As President Trump is considering travel bans to countries with high levels of coronavirus infection, Americans have found it difficult to stay close to their homes for spring and summer vacations. Even though the demand for booking tickets on American, JetBlue, Delta and Alaska Airlines has decreased, the ban has not taken effect yet.
Kenny Dichter, CEO of Wheels Up, said that at the moment, the demand for private aviation has increased globally because of the coronavirus outbreak. "Wheels Up's individual demand, corporate demand, as well as interest in our program, have increased ever since the corona report was published," he stated.
Of course, most people can't afford to use private planes. Moreover, the cost of Wheels Up flights varies depending on the type of aircraft, as well as on the duration of the flight. For example, according to Dichter, the cost of a trip of seven or eight businessmen from New York to Washington, D.C., will range from $ 400 to $ 500 per seat. For larger aircraft, the cost may increase to 9-12 thousand dollars per hour. Dichter also shared that Wheels Up's addressable market employs several million people, consisting mostly of companies that earn between $ 10 and $ 20 million a year.
Nevertheless, most people refuse to travel by air.
Along with the performance of America and the collapse of most stocks, European stocks are also declining due to the virus alert.
Warren Buffett's Berkshire Hathaway investment holding has lost $3 billion because of the declining airline shares.
Moreover, Air carrier Flybe has declared bankruptcy yesterday, amidst the declining demand for air travel.
Shares of American Airlines also plummeted shares plummetted.
Stock markets across Europe closed on Thursday, as concerns about the impact of the coronavirus outbreak persist, despite hopes that stimulus from governments and central banks could protect the global economy. The ECB will most likely lower its deposit rate next week, joining the other Central banks from US, Canada and Australia, to reduce borrowing costs.
The DAX has 30 lost 183 points or 1.5%, and amounted to 11,945;
The FTSE 100 has retreated 110 points, or 1.6%, and amounted to 6,705;
The CAC 40 declined by 104 points, or 1.9%, and amounted to 5,361;
The FTSE MIB index fell to 391 points, or 1.8%, and amounted to 21,555;
The IBEX 35 dropped by 227 points, or 2.6%, and amounted to 8,683.
