Shifting the Private Aviation Industry

Throughout the pandemic, the private aviation market has grown fleetly. With an enlarged demand for private flying, the industry faced a shortage in aircrafts. The shortage in aircrafts and rapid rise in oil prices, it has caused many private charters to change their business models.

Previously, the typical business model for private aviation charters was a membership-based service where customers would buy into membership and fly when and to wherever they want. This business model became extremely costly as members were able to fly from coast to coast and must carry multiple types of aircrafts for their clientele.

Although with rising oil prices, it became unbearable to with stance this business model. Many competitors have switched to an on-demand service where people can book a flight whenever they need. Having this type of service does provide customers with additional options such as ridesharing and booking a few seats out of a jet. Despite, having a large selection of services and flights, this causes their hourly rate to be much higher than the industry’s average. In a company with higher hourly rates, it devalues one’s experience as it makes it less exclusive and personal.

LIVT has created a unique business model as they are a regionally focused membership-based service. Being regionally focused allows members to choose designated service areas that they would typically fly in while providing some of the lowest rates on the market. The majority of private fliers typically travel within a 3-5 hour radius of their city. Based on their extensive market research, it has allowed them to have below-average rates while maintaining its exclusivity and level of personalized service.