Page 48 - World Airnews Magazine March 2021

NEWS DIGITAL

TWICE AS MANY FIRST-TIME

BUYERS

ABOVE: The Hawker 850 XP is
one of the mid-sized private jet
models that is most in demand by
first-time buyers and for charters.
"One way to offset the cost and
upkeep of private jet ownership
is placing it out for charter. A
mid-sized plane, carrying six
passengers, is the type of private
jet that is most often chartered
and can be bought and sold."
Cessna Citation Excel

for private jets since most manufacturers are sold out for the next
three years.
The number of first-time prospective buyers of private jets Jennings’ advice for first-time buyers can be summed up as
in the fourth quarter of 2020 was double that of the past several follows: buy a mid-sized aircraft that is most desirable for charters
years. and can be easily bought and sold. Interestingly, most first-time
Driven by continuing concerns about Covid-19, the resulting cuts buyers resell their jet aircraft within two or three years of pur-
in commercial air service, and the possible end of Trump-era tax chase, usually in order to upgrade.
benefits that favour private jet ownership, the number of business-
es and wealthy individuals looking to buy a private jet for the first BEST PRIVATE JET AIRCRAFT FOR FIRST-TIME BUYERS
time doubled, compared to recent years, according to private jet
broker - The Private Jet Company (TPJC). One of the ways to offset the cost and upkeep of private jet
“The fourth quarter is when half of private jet transactions occur ownership is placing it out for charter.
due to tax planning,” said Daniel Jennings, CEO of the Private Jet A mid-sized plane, carrying six passengers, is the type of private
Company. jet that is most often chartered. Examples include the Cessna
“With health concerns due to the continuing pandemic and the Citation Excel and XLS, Embraer Phenom 300, Lear jet 60, Hawker
possible end of several tax incentives, we saw double the number 800 XP and 850 XP.
of first-time buyers and 50% more repeat buyers in the fourth Pre-owned aircraft in good condition range in price from (US) $1
quarter of 2020 compared to the past several years. million to (US) $6 million.
“High-net-worth individuals with multiple homes continue to These mid-sized aircraft are used for non-stop flights on the
contact us because they’re no longer willing to fly in first class on most popular domestic US routes: such as New York-to-Florida;
commercial carriers due to Covid concerns and the deep cuts in Texas-to-Colorado; San Francisco-to-Los Angeles; San Francisco-
the frequency of commercial service. They want to know ‘How can to-Las Vegas; California-to-Colorado. They are not suitable for
I make buying a jet work?”, said Jennings. cross-country trips due to refuelling stops.
“Mid-size private jets are a very liquid market. They are easy to
ADVICE TO FIRST-TIME PRIVATE JET BUYERS buy and sell - due to high demand for both purchase and charter of
New jet deliveries cannot meet the current short-term demand this type of aircraft,” he said. Q

World Airnews | March Extra 2021
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