Private Jet Prices are Falling Rapidly in China
The private jet prices are falling rapidly in China amid government crackdown which has discouraged domestic buyers, and turned existing private jet owners into sellers. Furthermore the global economic and political scenario including the plummet in global oil prices, strengthening of US dollar and political tensions in Brazil and Russia, has diminished the confidence of buyers.
In China, it started with the recent government crackdown on ownership of conspicuous asset, which drove businessperson and officials away from owning such assets. The existing owners of business jets in China are now trying to sell their private jets through brokers to other markets such as the US, which is currently the world’s largest business jet market.
Not many manufacturers are selling new business jet at the moment. In major markets such as China, many of the business jets for sale are the pre-owned aircraft. According to market data from Hong-Kong based Asian Sky Group, the total inventory of pre-owned business jets have reached $8.09 billion in February, 2016.
With rapid fall in private jet prices, many of the new buyers are looking for second-hand private jet. There’s currently no drought of options for private jets in the market. Actually, it’s the availability of too many choices and rapid fall in price that’s worrying the market.
In contrast, it’s not that the demand for business jet travel has fallen in China, as the business aviation traffic in Shanghai grew by 20% last year. It’s just the uncertainty and fear of government crackdown that is currently holding back China’s buyers from owning a private jet.