Private Jet Sales Fall As More People Choose To Charter
Owning your own private jet has long been a symbol of success for the wealthy elite. In reality, when it comes down to the actual facts and figures of plane ownership, it can be an expensive endeavor which isn’t cost effective. It’s no surprise that increasing numbers of people are opting to move away from jet ownership to make use of private charter companies to fulfill their international duties.
One of the leading providers of market data for the aviation industry, Jetnet, recently released the sales figures for the first quarter of 2019. The data shows a significant decrease in the number of private aircraft being purchased, with a 25 percent drop in sales activity in Q1 of 2019 when compared to Q1 of 2018, totaling 620 fewer transactions.
During this same period, sales of business jets also fell by 19.9 percent, with 127 fewer jets exchanging hands. The sharp decrease in the number of aircraft sold seems to be a solid indicator pointing towards the direction the market is heading. Put simply, in 2019 there is no need to buy a jet, it is far more cost effective to charter a private aircraft as and when needed, even if you’re clocking over 250 hours of flight time per year.
The main issues with aircraft ownership are the large initial cash outlay and the ongoing costs. Purchasing a new aircraft can be expensive. Prices tend to range from around $7.4m up to $100m for a top-of-the-line Boeing and running costs for the more expensive models can be in the region of $30m a year.
It’s not just the initial expenditure of purchasing a plane, owners have a never-ending list of bills which include regular maintenance, insurances, crew salaries, and storage. Also, as an asset, aircraft tend to depreciate by an average of 50-60% in their first three years.
The opportunity to charter a variety of business jets allows travelers to fly further, for less money, with a higher level of service, and in better quality aircraft. With all the financial hassles associated with private jet ownership, and with a broad array of aircraft available to charter, it makes sense to see the market increasingly tend towards rental, with ownership reserved for those who have excessive international schedules.
EliteLYFE acts as a gateway to the world of business jets and private aviation. If it has a runway, they can land you there. Those who wish to know more about private jet charter are invited to contact EliteLYFE at their convenience.
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