Despite its well-known brand name, Virgin Charter has not been immune to the economic downturn. The charter marketplace saw a drop in business last month, and particularly within the last two weeks, according to founder and CEO Scott Duffy. The reported decrease is in line with the drop in revenue reported by a majority of charter operators and brokers. Most indicate that business has dwindled by 10 to 40 percent.
Many Virgin customers have begun “trading down,” Duffy said. “Customers who would have purchased a heavy jet are now purchasing a super-midsize jet,” he said. “Those who would have purchased a super-mid are now going for a light jet.” Transaction activity has also slowed, but Duffy did not provide exact figures.
Duffy is hopeful, however, that the economic downturn might actually help business in the long run. Since the business model relies on operators competing to provide the best offers, Duffy believes more people will be drawn to the Virgin Charter Web site. “People still want to fly private,” he said. “They’re just looking for a more affordable way to fly.”
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