Demand Jumps for Small to Midsized Private Jets

The turnaround in the U.S. private jet market has finally reached the small- to medium-sized jet sector. A period of frugality, brought on by the U.S.’s recent economic struggles as well as the public’s negative perception of corporate jet usage, may have finally come to an end.

Smaller-jet shipments are up

As the home of approximately two-thirds of the world’s fleet of light to midsized jets, the U.S.’s continuing economic recovery is spurring jet sales. The General Aviation Manufacturers Association (GAMA) reports that midsize and light jet shipments increased by 12% in 2014 over the previous year. In the same timeframe, the demand for light and superlight jets increased a significant 19%.

Compare these facts with the reduction in large-cabin, long-range jet shipments, which declined more than 10% in 2014, according to GAMA. The numbers indicate that the market for smaller used jets is primed and ready.

 Fuel prices, new models also drive demand

Other factors are contributing to the increase in small to midsized jet sales. They include lower fuel prices and the release of a number of new and upgraded midsize aircraft models: among them the Embraer Legacy 500, Bombardier Challenger 350, and Cessna Citation X+.

In addition to these, the much-anticipated HondaJet, a very light jet (VLJ) aircraft, should finally be available by Q2 of this year.

As entrepreneurs and business owners consider how to maintain business growth in a flourishing economy, they’re looking more favorably on business jets as a corporate investment. Many of those same business owners also have big cash reserves and are more willing to open their checkbooks now than they were several years ago. With the economic outlook strong and business leaders optimistic, the bizjet market outlook is promising for 2015.