China’s private plane market nosedives as super-rich tighten their belts; Japan emerges as hotspot for wealthy jet setters at Lunar New Year
- There was a 12 per cent drop in business jet flight hours in China last year as the country’s wealthy elites tighten their belts amid economic slowdown
- Japan is the current destination of choice for China’s richest travellers, as Tokyo prepares to host the 2020 Summer Olympics
China’s private jet market took a beating in 2019, a sign that business confidence among the country’s wealthy elites has faded sharply as the trade war and economic slowdown dampened enthusiasm for big ticket purchases and spending.
There was a 12 per cent year-on-year drop in business jet flight hours in China last year, according to WingX, a data analytics firm focused on the business jet industry. The firm tracked approximately 10,000 flights on 953 business jets, conducted by 264 operators.
Richard Koe, managing director of WingX, cited the impact of the US-China trade war and resulting slowdown as key reasons for the decline, as well as a continued lack of infrastructure and qualified personnel within China.
In last year’s Billionaire Report, PwC and UBS said that Chinese billionaires’ net worth declined by 12.3 per cent in 2018, after years of stellar growth. The number of Chinese billionaires fell by 48 to 325.
Buffeted by the trade war, wealth became more volatile, leading to uncertainty. In the previous five years, China’s billionaires had more than doubled their net worth.
Prices of business jets are likely to come down, as owners now finding they can no longer afford them are putting their planes up for sale, creating a buyer’s market.
It is a trend that may be seen globally. The Jetcraft five-year market forecast suggested that total sales of new business jets would be flat until 2023. Ironically, that means charter prices could rise, as charter jet operators sell off their aircraft, effectively taking them out of the market.