A few years ago, no one would have thought that purchasing a private business jet is one of the best investments someone can make, especially for someone who travels a lot for business purposes. However, look at where we are today–private jets are definitely a good investment opportunity to consider. The world has changed so much, especially after the COVID-19 pandemic. Not to mention that there are benefits of traveling privately that are not looked at from the investment aspect.

Partially covering the expenses of purchasing a private jet is possible, and even fully covering it with the right private business jet management company. So, if the idea of purchasing a private jet crossed your mind, there’s good news for you–that it is possible for you to turn this purchase into a profitable asset and enjoy it on the side. No matter how many business trips or vacations you need to use the jet, you most likely won’t need your private jet every single day, and it’s a waste if you just leave the private jet parked. So, let’s get into the reasons why purchasing is private jet is a good investment for a business traveler as an investor as well (and of course, to enjoy some vacations!)

Before we get into how you can profit from the jet, let’s state some facts. Undoubtedly, a private jet is a depreciating asset just like any other vehicle–the more you use it and the more time you had it for, the less its value. Therefore, it’s not realistic to estimate the time needed for it to be chartered to be able to provide a stream of income to the owner.  Simply, you purchase a private jet to use for business, and the time remaining is the time available for the jet to be chartered.

It has been known that in order for a private jet to make a profit, it needs to fly around 600-800 hours a year. This large number of hours challenges the private jet owner because they need to free the jet for long durations, in addition to their personal use. This also makes the asset depreciate faster, hence, its value decreases because of the prolonged use the owner puts the jet through. Nonetheless, this doesn’t mean that a private jet isn’t a clever investment opportunity, and here is why…

According to CNBC, private jet use is more popular than ever these past years. Businesses for major private jet manufacturers have been booming for some time to the extent that these businesses find it challenging to keep up with the rising demand for private jets ever since the COVID-19 pandemic. In 2021, Wingx, an aviation data research company, recorded 3.3 million private jet take-offs, which is seven percent more than there were in 2019.

But the question is: why is there a sudden boom in the demand for private jets? There are a few reasons, first, is that today that there are more companies globalizing and operating across several countries. Surprisingly, this isn’t true for just big multi-national companies, even smaller companies are prioritizing going global right away. So, not only big business owners own private jets, but owners of smaller businesses as well. Also, business owners sometimes have to make trips that are planned right away, so it’s not always possible to find a commercial flight at that specific time.

Another reason is the COVID-19 pandemic which left people scared to travel in confined areas with a large group of people and they weren’t enough flights to cater to travelers because of the lowered capacity needed to maintain a safe distance between travelers.

Technology made it easier for private jet owners to charter their assets because there has been an increase in the number of applications that directly connect the private jet to the customer which makes charter booking much faster and more efficient. Booking has become as easy as a few clicks, which has attracted many investors and business owners to opt for private jets to suffice their business needs as well as earn some income on the inside without the hassle of having to make deals with customers, thanks to the UI/UX industry that has made it easier for customers to navigate through the system.

This also opened opportunities for businesses such as aircraft management companies to charge private jet owner fees to manage their aircraft for them, whether the owner chooses to charter the aircraft for months at a time, or for hourly flights.