Rich jet-setters forced to abandon their jets are setting the second-hand plane market ablaze and apparently people are actually buying their castoffs. We’re not really sure who can afford a second-hand plane if the jet’s original owners no longer can.
Wealth Bulletin: The value of second-hand private jets available to purchase has doubled to $3.3bn from $1.6bn last year, according to Jet Republic, a newly launched company concentrating on fractional ownership of aircraft.
Jet Republic said sales of second-hand jets are up 90% on last year with as many as 211 on the market in Europe.
Jonathan Breeze, chief executive of Jet Republic said: “The ultra high net worth market has been affected by the current global financial crisis but many of those people with private jets are looking to sell them and switch to a fractional ownership model or jet card scheme.”
He said that the average asking price for a used jet is currently just under $16m; and he estimates the total annual cost of running a jet for 200 hours a year is $3.5m per year.
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