Flights of fancy: why wealthy Australians are spending big on private jets

An increasing number of Australians are spending big on private jets for holidays, interstate meetings and relocating their pets in luxury. Charter planes flew almost 320,000 people in January, according to government figures, a 28% increase on the 250,000 recorded in January 2020, before Covid travel restrictions were introduced. While many passengers were staff sent to work in remote locations, aviation experts say much of the recent increase is due to wealthy people chartering private planes.

Some charter companies have doubled their profits, while others have searched for more planes as they struggle to meet demand. And even as commercial flights have picked up after Covid, clients once wary of the virus have remained loyal, now unwilling to risk cancellations and delays.

The Australian industry is not as developed as in Europe, where private jets are used to travel relatively short distances. High-profile celebrities have been criticised for flying privately on 10-20 minute journeys, generating tonnes of CO2 emissions.

But in Australia, the Covid pandemic has made private jets more appealing.

Global private jet charter broker Air Charter Advisors, which is based in the US but operates out of Australia, recorded a 104% increase in demand between 2019 and 2021. Demand dropped by about 12% in 2022 but has remained stable so far in 2023.

LeRoy said most flights in Australia were relatively short, between Sydney and Melbourne. He said some people fly private so they can travel with their pets, including rabbits.

In the wake of the pandemic, consumers across the country have complained of high prices and late services.

In December, the consumer watchdog put airlines on notice over high prices and said it would closely monitor services to ensure they were not deliberately slowing a return to full service capacity to increase profit margins.

In the same month, about a quarter of all commercial flights arrived late, according to the Australian Competition and Consumer Commission. That figure has fallen slightly in recent months, with the cancellation rate remaining steady at 3.1%.

Rick Pegus, the general manager of Navair, a charter company with hubs in Brisbane, Sydney, Dubbo and Melbourne, said only 20% of those who could afford to charter do so, with most people in Australia fairly conservative financially.

Michael Doohan, who owns the Gold Coast-based charter service Global Jet International, said the sector was scrambling for more jets to meet demand in Australia.

Andrew King, a senior lecturer in climate science at the University of Melbourne, said the booming private aviation sector was bad news for the environment.

Private jets are up to 14 times more polluting per passenger than commercial planes, with private jets emitting an estimated two tonnes of CO2 in just one hour, according to the Brussels-based climate research group Transport & Environment.

But many charter companies argue their impact is relatively small, given private planes account for about 4% of all aviation emissions.

Grudnoff said many families were struggling to make ends meet after consecutive interest rate rises, stagnate wages and soaring inflation. He said some would struggle to afford commercial tickets.