Private Jets and the Ultra Wealthy

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The ExMag
Scritto da The ExMag

The ultra wealthy enjoy a global lifestyle. Extensive domestic and international travel is often a requirement for ultra high net worth (UHNW) individuals with at least US$30 million in assets. UHNW individuals are active players in the world’s aviation market; some frequently use commercial airlines, whereas others charter private planes or have fractional ownership plans.

For a portion of the ultra wealthy population, however, outright ownership, whether in their name or through their corporation, is an efficient and cost-effective solution to their increasingly busy schedule across multiple countries and time zones. Although North American UHNW individuals essentially dominate the world of private aviation, the region’s share of new orders has declined over the last 20 years, whilst regulatory changes in many emerging markets have resulted in the beginnings of an internationalisation of private aviation demand, according to a new white paper by Wealth-X, WINGX Advance and industry expert Hardy Sohanpal.

Combining Wealth-X’s intelligence on the ultra wealthy with WINGX Advance’s analysis of aircraft activity and an industry expert’s operating insight, the white paper creates a profile of the average global jet owner, with a focus on opportunities in the Middle East for the private aviation business.

The typical global jet owner is 63.6 years old, with an average net worth of $US1.66 billion and an average liquidity of US$195.5 million. UHNW individuals who own planes are overwhelmingly male, at 96.8%, and self-made, at 75.1%. Of global jet owners, 16.9% gained their fortunes through a blend of inherited and self-made wealth, and 8.0% entirely inherited their wealth. Jet owners spend about 1.0% of their net worth on private aircraft, with an average value of US$16.4 million per plane.

In contrast, the average Middle Eastern aircraft owner is younger than the global norm (59.1 years old versus 63.6 years), with a net worth of US$1.09 billion and liquidity of US$385.5 million. Middle Eastern UHNW individuals tend to buy more expensive planes than their counterparts — US$48.8 million on average, nearly three times the global average — highlighting the opportunity in the region.

For more insights, download the report.

Credits: WEALTH-X