Name: The rich are getting richer — and they're fueling a private jet boom
Uploaded: 2021-11-26T18:05:21.000Z
Duration: 7 min 44 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Adverbs of degree

private jet demand is booming so much so that companies can't make them fast enough.

Even used jets are disappearing from the market.

Yeah we're here at the Dubai airshow where some of the newest and most advanced aircraft are on display for customers and governments from around the world.

This executive jet has a flight time of 16 hours.

You can fly from Dubai to Hawaii without having to refuel.

The pandemic has converted a lot of travelers to private, flying many for the first time.

Yeah but it's not just that there's been a wealth boom especially among the already rich as more companies go public and the stock market hits record highs.

This chart tracks the number of business jet deliveries since the start of 2019.

The number of private jets sold spiked along with it analysts tell me a lot of newly listed companies are buying their first company jets but the markets attracting individuals to whether it be an executive startup founder or a lucky crypto investor with their 1st 100 million.

Looking for a new toy with a high price tag.

In the US business jet takeoffs and landings are up 40% year on year and are at their highest point since before the 2008 financial crisis partly driven by the pandemic.

As big companies expanded private jet privileges for their top executives.

The demand for private air travel has grown so much along with the global supply chain crunch that some customers are turning to the used debt market.

Even then the supply of secondhand private jets is near record lows too.

If you look at today compared to 2019, the market has almost exploded means 16% higher in the US25% higher in Europe.

I mean things are really tightened used business jet aircraft inventories, I mean the lowest we've seen in years and yet prices are 20-30% higher.

So it's, it's a really hot market right now.

The price tag of about 24 a half million dollars subject to options.

Yeah, we've got a mini espresso machine and here where you can keep the crystal First time entrance to the private jet market now make up over 30% of buyers for Brazilian plane maker embraer new buyers account for 34% of deliveries year to date.

I asked embraer's chief commercial officer Steven Frederick What stood out to him in the market.

The addressable market right now for business jets has expanded the pie has gotten bigger and the result is from continued wealth creation of over 12% when you take a look at the billionaires through the world, but also from What was traditionally been Fortune 100 and large private companies, people are looking at ways to become more productive, more certain in the missions that they have to perform and that's the key right now, is that private aviation business aviation really is a productivity tool And obviously with the longer flights, do you want to take a nap?

Next up is the Bombardier Global 7500 Vista Jets Newest Business Jet vista jet is an on demand charter flight service for customers who want to fly private but can pay by flight hours rather than buying their own jet.

If you want to take a trip in this plane, it'll cost you roughly $20,000 per hour and you have to buy at least 100 hours per year.

But if you want your own Global 7500 that'll cost you between 70 million and $100 million.

Well demand in this industry has been Really off the scale.

I've been in the industry for 20 years now, I've never seen anything like it and then you have just seen a huge surge of new customers come into the industry and stain and if you want some space from the kids some privacy soundproof doors.

Now we have a classic supply demand curve.

This is not enough supply and demand has been skyrocketing.

So prices are going up, availability is very, very tight.

The increase in wealth since the pandemic began has been visibly unequal with us billionaires getting approximately 62% richer, gaining more than $1.8 trillion 2020 rising inflation also means prices on just about everything are going up from basic goods to things like airplane parts.

Private jets were a common sight at the recent cop 26 Climate Summit getting heat from environmental activists because private jets carry less people and typically have shorter ranges compared to commercial flights, they have a disproportionate impact on the environment.

A recent report found that private jets are 5-14 times more polluting per passenger than commercial planes.

Say you want something a little more versatile than your standard executive jet.

X pilots call this the suv of private planes, it can take off from and land on dirt, grass and even water.

Because it's a turbo prop, it actually has greater fuel efficiency for the distances that it travels.

More carriers are starting to use sustainable aviation fuel or Saff, which generates 80% less carbon emissions than fossil fuels.

But there are challenges to this to those are expensive and hard to get, although right now there's over 20 locations globally where you can get sustainable aviation fuels and you look at companies like netjets And last year they did 2.5 million miles on the Sustainable Aviation Fuel.

So I see that as being kind of the next step in sustainability for business aviation followed by new programs, new engines and the continuation of technologies to drive sustainability Around 14 billion liters of staff are in forward purchase agreements and 45 airlines now have experience using them.

100 million liters of staff will be produced in 2021 according to the a to Embraer says it's using sap among other technologies to meet its goal of being carbon neutral by 2040.

What we found is we knew it was good for business to make sure that we had a sustainable product.

It's not just the right thing to do, it's also good for business, it's the right thing to do for the company.

So we'll jet manufacturers ramp up production to meet the demand.

Industry forecasts say no in part because of supply chain issues, but also because of the uncertainty about the future of the market.

The shortage also helps boost their prices.

Industry analysts tell me they don't see demand dying down anytime soon.

Even once the pandemic is over, meaning if you think this past time is expensive now, you probably haven't seen anything yet.