Keeping private jets on hand is a costly business that ordinary people can’t indulge in. Owning or using private jets comes with an expensive cost that’s why wealthy people are the ones who often can afford private aviation. The private jet industry is booming and becoming more stable because rich people support and keep the industry this way.
The demand for private jets is on the rise to the extent that companies can no longer produce these jets quickly enough to meet the unceasing needs of buyers. Even used business jets are now beginning to vanish in the market. Some say that the pandemic converted many travelers to exclusive flying, but the wealth bloom actually triggers this.
According to Morgan Stanley, take-offs and landings of private jets in the US are up to around 40% year on year. Public listings by US companies hit records high in 2021. Data from Jefferies Equity Research shows that IPO activities increase, and the volume of business jet deliveries also rises. Read further to learn more about new customers, sustainability issues, and the wealthy’s role in the booming private jet industry.
A Glimpse of the Private Jet Industry
The private jet industry is booming, and an increasing number of individuals prefer flying on private jets to the typical commercial flights. Traveling on private jets has been creating a big difference in the ways people travel, and the demands for private flying mostly come from wealthy people. These people are undoubtedly keeping the private jet industry stable.
The market for exclusive travel
The marker draws in individual buyers searching for more exclusive and safer travel, ensuring more excellent dependability than commercial flying, hindered by COVID-19 restrictions. Despite the increase in high-end industry demands and the rising inflation, prices of used and new jets are getting a maximum level in years.
The inventory of secondhand jets-the ratio of aircraft for sale versus the quantity of the same plane existing worldwide shows records low. The proportion is below or around 3% for most jet manufacturers, including Gulfstream, Cessna, Bombardier, Dassault, and Embraer.
Private flight activities don’t just increase in the US. The record shows that it’s also 20% higher in Europe. Things seem tight in secondhand or used business jets, and there have been the lowest inventories noticed in years, yet prices are higher at around 20 to 30%. It’s undoubtedly hot markets these days.
Unveiling reasons wealthy people opt for private jets
Some people wonder why rich people use private jets when commercial-class air travel options are available. It has been found out that wealthy people opt to travel with private jest because of its value. Because wealthy clients often fly privately, the private jet industry is now experiencing increasing consumer demands.
There has also been an influx of newest entrants, usually wealthy families and individuals who opt to upgrade from first-class to private jet flights. These rich people fly on private jets to avoid the hassle of commercial aviation, especially with the COVID-19 travel restrictions. Private jets give them more comfort, privacy and are often more luxurious. They also have control over their entire private trip.
Learn More About New Customers and Sustainability Issues
New customers or novice entrants and sustainability issues are also crucial components of the private jet industry. As you read this further, you’ll learn how first-time entrants contribute to fueling private aviation growth.
The new customers or novice entrants
New customers or entrants to private jet markets make up more than 3% of buyers. These findings were based on the latest report of Goldman Sachs. But for Stephen Friedrich, Embraer Chief Commercial Officer, the thing that stands out is the consumer base’s growth.
The addressable business jets market is expanding now, and the pie has become more extensive than before. The results originate from the prolonged wealth creation of more than 12% and traditional fortune companies and larger private firms.
Private jet companies also report an increase in new members
Even private jet companies, including VistaJet, reported a 29% increase in new members over the years. There has also been 71% of new requests from passengers who don’t use private aviation regularly before. Over half of its new private aviation users, that’s around 53%, will continue flying privately on a post-pandemic and regular basis.
With the growing number of new members usually coming from the wealthy group using private aviation, the industry can expect increased demands. But aside from this, there will also be a surge in revenue.
Sustainability issues surrounding private jets
Private jets somehow draw serious condemnations from many environmental activists. These activists say that 1% of air travelers are responsible for the 50% carbon emissions of the industry. A recent report shared by the European campaign group Transport & Environment unveils that private jets are 5 to 14 times more causing pollution than commercial planes.
Industry executives reveal that sustainability is becoming a top priority in the private jet business. Embraer starts pledging to achieve net-zero carbon emissions by 2040. VistaJet business jet provider also aims the same by the year 2050. Carriers are beginning to use more sustainable jet fuels or SAF generating 80% less carbon dioxide emissions. However, these fuels are hard to obtain and quite expensive.
Many would agree that SAF is the next big step for business aviation sustainability. Private jet charters such as NetJets celebrate a year of using sustainable fuel. Their jets flew over 2 million miles using cleaner and more sustainable fuel. Using SAF is not just the right thing to do but the best thing for your company or business.
Private jets have become a highly preferred option among travelers and have become a status symbol as well. The wealthy, famous, or people with sufficient money to afford private flying have essential roles in keeping the private jet industry stable.
Wealthy people who can use or even own a private jet can actually be part of the solution in making the private jet industry achieve maximum revenue and accelerated innovation, and an unmatched flying experience for customers.