Dealmakers are getting ready to return to the office in some sort of fashion this fall, but the next question is: will they return to pre-pandemic levels of business travel? Many of the dealmakers we’ve interviewed recently say they are doing limited travel. They have also said that travel is a very large expense for a firm to take on, so I don’t expect it to return to pre-pandemic levels, but it will come back in some sorts.
Meanwhile, PE firms are once again pursuing deals in the travel sector. The halt in travel during quarantine has created attractive buying opportunities for private planes. In June, KKR invested $150 million in private plane operator Jet Edge International. Jet Edge CEO Bill Papariella told Mergers & Acquisitions at the time that the investment “comes at an ideal time for Jet Edge as the demand for private jets continues to increase.” Jet Edge manages a fleet of Challenger and Gulfstream planes. As long as restrictions continue to ease, then people will continue to get more comfortable with flying again.
I am flying for a family trip this fall, and I know a lot of people are taking flights for vacations this summer. How comfortable are you traveling again? Let me know. E-mail me at: [email protected].
– Demitri Diakantonis