The decision to buy a private jet is a big one. 2018 has been a great year for consumers, and 2019 is shaping up to be a good year for luxury buyers as well. It is an excellent time to invest in a private jet. Let us explain why that is.
A Buyer’s Market
According to the United Nations’ World Economic Situation and Prospects Report 2018, global economic growth reached 3% in 2017 and is expected to remain steady for 2018 and 2019. What does this mean for private jet shoppers? The low but steady economic growth translates into a slow market for jet purchases. The market currently has more product than demand. The steady economy ensures that buyers will maintain the income needed for private jet expenses, while the slow growth of the market is keeping prices down.
Interestingly, even when the economy slows down, jet manufacturers tend to maintain their production pace. Because jet development is such a long process, manufacturers are not inclined to halt production as an immediate response to market changes. As a result, there are more new planes on the market than the current demand, which means prices are being reduced to move inventory. The conditions are optimal for buyers right now when it comes to prices and the ability to negotiate a deal.
In the United States, the tax reform bill passed in 2017 was a boon to private jet owners. Under the new plan, companies that purchase private jets can now deduct 100% bonus depreciation for the aircraft. After the private jet is purchased, the owner can deduct the full depreciation of the aircraft immediately. This translates into massive savings and will help soften the initial blow of a private jet purchase.
The International Air Transport Association (IATA) maintains a jet fuel price monitor. During the month of October 2018, jet fuel prices dropped each week. While prices have been rising since 2016, the overall trend is much lower fuel prices than were seen earlier in the decade. Fuel prices are significantly lower than they were just five or six years ago, and the recent drop in prices is encouraging. The relative stability of gas prices is encouraging for prospective private jet shoppers.
Flexibility and Privacy
The biggest reason to purchase a jet, however, has nothing to do with the financial considerations mentioned above. The most important factor to consider when deciding whether to purchase a private jet is peace of mind. The luxury of flexibility and privacy while traveling is well worth the expense of a private plane.
Flying on your own jet affords you the ultimate in privacy and confidentiality. Conduct important phone calls and work on new projects without the worry of others listening in. You can practically take your office in the sky when you have a private jet.
Owning your own plane lets you customize it to fit your specific needs. If you travel with pets, you can design a space for them. If you have special dietary requirements or food allergies, you can equip your private jet with an upscale kitchen and bring a chef on board to prepare meals for you. The options for customization are almost endless.
Imagine the flexibility you can enjoy with a private jet. No more waiting for planes or bending to other people’s schedules. Fly to remote destinations, or invest in a second home that is off the grid, and arrive there easily with your own plane. That is freedom. To see how some business owners and celebrities make the most of their private jets, take a look inside a private jet.