Younger buyers are playing a significant and increasing role in the expansion of the private aviation industry, according to new data from Jetcraft, the global leader in pre-owned business aircraft sales, acquisitions and trades.
Ever Forward, Jetcraft’s Five-Year Pre-Owned Business Jet Market Forecast reveals that the share of Jetcraft clients under 45 has risen by 20 per cent in the last five years.
Further, these buyers are driving a trend towards larger aircraft purchases, with their average transaction price hitting $25m, some 31 per cent higher than their over 45 counterparts.
Nearly a quarter (24 per cent) of Jetcraft’s pre-owned jet buyers in Europe are younger than 45, with this figure rising to 38 per cent in the Middle East and Africa.
Jahid Fazal-Karim, owner and chairman of the board at Jetcraft, said: “We are now entering a post-pandemic business cycle from a new, higher starting point, with a predicted steady upward trajectory fuelled by more and younger first-time buyers entering the market, alongside strong demand for larger jets and a growing UHNWI population.”
The Jetcraft study has also identified international growth areas for the sector, with Asia-Pacific’s UHNWI population set to increase by 33 per cent over the next five years, suggesting significant potential for pre-owned large jet transactions in the region.
“Our data shows the profile of a typical pre-owned jet buyer has shifted internationally in recent years. This younger buyer persona offers real lifetime value to our industry, while the predicted growth of the UHNWI population also underlines the potential for the future of the sector,” added Chad Anderson, chief executive officer at Jetcraft.
Ever Forward predicts a much more rational market over the next five years when compared with the 2004-2008 boom, with average purchase prices returning to pre-pandemic levels.
Last year was a record year for business aviation, with an annual total pre-owned transaction value of $14.5bn, a near 40 per cent increase on 2020, principally driven by large and midsize jet purchases.
“After stabilising in the wake of a post-pandemic surge, pre-owned transactions are expected to maintain their new higher base and growth rates, reaching 10,921 transactions valued at $66.6B over the next five years,” concludes Anderson.
