By Dan Kilkeary, SVP Sales Americas, Jetcraft
In the United States, Jetcraft has seen a tremendous uptick in demand for aircraft ownership driven by health considerations of the Covid-19 pandemic and a rise in global wealth in the financial markets. This trend is reinforced by record levels of capital raising and Initial Public Offering (IPO) activity, and buoyed by supportive public market valuations. Here are our key takeaways from the private jet boom.
Business is coming back
Business aviation users are demonstrating a pent-up desire to travel to locations that are currently being under-served by airlines. The pandemic has led to a reduction in flight routes and several US carriers have seen mass flight cancelations caused by staff shortages. Private flying in comparison regained momentum much quicker and purchasing a private jet is enabling owners to mitigate the limitations of commercial travel, reaching their destinations faster and via a more direct route.
New buyers are being attracted to private aviation to control their environment and reduce their touchpoints and exposure to the virus. We’re seeing global business return, with executives expressing a strong desire to fly internationally for face-to-face meetings with clients to reconnect and reaffirm business relationships. This trend has been particularly strong in North America, demonstrating an eagerness to return to normality, facilitated by private aviation.
The changing face of the first-time buyer
One of the most interesting trends is the evolving profile of the first-time buyer. Typically, new entrants to the market now are savvier than ever before, having previously experienced business aviation via charter, jet cards or fractional solutions.
This trend bodes well for the future health of our industry, with increased accessibility and ease of entry sowing the seed for prospective aircraft owners and demonstrating the value of flying privately from an early stage. The journey to aircraft ownership is also accelerating as buyers are becoming more confident in their decision making and their business jet needs.
Furthermore, more first-time buyers are considering purchasing a Large Jet, with long- to ultra-long range, from the outset, rather than starting smaller and increasing in size as their mission profiles change. This trend is indicative of the current demand to kickstart global travel and the growing sophistication of aircraft buyers who recognize the benefits of aircraft that can fly further, without multiple stops enroute. Moreover, the predicted increase in the wealth-rate among High Net Worth Individuals (HNWIs), provides greater incentive for current business aviation users to move towards owning their own jet.
At Jetcraft, we support those taking the first steps into aircraft ownership by providing detailed guidance on which aircraft are most suitable for a buyers’ needs and mission.
Replicating US recovery
For decades, the US has led the way in business aviation, having been adopted here first. This past year, record levels of air charter use in North America have demonstrated how much corporate aviation is a solution for worldwide travel. The demand has been energizing and we foresee the US recovery model being replicated across markets in Asia, Europe and beyond.
I’ve often been asked if the pandemic is leading to more people entrenching their businesses at home and becoming more domestic in their focus. The reality is in fact the opposite. Our clients are telling us that the world is coming back to life and that they will be ready to seize the day thanks to their business jets.
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