London based company Colibiri Aircraft, which specialises in the resale and purchase of preowned aircrafts worldwide, has reported that private jet sales amongst first time buyers have gone sky high! They believe the increase is due to a dramatic increase in the number of high net worth individuals and falling prices.
According to the company’s research, approximately 1/5 private aircrafts were sold to first time buyers in 2017 – a massive 50% rise when compared with 2014. The company has put this down to a number of factors, the first being the increase in those with significant personal wealth to spend and a dramatic price drop in preowned aircraft between 2014-17.
According to Knight Frank’s 2018 Wealth Report, people with assets of $5 million or more has increased by 9% since 2016 and is up 20% compared to 5 years ago. As for those with $50 million or more, 2017 saw a 10% jump on the year before. However, despite the number of super-wealthy only increasing, the prices of preowned aircrafts have continued to decrease, with the average asking price sitting at just under $9 million in 2017 compared to $13.5 million in 2014 – a drop of almost a third!
Oliver Stone, managing director of Colibiri Aircraft stated that he only: “expected this trend to continue and within ten years’ time, we would not be surprised if half our clients fell into this category.” Indeed, research from Corporate Jet Investors reveals that 17% of professionals believe that there will be a “dramatic increase” in people flying privately for the first time by 2021, whilst 67% believe that there will be a “slight” increase, with more people able to buy planes using cryptocurrencies.
It seems like the only way is up for private aircrafts! Are you thinking of purchasing a private aircraft and require a comprehensive aircraft insurance policy? We can help! We have an experienced team of aircraft experts who will source the right covers for you. Contact us on 01202 754900.