The phenomenon of “family offices in motion” that this news service has chronicled has one, perhaps obvious conclusion: family offices want to have convenient air travel of the kind that business jets can convey.

Research commissioned by ACJ, carried out among senior executives from family offices collectively running $303 billion in assets, shows a definite shift toward cross-border activity. And they are increasingly dependent on private aviation to manage it efficiently.

“As family offices become more international, business aviation is increasingly becoming a strategic necessity,” Chadi Saade (pictured below), president of Airbus Corporate Jets, said in a statement. “Our study indicates that private aviation is not only enhancing operational efficiency but also enabling a more connected and productive workforce – one that increasingly spans multiple continents.” (This news service also conducted this video interview with Chadi Saade two years ago.) 

Chadi Saade

The health of the world’s’ private and business aviation sector can be a measure of the vigor of international wealth management and the confidence of high net worth and ultra-HNW individuals. It is also to some extent a barometer of globalization. This news service regularly checks in on the sector. (See here and here.)

Spreading their wings
Over the past five years, nearly 70 per cent of family offices surveyed said they have opened new offices in different jurisdictions. More family members live abroad or across multiple countries. Their investments are diverse and they want to spread geopolitical risks. 

Almost all the executives interviewed said they expect even more family members to reside in different countries over the next three years, the ACJ survey said. 

At present, 70 per cent of family offices’ business aviation travel is conducted via private aircraft, outpacing commercial routes. Over the past two years, 96 per cent of family office executives surveyed said their use of private jets has increased, and every single respondent believes it will continue rising over the next two years. In fact, 85 per cent expect a 50 per cent to 100 per cent increase in usage.

The top-ranked benefit of using business jets cited by family offices surveyed was greater flexibility to work during flights, particularly on confidential matters. Having more control of their schedule was ranked second, with privacy and faster travel times ranking third and fourth respectively.

The time-saving impact of business aviation is an important driver of corporate jet usage. The research indicates that 89 per cent of family office executives save between two and three hours per trip by using business aviation, compared with flying commercially. Nine out of 10 (92 per cent) also say they are at least 25 per cent more productive on private aircraft.

In another finding, 67 per cent of respondents said that 25 per cent to 50 per cent of their private aviation trips are made to destinations not served directly by commercial airlines.

Demand for different types of aircraft is also expected to rise, with 43 per cent expecting a 50 per cent to 75 per cent increase in large jet use.