No “Sell-Off” for Business Jet Owners

Looking back to the most recent economic crisis prior to COVID-19, we find the 2008 recession. It is estimated that in 2008, one in five airplanes were on the market to be sold because of the economic environment.

With 2020’s economic crisis it is proving to be far different, at least so far. At this point, private jet owners and business jet fleets are holding on to their aircraft and waiting for restrictive travel orders to be lifted. According to aircraft fleet statistic provider AMSTAT, the percentage of the world fleet that is currently for sale has essentially remained flat compared to pre-COVID numbers.

There are a number of theories around the reasoning behind this, and one we believe to be credible is the cause of the economic stress is directly related to our proximity to other people, which is avoided by traveling, or travelling with few others rather than trudging through major airports surrounded by so many unknown passengers. Privately owned aircraft are typically used for charter or personal travel, therefore it would make sense that while owners and operators may be flat or down, they foresee an upswing in the near future.

If you have questions about your aviation insurance or the market’s impact on your business, please don’t hesitate to give us a call and we will happily share our insight based on decades of aviation business experience.