Private Air New York Magazine
Issue link: https://privateair.uberflip.com/i/1436865
www.privateairny.com Private Air | Winter 2021/2022 36 AVIATION A ccording to a forecast recently released by business jet acquisition and sales firm Jetcraft, some 12,261 preowned business jet sales transactions worth $57.2 billion are expected over the next five years. e company expects preowned aircraft transaction volume and value to maintain their current "healthy" growth rates, reaching 2,647 transactions worth $12.4 billion annually by 2025. Midsize and large-cabin jets are predicted to lead overall volume and value growth. "Since the pandemic, the true benefits of business aviation have been realized," said Jetcraft owner and chairman Jahid Fazal-Karim. "e combination of limited commercial airline services, plus expanding offerings within business aviation, presents the sector with a real opportunity to further broaden its customer base and secure long-term prosperity." He added that this growing buyer pool combined with rising manufacturer backlogs and wait times "means many will be compelled to turn to preowned aircraft to meet their needs." However, the Jetcraft forecast calls for market values to remain rational. e current market strength is predicted to last another 12 months before transaction values and depreciation eventually return to normal by 2025. Meanwhile, the forecast calls for the number of new business jet owners in Asia-Pacific and Europe to rise, reaching closer to U.S. ownership levels. Fazal-Karim noted that regional drivers, such as wealth levels and flying hours, represent the main reasons behind ownership in North America, Asia-Pacific, and Europe. Post-pandemic dynamics and opportunities from an increasing high- net-worth individual population will be critical factors in growing transaction volume, according to Jetcraft. "With the projected growth in wealth converging with increased use in business jet solutions, we expect to see the road to ownership accelerate among many users," Fazal-Karim concluded. By: Chad Trautvetter OUTLOOK Jetcraft predicts $57 billion in pre-owned business jet sales in five years.