In episode 6 of From the Cockpit, the Magellan Jets podcast, President and Founder Anthony Tivnan discusses how the coronavirus situation continues to impact flight activity and private aviation. Tivnan also examines why you should reconsider fractional ownership for jet card membership programs, as well as explains his optimism for May and June travel. Click the link below to listen to the full From the Cockpit episode.
MAGELLAN JETS PODCAST: FROM THE COCKPIT EPISODE 6
Looking back on the state of the market in March and April, Magellan Jets President Anthony Tivnan acknowledges that the COVID-19 impact has been huge on all industries. For business aviation, Tivnan estimates that it’s down anywhere from 70% to 90%, varying from company to company, in April.
“This type of situation is detrimental to all industries,” says Tivnan. “It’s important that we’re all helping each other out, providing information, providing insight, so as an industry, we can get through this together.”
While flight activity has been down due to the coronavirus pandemic, Tivnan is optimistic for May and June. The Magellan Jets president reveals that he’s seeing an uptick in new clients, many of whom are booking their summer travel.
“Already we’re seeing a little bit of light at the end of the tunnel,” says Tivnan. “It certainly seems to be opening up.”
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COVID-19 impact: Fractional Ownership
Additionally, Tivnan notes how “the impact on the industry is historic” and “unprecedented,” forcing many businesses to reevaluate their private aviation portfolios.Tivnan believes that fractional ownership will be particularly impacted, as business travelers in particular seek more flexible options.
Specifically, he points out how fractional companies rely on their own fleets of hundreds of aircraft, with thousands of pilots. Add in the many layers of bureaucracy, and it makes it difficult them to adapt to the times.
“Being able to adjust with speed in order to keep the business sustainable at this point is crucial,” says Tivnan, comparing fractional programs to cruise ships that can’t turn quickly, as opposed to speed boats which can. trying to turn a cruise ship quickly as opposed to a speed boat. “Our business model allows us the agility of the speed boat, even from a supply-chain perspective.”
Since Magellan Jets doesn’t own a fleet and uses a preferred network of premium partners, it “allows us to be more flexible and pivot” to meet the needs of the business world.
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Finding certainty with Magellan Jets
“Our members and our guests enjoy our business model because it’s very simple for them to get in,” says Tivnan. “It’s not a long-term commitment.”
“In times of uncertainty, it’s really difficult to navigate and to make decisions that are going to impact your business for the next three to five years, or if you’re purchasing a plane, sometimes even longer,” he adds. Tivnan goes on to explain how Magellan Jets’ model allows you to purchase jet card membership in 25, 50, 75 or more hours so you can “just use what you need and assess the situation on the other side.”
“We’re very optimistic in terms of our product offering and our business model,” says Tivnan. “We’re skating to where the pucks going to be and we do think that is having a very sustainable and flexible business model.”