Business News: VistaJet, charter airline for private planes, aims for carbon neutrality by 2025.
Personal jet company VistaJet outlined plans to achieve carbon neutrality by 2025 in an effort to get the aviation industry’s sustainability goals off the ground. The technique consists of carbon offsetting schemes that contribute to the safety of forests in Zimbabwe and the Brazilian Amazon, as well as the option for buyers to pay more for sustainable fuels such as biofuels.
VistaJet’s founder and president said the company’s shared financial system business model, which “competes with full ownership of the aircraft” by giving subscribers access to its fleet of 160 non-public jets, means potential customers will be particularly keen to reinvest financial price savings into sustainable add-ons.
“The price and cost benefits we offer allow for that premium,” Thomas Flohr told CNBC’s “Squawk Box Asia” Thursday. So far, he said, VistaJet has seen an 80% higher adoption rate among customers opting for compensation programs.
Flohr said the company will also implement “cutting-edge technology” for route planning, including artificial intelligence to predict customer behavior and reduce empty legs to the “lowest possible level.” “This is really one of the problems with corporate jets. Some of these empty flights can be as much as 50% compared to a shared model where it is constantly optimized, “he noted.
The plans come because the airline business faces constant tension to reduce carbon emissions and improve sustainability practices, also because it is struggling to recover from coronavirus-induced success to travel around the world. At the moment, the global aviation sector is focusing on a 50% reduction in carbon emissions by 2050.
Regardless of the criticisms of personal jet flights, whose low passenger numbers are sometimes seen as more inefficient than options alternative business, Flohr said he believes the business is at a downturn. While corporate airlines may take several years to return to full capacity due to a pandemic, companies like VistaJet can now use smaller, full-capacity aircraft, he said.
“When it comes to business efficiency, we’re not really keeping a CEO on a flight,” Flohr said. “We actually only take off if we now have a fully paid and full cabin.” Already in these 12 months, business travel restrictions have been a boon for VistaJet, with demand for corporate registrations more than pre-pandemic intervals within the first quarter.