The number of private jets available for purchase has plummeted sharply in the last year after wealthy individuals snapped up most of the world’s available planes due to the pandemic.
Data from private jet broker Colibri Aircraft shows that a mere 4.7 per cent of the world’s pre-owned jet fleet is for sale – this the lowest level since records began in the 1980s.
Around 1134 private jets are for sale globally, compared to approximately 1,839 in June 2020, a decline of over 38 per cent in a little over a year.
In addition, Colibri said that there had been a drop in the number of new jets being delivered of 20 per cent since 2019.
Colibri’s managing director Oliver Stone told City A.M. that a large number of new buyers had helped to crank up demand in the private jet market.
He also pointed to the difference in price between pre-used planes and new ones as another key reason for the shortage of “second-hand” jets.
“The recent large declines in supply of private jets has been led by the USA, which re-opened far quicker than other parts of the world”, Stone said.
“Key factors driving the dramatic drop in the supply of jets for sale was a strong desire to travel in an environment with far lower risk of Covid transmission – there are as many as 680 fewer person-to-person interactions when flying by private jet compared to commercial – and a significantly reduced airline service making airlines less convenient, which meant that more owners of private jets wanted to keep hold of their aircraft and a large number of first time buyers entered the market.”
He also said that the combination of surging asset prices, cheap debt due to government stimulus, and falling prices as a result of depreciation had encouraged people to buy.