Private Jet Industry Outlook

The private jet industry demand collapse crisis has quickly followed the 2008 fuel price predicament. One would say that the global economy has not been very friendly to the charter jet industry over the last two to three years. Buoyed buy immense bonuses and an ever expanding economy it seemed that it was no longer a status symbol to drive a new car, buy the bigger house or even own a boat. Just about every Wall Street maverick was playing Maverick in real life with the purchase of a Private Jet.

However over the last three years, there has been a perfect storm brewing for the private jet industry. Fuel costs have skyrocketed; Leading up to 2008, fuel prices had raised drastically to over $100 a barrel, granted now fuel prices are back down in line with averages, it is hard to justify the price of chartering a private aircraft when you also have to pay for fuel. Just has airline fares have increased, charter jet prices have also increased.

The economy has tanked; People are saying gone are the days of Wall Street Bonuses. Now I don’t believe that but gone are the days of being able to justify the purchase of private plane or routinely chartering one. Because of this economy, many people realize now that everything doesn’t continue to increase – wages, bonuses, real estate and the stock market. It is not a guarantee that things always go up. Because of this reality check it is harder and harder to justify chartering a private jet.

Declining demand; Industry experts expect both business and leisure demand to continue to decline. After about a 1% decline in 2009, 2010 and 2011 do not look to much better. Many people are opting to travel by different modes of transportation, and increasingly take shorter distance trips.

Overall the industry outlook does not look promising for the private jet industry. However if companies can stay afloat during this tough time, I think they will ultimately come out ahead. The companies that manage to survive will be able to purchase private jets at a fraction of the previous cost thus creating more net income from their sales. Also with a major restructuring of the industry, the companies that come out alive will be the ones that take off (sorry about the pun) when the economy turns around. Thank you for reading charterhighflyingjets and check back for more information about the Privat Jet phenomenon.