Article from BTNews 2 APRIL 2018
Private jet ownership will continue to decline
A new ‘Jet Traveler Report 2018’ compiled by Wealth-X, the intelligence and data research company, reveals the majority of ultra-high net worth individuals (UHNWIs) – those with a net worth over US$30m – are more likely to use on-demand charter services or membership programmes than to fly in their own private jet. writes Stephanie Taylor.
The report was carried out in conjunction with VistaJet, whose fleet is now over 70 medium to large Bombardier jets. Wealth-X director Winston Chesterfield explained that high operating costs and extreme value depreciation mean owning a jet is the reserve of only the richest UHNWIs.
Why? Those who are becoming UHNWIs in today’s market are likely to be younger – in 2017, VistaJet saw the average age of the private jet passenger drop from 40 to 38; it is expected to continue into 2018. Their age means they are also likely to be at the lower end of the UNHWI net worth scale, because they’ve had less time to accumulate their wealth.
It’s not only that – younger UHNWIs are also part of a broader cultural shift towards renting models such as Uber and Airbnb. The fact technology is making the booking process easier and faster, as well as offering access to better value empty-leg flights, for example, means the convenience gap between chartering and ownership is steadily closing.
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