https://www.bloomberg.com/news/articles/2019-03-07/scammed-at-40-000-feet-opaque-market-costs-the-jet-setting-rich
Five grand for mystery sushi. Seven for plastic cups. And more fuel than the
plane could possibly hold.
Such are the deceptions stinging the billionaires and mere millionaires of
billing related to private-jet travel are on the rise.
It says as much about this era of hyper-wealth as about modern-day fraudsters.
So much money is sloshing around the world that, inevitably, crafty operators
are seeking a slice, trying to help themselves to what they figure is a mere
rounding error to a billionaire. About a third of private-jet owners are worth
more than $500 million, according to a 2018 report by VistaJet and Wealth-X.
Some fraud attempts are almost comical. One jet owner found himself charged
4,000 pounds ($5,300) for 240 sushi boxes apparently served on board his jet
while it was empty, according to My Sky, a company whose software helps
scrutinize and manage private-jet costs. Another was charged 6,000 euros
($6,800) for plastic cups after the provider mistakenly added two zeros to the
Keeping Track
Part of the problem is the sheer quantity of paperwork and bills associated with
private air travel. One flight can generate dozens of invoices, for fuel, food,
over-flight permissions, airport fees, on-ground services, crew hotels,
re-positioning flights and maintenance. And every trip is different. That makes
it hard for globetrotting billionaires to keep track.
understand the cost structure, so if someone puts an invoice in front of them,
Advisory Services.
by ultra-wealthy households, they likely run into the billions of dollars a
year.
There are 21,000 business jets worldwide, which cost their owners about $32
billion to run. This sum can be decreased by a quarter if operations are
optimized, My Sky estimates.
One jet broker, who asked not to be identified when talking about potential
owners to fall out with their management companies.
Some aircraft operators now say that providing transparency has become an
essential selling point.
Jet Concept, adding that their clients can find invoices on its online portal
But frustration remains high with the industry. A chief operating officer for a
and recently switched to a new one. The old company gave him information that
he said.
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