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Family offices have experienced explosive growth in recent years. According to a recent report by Deloitte Private, there are an estimated 8,030 single family offices in the world today, up from roughly 6,130 in 2019. The estimated wealth of families with family offices currently stands at US$5.5 trillion. This is up from US$3.3 trillion in 2019 and is expected to grow to US$9.5 trillion by 2030 – a 189% increase.

The North America region is expected to undergo the greatest growth, with its number of family offices expected to nearly double from 2,210 in 2019 to 4,190 in 2030 – a 90% increase.

However, Asia Pacific is gaining considerable steam and has surpassed Europe in terms of its number of family offices (2,290 versus 2,020 for Europe). It is expected to outpace North America in terms of its speed of growth between now and 2030.

As the family office sector grows, so does its focus on business aviation.

In March 2024, Airbus Corporate Jets (ACJ) commissioned research with 100 large U.S. family offices, with an average of $3.35 billion in assets under management per organization, to see how they currently use business aviation, and how this is likely to change.1

Of the family offices surveyed, 75% own a business aircraft; 34% said they lease one; 11% said they had access to a private jet through fractional ownership; 9% said they used charter services and 3% used jet card membership programs.

87% of US Family Offices are open to Using Corporate Business Aircrafts for Philanthropic Purposes

The survey with U.S. family offices reveals 87% are open to using their aircraft for philanthropic purposes.

Over three quarters (77%) say they support local or national charities by providing them with some access to their aircraft, and almost half (44%) say they support the Corporate Angel Network (CAN), a U.S.-based 501 nonprofit organization that helps cancer patients access the best treatment by arranging free travel on corporate aircraft. Some also provide access to their aircraft during a crisis situation such as humanitarian relief or emergency evacuations.

For those U.S.-based family offices interviewed that don’t currently make their aircraft available for good causes, half say it is because they have not appointed anyone to manage this, and 30% say it is because they don’t have enough spare capacity to start using their aircraft for this purpose.

However, of those interviewed who don’t currently make their aircraft available for charitable and humanitarian causes, 39% say they hope to start doing this within the next two years, and 54% say they hope to do so in the next two to three years.

Over the next three years, 9% of U.S. family offices surveyed say they expect the use of their business aircraft for good causes to increase significantly, and a further 67% say they expect it to rise slightly.

A key reason why U.S. family offices are making their aircraft more available for humanitarian and charitable causes is because they are focusing on increasing their levels of philanthropy.

Swelling Family Office Assets Fuel Philanthropic Ambitions

In 2019, the total estimated wealth for families with family offices was US$3.3 trillion. Today, it is US$5.5 trillion, reflecting a 67% increase since 2019, with expectations for it to almost triple to US$9.5 trillion by 2030. This constitutes an expected 189% rise in family wealth between 2019 and 2030.

Nearly one in four (23%) say they had seen the value of their assets grow by between 10% and 25% in the past three years, half (51%) say they have increased by 25%–50%, and a quarter (24%) say they have grown by more. Just 2% say they have grown by 10% or less.

This influx of new money is changing the face of wealth and has contributed to increased levels of philanthropy. Over the next two years, 86% of those interviewed in the study plan to increase their budget for philanthropy – 12% expect a significant rise.

16% of those surveyed say their budgets dedicated to good causes have increased significantly over the past three years, and 47% say they have risen slightly. One in five (21%) say they have stayed the same, and just 15% believe they have fallen. One percent say they didn’t know.

For those that have increased their budget for philanthropy in the past three years, 59% say it has risen by between 20% and 30%, and 19% say it has increased by between 30% and 40%.

When asked to select the three main factors influencing family offices’ philanthropic decisions, respondents identified personal impact as a significant driver. Specifically, 46% prioritize causes that directly affect their family, while 66% are swayed by those impacting close friends. Engagement also plays a key role, with 48% favouring causes that offer substantial involvement opportunities. Moreover, 47% are inclined to support underfunded causes that have recently come to their family’s attention.

US Based Family Offices Prepare to Upgrade Business Aircraft

93% of the U.S. family offices surveyed say they expect to upgrade their business aircraft to improved or newer models within the next five years.

The study reveals that 75% cite a growing focus on operational costs as a reason for wanting to upgrade their business aircraft, followed by 73% who say it is because newer, more fuel-efficient models have been launched.

Other reasons cited for wanting to upgrade include the need for bigger aircraft as more family members and staff are using business aviation, and the need for larger aircraft with greater range.

Of those U.S. family offices surveyed that charter business aircraft, 87% say they are focusing more on chartering newer, more efficient jets to help reduce the impact of their flights on the environment.

Sustainable aviation fuel (SAF) currently has a price premium compared to standard jet fuel, but 97% of U.S. family offices interviewed say they would be prepared to increase their travel budget for business aviation to enable their flights to use SAF more. Just over two-thirds (68%) say they would be prepared to increase their budget by over 25% to ensure they could make more use of SAF or newer, more fuel-efficient aircraft, and 31% say they would be prepared to increase it by at least 50%.

Outlook

The number of family offices worldwide and in the U.S. is growing rapidly, and as this happens the sector is increasingly focused on business aviation, which includes using their aircraft more to support their philanthropic and humanitarian causes, to a growing focus on the well-being of family members and staff.

It is also being driven by significant innovation in the business aviation sector, with new models launched and a growing focus on enhancing technology on- board and improving its sustainability record through new tech and investing in sustainable aviation fuel. Many family offices that own or lease their own aircraft are also considering upgrading to improved models.

As well as using business aircraft for family members and staff, U.S. family offices are increasingly using them to support good causes. This is also driven by their growing commitment to philanthropy.

The family office sector remains one of the most attractive for the business aviation market, and sales in this area are set to increase.

ACJ TwoTwenty: ‘The Xtra Large Bizjet’

Like most of us, I like a smooth flight, and I always marvel at human ingenuity which brought us airplanes and travel at the speed of sound. makes some great airplanes, but its factory in Everett, Washington, is a much further trip for me than a quick trip to Toulouse in the South of France.

Airbus, established in 1970, has soared to aviation industry leadership, clinching the top spot in both airliner and helicopter production by 2019.

Airbus Corporate Jets entered the Business Aviation market in 1997 and offers a range of large business aircraft. The recently launched ACJ TwoTwenty is carving out a whole new market segment – ‘The Xtra Large Bizjet’.

From what I’ve seen, the ACJ TwoTwenty takes the crown of business jets, offering twice the cabin real estate compared to similarly priced ULR business jets with market-leading fuel efficiency and unrivalled reliability. It occupies the same parking footprint as competitive Ultra Long Range Jets and can take off from the same airports, but the ACJ TwoTwenty operating costs are one-third less while offering superior (2x) value retention.

With a range of up to 5,650 nm (more than 12 flight hours), the ACJ TwoTwenty can meet the requirements of 99.9% of all U.S. departures,2 connecting city pairs including Los Angeles to London, Miami to Buenos Aires, and New York to Istanbul.

As with all ACJ aircraft, the ACJ TwoTwenty is capable of flying with up to a 50% blend of kerosene and sustainable aviation fuel (SAF) while keeping to the technical specifications of Jet A. All Airbus commercial aircraft and helicopters will be capable of operating with 100% SAF by 2030. This capability will play

an important role in the sector’s decarbonization journey.

Over 200 Airbus corporate jets are in service worldwide.

Notes

1. Airbus Corporate Jets commissioned the independent research company Pureprofile to survey 100 senior executives at large U.S. family offices whose organization has on average $3.35 billion in assets under management.
2. Airbus Corporate Jets analysis of WingX data, January 2024.