Private Jets As Investments

Everyone seems to be getting their feet back under them in this rebounding economy.  The aviation business is seeing some light at the end of the tunnel and it seems that part of the reason is how those with the means are investing their money. Katya Kazakina of Bloomberg reported yesterday:

As millionaires’ assets rebounded in 2009, they put more money in tangibles such as art, jets and gems, according to a report released this week by Capgemini SA and Merrill Lynch & Co.

It seems that wealth management firms were very hard hit as the report indicates that 30 percent of the millionaires in the world withdrew their funds in the wealth management sector as the Standard & Poor’s fund dropped like a rock.  It seems that index is beginning to rebound however, from a 38% drop to a 22% gain over the last year.

Of note also was the reports listing of 6 major areas of investment by the world’s most wealthy:

Six “passion” investments listed in the “World Wealth Report” typically account for about a third of a millionaire’s total holdings, Van der Linde said: luxury collectibles such as yachts, jets and high-end cars; art; jewelry, gems and watches; other collectibles such as wine and coins; sports investments, including teams and race horses; and a “miscellaneous” category comprising club memberships, musical instruments and other items.

It seems that private jets or business jets are a good place to put the money that would normally be invested in a wealth management company or other vehicles.  Americans and Japanese millionaires appear to be the best market for the corporate or private jet whereas other countries are more likely to add art or or other luxury items.

Also of note was the fact that in this tight economy and when things are tough it seems to be tougher for nonprofits and other philanthropic companies.  When there is not much of the pie they seem to be the hardest hit.

From our perspective corporate jets or private aircraft have always been a good investment for those that can afford to have the luxury of owning their own jet.  If we can help you with your investments, please contact us and see what we have in our inventory.

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