for aircraft. Additionally, SAF can be sourced from canola oil, distillers corn oil, beef tallow, white grease, poultry fat, yellow grease and used cooking oil. SAF is an alternative fuel source that airport sponsors can work with fuel suppliers and tenants to continue to implement as private air travel continues to grow.
Powering tugs, carts and other ground service equipment vehicles with electricity, (eGSE) is a new trend that can be implemented instead of using petroleum-based products like diesel or gas. The conversion of this equipment may be slow and require a feasibility study and financing plan. Additionally, new charging infrastructure, including chargers, distribution lines and upgrades to substations, may be required to meet this new demand. Airports needing new electric facilities for vertiports and associated electric aircraft may further exacerbate the need for electrification upgrades.
SAF and eGSE are just two solutions that can help these airports meet their long-term environmental, social and governance goals, which makes the viability of private air travel as a potential main source of travel more of a possibility in the future.
While there is still much development that needs to occur to have private air travel become a more viable transportation option, the pandemic-related increase of use of private travel is spurring interest in potential opportunities. There is great potential for including more sustainable practices and providing more flexibility for those interested in a comfortable, convenient and environmentally friendly travel experience.