There has been a steady rise in the number of first-time buyers of private jets, at least according to a report by Colibri Aircraft, a company that specializes in the aircraft business.
Crypto-Millionaires Look to the Skies
The report highlights that as much as 21 percent of the pre-owned aircrafts the company sold in 2017 have gone to first-time buyers. This is a 50 percent increase over the 2014 figures. The average price for a new jet stands at $3.68 million.
There has been a significant rise in the number of private airplanes sold, which can only be attributed to a better global economy. The rising number of very high net worth individuals and ultra high net worth individuals are naturally the demographic willing to shell out such a large sum for their convenience. A slight fall in the prices of these second-hand jets has also aided the rise in sales figures.
Oliver Stone, Managing Director of Colibri Aircraft, said:
“All of this is leading to more people chartering private jets and, for some of those that do this, they eventually decide they want to own their own aircraft.”
A decade has passed since the infamous market crash and financial collapse of 2008. Since then, businesses now have a stabilized economy and improved earnings with which to work. Hence, companies and individuals are willing to spend such large sums.
More importantly, research also predicts that within the next ten years, buyers will be able to buy private airlines with bitcoin, ether, ripple or any other cryptocurrency.
Olivier Janssens, a Belgian tech entrepreneur, expressed his optimism for the flight industry after buying a last minute flight in 2014 with bitcoin:
“I am a firm supporter of bitcoin and the efficiency it offers compared to other currencies – as a payment method and an investment. The flight was the biggest bitcoin payment transaction I have made, but it was very easy and efficient, particularly as I wanted to fly at very short notice. It was the perfect way to pay. I’m working on several bitcoin business projects and very excited about its future potential.”
A new class of millionaires and billionaires is coming into existence as we approach the year 2020, which has been heralded as the rise and start of the crypto generation of millionaires and multi-millionaires. Recently, Forbes issued a list of the top 20 wealthiest people in the crypto space. Chris Larsen, the co-founder of Ripple comes out ahead at the top of the list.
Quartz also reported on an interesting correlation between Ethereum’s rising price and Lamborghini sales. At current prices, one Lambo would run crypto investors roughly 11 bitcoins and just over 120 ether. Ethereum founder, Vitalik Buterin, is sure to be more than a bit concerned over these figures.
$ETH and Lamborghini sales are surging together. Haha
— Zack Voell (@zackvoell) January 15, 2018
A booming economy and a more flexible payment model are the key reasons for why 67 percent of people believe that the rise in private jet sales will increase. It is also believed and hoped that in the coming years, cryptocurrency will mature as a payment option along with technology and infrastructure improvements. In any case, a swath of individuals are growing quite rich following the excitement of the new financial technology.
Only time will tell if this will result in greater economic inequality, or of the original tenants of “banking the unbanked” and creating a “parallel economy” outside of the dastardly hands of traditional financial institutions will be upheld.