LOS ANGELES, Sept. 16, 2021 /PRNewswire-PRWeb/ -- JETT, the leading cryptocurrency based aviation brokerage, has seen a huge spike in demand from local and international first time buyers wanting to use cryptocurrency for aircraft purchases.
The uncertainty at scheduled airlines during the pandemic has turbocharged the attractions of private jet travel. The combination of new buyers, especially those utilizing cryptocurrency for aircraft acquisition, a historically low aircraft market inventory and rising prices has had private jet brokerage firms soar during the COVID-19 pandemic.
First time buyers have scooped up so many of the good used planes out there that they're now getting on waiting lists to purchase new aircraft.
But while commercial airline travel creeps back to pre-pandemic levels, the private aviation industry has actually surpassed, by many yardsticks, its pre-pandemic level. Partly this is because there were periods of pandemic reaction in 2020 that tilted toward private aviation's affluent demographic: Americans coming back to the U.S. from abroad; university students returning home when their campuses shut down; people leaving cities for second homes to ride out the lockdown; and holiday travel.
2020 was a blowout sales year for preowned business jets, an early harbinger for the new jet market this year. The number of used aircraft transactions have recently set all-time records, and the inventory to choose from has shrunk to just a third of typical levels.
With few cream puffs remaining, buyers have nowhere left to go except to pay a premium on a used aircraft or be placed on a waiting list for a new aircraft.
It's believed that this is just a first leg up in longer-term, steadily increasing jet prices as more buyers chase a limited airplane supply, all while being fanned by systemic inflation throughout the economy and supply chain.
"We have a lot of first-time buyers," said Barry Oberholzer, Managing Partner at JETT, one of the only aircraft brokerage first that also accept cryptocurrency as a form of payment. "Covid has just seemed to drive most people over the edge."
That trend was on display in the latest round of quarterly reports from the manufacturers, which posted book-to-bill ratios that hovered around 2:1, meaning twice as many units were sold than delivered. Backlogs have increased accordingly.
With aircraft owners willingness to cryptocurrency and new crypto millionaires being minted daily, JETT presents a game-changing platform which allows the diversification of an individual's wallet y owning an aircraft, while also providing longer term tax benefits, leasing options for new owners and unprecedented access to charter flights without the need to transition into fiat currencies.
With an in-depth knowledge of the aircraft industry, and decades of experience within the fintech and aviation markets, the JETT team brings their expertise to owners of cryptocurrencies, introducing access and freedom for those previously only being serviced via the traditional fiat world.
Although owning aircraft can be logistically complex, most private jet users don't handle the details themselves. Owners can hire management companies such as JETT to oversee things such as staffing, maintenance and in-flight catering. Plus, in the United States, generous depreciation rules strengthened during the Donald Trump years allow many businesses to write off the entire price of a jet purchase in the first year.
"With this trend continuing, I foresee a bumper Q4 in the private jet market to satisfy the demand," Oberholzer stated.
Media Contact
Renne Simoes, JETT, +1 3478452373, [email protected]
SOURCE JETT
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