Why are more people taking to the skies with private aircraft?
According to the Knight Frank’s 2018 Wealth Report, the number of high-net worth individuals is on the rise worldwide. This, coupled with the fact that second-hand aircraft prices are at an all-time low, means that people have been more interested than ever to spread their wings and invest in a luxury private jet.
Mark Briffa, chief executive of Air Partner, stated that he believed high-net worth individuals were becoming more interested in “experiential” investments, ditching traditional assets such as “flash watches and fast cars” for “a superior experience” whilst travelling. It’s easy to see why – the airport process can certainly feel long and arduous; if given the opportunity, many would easily skip the queues and the experience of security to hop on their own private jet!
Mark Briffa went on to say that there was “a new breed of charter customers far younger than the typical jet owner, just as likely to be male or female, who are after a personalised service, something exclusive and unique”. This seems consolidated by data collected by a second-hand aircraft company, Colibiri Aircraft, which found that 1/5 of resold aircrafts were being sold to first-time buyers in 2017 – an increase of 50% when compared with 2014.
Not only is the increase in the number of super-wealthy considered a likely factor, but the plummeting prices of preowned aircraft is also making the prospect of a private jet more appealing than ever for potential buyers. What would have cost you on average $13.5 million in 2014 cost $9 million in 2017 – a price-drop of almost a third! This makes the opportunity to fly in the privacy and luxury of your own aircraft more affordable than ever, and 67% of professionals, according to a survey conducted by Corporate Jet Investors, believe the trend of first-time private flyers is only set to increase.