Steve VarsanoFounder at The Jet Business

The Jet Business Reuters Editorial January 2012

Name: The Jet Business Reuters Editorial January 2012
Uploaded: 2012-01-26T11:03:14+00:00
Duration: 1 min 41 s
Channel: Steve Varsano
Description: In a Reuters video report, journalist Hayley Platt covers the opening of a novel London showroom by aircraft broker The Jet Business. The centerpiece is…

26 Jan 2012 · 2 min

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1:41

In a Reuters video report, journalist Hayley Platt covers the opening of a novel London showroom by aircraft broker The Jet Business. The centerpiece is a full‑size replica of an Airbus A319 fuselage, allowing prospective buyers to walk inside a luxury jet before purchase—a world‑first aimed at reducing buyer uncertainty for aircraft that can cost up to $90 million. The showroom also features an 8‑meter interactive computer wall, controlled via an iPad, that accesses a database of roughly 18,000 new and used private jets worldwide to match customers with suitable aircraft. Founder and owner Steve Varsano explains the sales process, outlining four key questions—budget, aircraft age, passenger capacity, and destination—to guide selections. Market context is provided by James Lawson of Ledbury Research, who notes a 10‑11 % decline in new jet sales following the 2008 financial crisis, highlighting the need for innovative retail experiences in the luxury sector. Varsano emphasizes that the business can succeed with a modest client base and hints at plans to open additional showrooms globally.

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Buying a private jet has just become easier thanks to a new showroom in London. It's been set up by The Jet Business, an aircraft broker which is offering its customers a world first. It's giving them the chance to see inside a luxury jet before they buy. This is a full-size replica of an Airbus 319's fuselage. A new one can cost up to $90 million, so being certain before you buy is important, says Steve Varsano. The firm's founder and owner.
I think that anybody who can afford a jet, whether it's the corporations or high net worth individuals or governments that are based in Africa, Europe, the CIS countries, or in the Middle East, they all come through London. So this is a place really to try to catch them when they're coming through the city.
Sales of corporate jets slowed following the global financial crisis of 2008. Credit became more difficult to get and companies were reluctant to spend. And little changed last year according to James James Lawson from Ledbury Research.
If you look at the private jet market in terms of new sales, sales of new jets, it's been down about 10-11% last year. So people are looking for new ways to sell and distribute luxury goods, and the retail experience is one that many luxury brands are focusing on. How do we make the shopping environment more attractive, more engaging for the luxury consumer?
Varsano has also installed an 8-meter computer wall. It's powered through an iPad app and contains details of the 18,000 private Private jets, new and used, available around the world. The computer finds a plane to suit the customer.
There's basically 4 questions that we would ask somebody who really doesn't know anything about the aircraft market. The first, of course, is price. So if we put a budget in here of $30 million, and then we go to the second question is how old of an airplane you'd want, and then we go into how many passengers that you'd want to carry, and of course the most important is Where do you want to fly to? So let's say from here we go from London to Dubai.
Prices start from $1 million up to around $80 million depending on age and condition. Varsano agrees it's a tight market at the moment, but he says the business doesn't need many customers to make it successful. And if things take off as he plans, he'll open further showrooms around the world. Hayley Platt, Reuters.