Private jet market booms but runway limited for flights

Private jet market booms but runway limited for flights

Private jet demand has boomed during the pandemic as the wealthy took control of their travel, yet the flight to luxury could have limited runway as some buyers spend beyond their means and the sector presents a prime target for climate critics.

Bidding wars for second-hand planes and premiums for early delivery of new ones dominated chatter at the National Business Aviation Association’s (NBAA) show in Las Vegas last week.

It’s a boon for publicly traded corporate planemakers who are increasingly selling aircraft without the discounts that had become pervasive after the industry fell from favour in the 2008-2009 financial crisis.

General Dynamics Corp’s Gulfstream Aerospace, Bombardier, Textron and Dassault Aviation are leaders by value of deliveries, which supplier Honeywell values at $238bn over the next decade.

“I’m hearing from people every day who are interested in getting into private aircraft,” said Stephen Hofer, president of Aerlex Law Group, which does aircraft transactions.

But the influx of new entrants, often wealthy individuals and families who upgraded their travel from first-class airline tickets during the pandemic, brings some new risks.

One veteran broker described a new buyer who had purchased a plane at prices he could only afford by leasing the aircraft for part of