"Make $10 Million by Flipping It Right After Delivery?"... The Market Drawing the World's Ultra-Rich in ‘This Market’

Up to four years to take delivery of a new private jet
Used aircraft command a premium
Some resell jets immediately after delivery to pocket profits amid supply shortages

As wealthy people around the world flock to the private jet market, used aircraft are increasingly selling for more than new ones.

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According to The Times of London on October 25 (local time), used jets that are only 1 to 2 years old have recently been selling for more than new ones in a growing number of cases.

Barbara Pansadoro, a partner at aviation finance law firm Addleshaw Goddard, said, "If you order a new private jet, delivery can take 3 to 4 years." She added, "Wealthy people who do not want to wait that long are looking for used private jets."

The shortage of private jets is seen as the result of lingering supply chain disruptions, production delays, and a shortage of skilled workers following the COVID-19 pandemic. Demand has grown further as newly wealthy individuals who made their fortunes in artificial intelligence (AI), IT, and cryptocurrency have entered the market.

"For them, a private jet is not a luxury but a necessity for business," Pansadoro said. "Demand for private jet ownership is driving up prices."

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Some wealthy buyers are making huge profits by "flipping" new private jets, reselling them at a premium shortly after taking delivery. Mike Francis, head of aviation finance at Citigroup, said, "If you could make $10 million (about 13.2 billion won) without much effort, why wouldn't you?"

Private jet prices vary widely depending on the model and specifications, but top-of-the-line models cost more than 50 million pounds (about 88.5 billion won). The Gulfstream G500, G650, and G800, which can fly long distances, are among the popular models.

U.S. tax incentives are also fueling the buying spree. Business jets that meet certain requirements can have their entire purchase cost treated as a first-year depreciation expense, reducing their tax burden.

The fractional ownership market, in which several people jointly own a private jet, is also growing rapidly. This allows them to use a private jet without having to manage pilot hiring, maintenance, and insurance themselves.

The United States is currently the world's largest market, with about two-thirds of all private jets. The United Kingdom also has more than 500 registered private jets, making it the world's sixth-largest market.

This content was produced with the assistance of AI translation services.