Home Headlines The rich are getting richer — and they’re fueling a private jet boom #rich #richer #theyre #fueling #private #jet #boom

The rich are getting richer — and they’re fueling a private jet boom #rich #richer #theyre #fueling #private #jet #boom

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Private jet demand is booming — to the extent that companies can’t produce them quickly enough and buyers are facing extended wait periods for deliveries.

Even secondhand business jets are vanishing from the market.     

“If you look at today compared to 2019, the market has almost exploded,” John Schmidt, global aerospace and defense industry lead at consultancy Accenture, told CNBC at the Dubai Air Show.  

The pandemic has converted a lot of travelers to private flying, many for the first time. But analysts say the trend is primarily attributable to a wealth boom in the last year and a half, specifically at the top echelons of society as more companies go public, the stock market hits record highs and spenders enjoy an extended period of low interest rates.  

Business jet take-offs and landings in the U.S. are up 40% year-on-year — and at their highest point since before the 2008 financial crisis, according to Morgan Stanley.  

Public listings by companies in the U.S. have already hit record highs in 2021. Data from Jefferies Equity Research shows that as IPO activity climbed, the volume of business jet deliveries rose in correlation with it.  

The market is also drawing in individual buyers looking for safer and more exclusive travel that guarantees greater reliability than commercial flying, which has been hampered by Covid-19 travel regulations.  

Amid the rise in demand in the high-end industry and rising inflation, prices of both new and used jets are are seeing their highest levels in years.  

Inventory of used jets — the proportion of aircraft for sale versus the number of said aircraft in existence globally — is at record lows, around or below 3% for most major jet manufacturers including Cessna, Dassault, Gulfstream, Bombardier and Embraer, Jefferies says.  

Private flight activity is not only up in the U.S. but also 20% higher in Europe, Schmidt said. “Things are really tight in used business jet aircraft, inventories the lowest we’ve seen in years, and yet prices are 20 to 30% higher,” he added. “So it’s a really hot market right now.” 

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#rich #richer #theyre #fueling #private #jet #boom

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