While recent regulation changes in China have aviation experts drooling over the potential for a major upturn in the Asian jet market soon, private jet makers are still counting on the U.S. for new orders for the time being.
And with good reason — the U.S. is still home to the world’s largest population of high net worth individuals. Ultra high net worth Asian owners account for only 6% of private jet owners globally, despite the region having 22% of the world’s ultra high net worth individuals. So, the U.S. remains the world’s largest market for private aviation. Around two-thirds of the world’s 20,000 business jets are based in the U.S., and American buyers are likely to continue to be the primary source of demand.
The gap between the markets can be explained in part by one of the key differences between Eastern and Western thinking in regards to private jets: In the U.S., having a private jet is widely viewed as a useful business tool that gives executives needed flexibility. In Asia, they are seen as simply a symbol of wealth.
Still, the Asian market shouldn’t be discounted, either. While it’s not at U.S. levels yet, China is the second largest economy in the world and their business aviation market will undoubtedly be influential in the coming years and beyond.
Some predictions from industry experts include:
- 50% growth in global demand for private business jets in the next decade
- 20% growth in the Asian market for private business jets
- New business jet deliveries totaling $250 billion (9,250 new aircraft) over the next decade
Furthermore, the industry predicts a phenomenal year as demand gets a jump start due to the global economic recovery. The most important driver fueling jet orders and inquiries regarding existing jet resales is simply how comfortable business executives are feeling about the growth of their own business and the stability of the economy. This means that people who have been putting off buying a jet during the leaner years are now starting to figure out their order.