The Increase In Demand Of Private Jets

Private Jet Makers

In January 2008, Cessna Aircraft announced an order backlog of $12.6 billion, the largest in general aviation history. Last year, Cessna delivered 1,274 airplanes, including 387 business jets and 80 turboprops. The fleet of more than 5,100 Cessna Citation business jets—nine models seating four to eight passengers—is the largest in the world.

For the fourth consecutive year, the Canadian aerospace giant Bombardier, builder of the popular Learjet, Challenger, and Global corporate jets, saw an increase in orders and deliveries, resulting in a record year in 2007. Bombardier Business Aircraft delivered 232 jets last fiscal year, compared with 212 in the previous year.

Private jet transportation continues to grow at home and abroad and evidence of the expansion abounds. Hawker Beechcraft recently announced that BJETS of Mumbai, India and Singapore placed an order for 11 Hawker 900XP and nine 850XP business jets, worth more than $450 million. India’s Invision Projects is buying 18 Embraer Phenom 100 and two Phenom 300 executive jets. China is one of the most significant emerging markets for business jet aircraft

Based in Savannah, Ga., Gulfstream Aerospace announced in February that it received type certification from the General Administration of the Civil Aviation of China for five of its business jet models.

According to the European Business Aviation Association, Europe’s fleet of business aircraft will increase to approximately 4,000 units in 2011, up from 2,851 aircraft two years ago.

Private charter flight companies also benefit from an increase in fractional activity. Not only do companies on them, but part-owners of jets turn to them when another owner is taking his or her turn with the private plane.

Growth In Private Jets Demand

Private jets are now driving growth in general aviation. Investors are now closely eyeing this industry once populated by mom-and-pop operations. Global investor-backed chains are buying out independents, and some deep-pocketed start-ups are building their own FBOs -- or "fixed-base operators?. FBOs tend to boast luxurious facilities, but their main source of income is the same as any other - pumping fuel.

That means they need planes in the air. The Federal Aviation Administration expects a 9.8 percent average annual increase in fuel consumption by private jets through 2017.

Increasing disposable income in the long term will drive lifestyle changes. This combined with time poor business executives and innovative marketing techniques will help to generate future growth in the private jet rental business.