Private jet industry hit by COVID-19; why are companies rejecting lucrative offers from ultra-rich?

  • Travel restrictions by the governments to contain the pandemic caused by coronavirus has hit private jet industry too

  • Large amounts by ultra-rich did not work

While businesses are trying to profit out of the coronavirus or COVID-19 scare that has gripped the masses, the private jet companies are turning away the ultra-rich who wants private jet travel at any cost. The reason is, travel restrictions.

There are surge in bookings of private jets, but the restrictions imposed by the governments has hit the industry. Customers to these companies are offering lavish pay of upto $150,000 hoping to claim a spot on the jet, BNN Bloomberg reported. The restrictions have been put on order to contain the COVID-19, as it emerged as a pandemic. However, some companies have tweeted that they continue to provide the services.

Global restrictions, 'tourism frozen'

Kanika Tekriwal, founder of New Delhi-based JetSetGo said to the outlet "Rules are changing every half an hour, no one knows who's changing what, some countries are suddenly not allowing pilots of some countries, some countries are not allowing aircraft of some countries," as reported by Fox Business. Almost 90 percent of JetSetGo's scheduled bookings have been canceled.

American Airlines
Representative image Twitter grab

Rajan Mehra, running the Club One Air which has an overseas fleet of 10 planes, told that the company has seen travel decline almost 70 percent."Tourism is practically frozen for the time being and corporates are not traveling at all unless they have to," added Mehra, as per the report.

The restrictions in India includes flight ban from Europe and the UK, also including Indian passport holders in the UK, reported Economic Times. This would commence from Wednesday. According to predictions by CAPA Centre for Aviation the restrictions could push the global airline industry to bankruptsy as May ends. However, some companies are confident of flying with the same services.

Related topics : Coronavirus