Sales of private jets see a boom weakened


Sales of private jets are no longer experiencing the boom that was recorded during the peak of the corona pandemic. This has been noted by several aviation experts. They believe the decline may be due to a combination of factors. At the same time, the phenomenon on the market also creates a number of new opportunities.

Why is this important?

Experts point to several elements that explain the slowdown in the private jet market. On the one hand, used devices are less likely to find a new owner. In addition, private planes are flown less often than before. Demand for new aircraft has also begun to decline. All of this points to possible cracks in a market that has so far experienced a strong economic boom.

Economic pressure: According to the experts, some private jet owners are experiencing problems paying off their loans.

  • “A number of owners of the units have come under greater financial pressure due to recent economic developments,” the experts point out.
    • “This includes customers from Eastern Europe and Latin America, where economic growth is likely to slow.”
    • “So far, defaulters remain rare, but all these signals point to potential problems for the sector.”
  • “During the corona pandemic, rising prosperity, access to cheap credit and the tendency of affluent travelers to avoid crowds created a high demand for private jets,” the experts note.
    • “This often led to overcrowded order books at the aircraft manufacturers, which meant that many customers had to expect long waiting times. But that situation has changed now.”
    • “Rising interest rates have also pushed up customers’ borrowing costs, while increasing indications of a looming recession have prompted some interested parties to delay any purchases.”

Increasing interest in the used market: However, some clients’ financial difficulties may provide some opportunities for other applicants.

  • The experts point out that while the industry still enjoys strong demand, some interested parties appear to be looking for aircraft that have previously been ordered but where the buyer appears to be having difficulty financing the deal.
    • “This allows the candidates to avoid the long waiting times for the purchase of a new aircraft and to acquire an aircraft often at a more favorable price,” argue the analysts.
  • However, it must also be noted that the sale of used aircraft is slowing down compared to some time ago.
    • “More than a year ago, such an aircraft would have been sold in hours or days,” said Brian Proctor, chief executive of aircraft broker Mente Group. “Now we have to take into account at least a couple of weeks.”
    • Analyst Brian Foley adds that second-hand market supply rose more than 40 percent during the second half of last year.
    • It is also expected that there will be fewer flights with private jets this year than during the peak period of the corona crisis. However, there would still be greater activity than four years ago, before the outbreak of the pandemic.

Climate criminals: Finally, the experts also point to the climate problem, which creates increasing resistance to activities that cause the emission of greenhouse gases.

  • “A number of countries, including Belgium, have plans to tax corporate jets more heavily,” they claim.
  • “Furthermore, corporate jet owners, often celebrities, are crucified as climate criminals by a section of the public.”
  • “All these negative signals would ultimately cause potential customers to decide not to buy a private jet.”

There will be no unrest right now: The manufacturers of the private planes say they have not noticed any problems so far.

  • After all, they point to crowded order books for many billions of dollars, while customers can see continued demand. In their own words, this will allow them to absorb a possible recession.
  • “When customers return to a previous purchase of an aircraft for financial reasons, it is still possible to find another candidate for the aircraft within a reasonable time,” many manufacturers also state.
  • Analyst Richard Aboulafia warns that the sector must avoid a crash like the one that happened during the financial crisis fifteen years ago.
    • “In such a situation, which is unlikely, the crowded order books create a false sense of security,” he argues.

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