Aviation

Used private jets soar as Gulf aircraft deliveries stall

December 13, 2024, 6:30 PM

ACJ TwoTwenty cabin interior — Faced with a potential two-year delay in the delivery of private jets such as the Airbus ACJ TwoTwenty, affluent travellers are turning to pre-owned aircraft for their luxury travel

Demand for jets from mega-rich
Gulf clients face 2-year wait
Increase in pre-owned sales

The Gulf’s second-hand private jet market has enjoyed a surge in popularity due to an influx of wealthy residents and delays in the delivery of new aircraft.

“It is hard for [buyers] to get access to assets,” Vincent Rolland, director of JetNet IQ, a US-based market analysis and business aviation consultancy company, told AGBI.

Clients are having to wait at least two years for a new plane, and, for some models, the waiting time can be stretched up to seven years. “If you’re a CEO or an entrepreneur, would you like to wait two years for something? Hell no!” said Rolland. “That’s causing some constraint on sales right now.”

High global demand and supply chain issues are impacting new aircraft deliveries. European manufacturer Airbus estimates that over 40 percent of business planes in the region are at least 15 years old and will need to be replaced over the next five to 10 years.

“Both Airbus and Boeing delivered much fewer aircraft during Covid-19 and currently the market is catching up,” Chadi Saade, president of Airbus Corporate Jets (ACJ), said.

“The demand for 330s and 350s is very strong, so, typically, the waiting time for these two types of aircraft can be as long as the end of this decade.”

Due to the high level of comfort and luxury, large and ultra-long-range jets are in high demand and constitute over 25 percent of the fleet in the region. Wide-body aircraft are also the preferred choice of regional governments and corporations.

According to a study from Swiss private wealth bank UBS, the Middle East and Africa has recorded the greatest influx of billionaires outside of the US this year. It had 25 percent growth in the mega-rich in 2024, marginally behind the US at 26.9 percent.

With a lack of new jets on offer from manufacturers, wealthy residents arriving in the region are having to look to the second-hand market.

“If you bought a plane even a few years ago, it’s worth more than you paid for it,” said Rolland. “Worldwide, the volume of pre-owned sales is four times that of new ones.”

Eve Laurier, Bombardier’s communications, marketing and public affairs vice-president, said that there has also been a massive resurgence of fleet operators like Netjet, FlexJet and VistaJet catering to those who cannot buy an aircraft but still want to fly by private jet.

“If you’re one of the aircraft management companies, the business is pouring in,” said Rolland.

Despite the growth, business aviation is still a niche sector: it accounted for only 13 percent of all departures worldwide during the last 11 months according to JetNet IQ.

However, it registered a 30 percent increase in departures from the Middle East compared with pre-pandemic levels, according to ACJ.

Simon D’Oyly, Abu Dhabi-based Victor Aviation general manager, envisaged the rise of private aviation in the UAE. “When I came here in 2004, there were probably less than 10 aircraft based here.” This number has now multiplied by nearly 20.

According to the JetNet IQ industry report, there are 24,400 business jets worldwide. Of these, 420 are based in the Middle East and North Africa and nearly 200 are in the UAE.

However, the influx of more wealthy residents to the region is likely to see this number increase.