Is The Private Jet Boom Heading For A Downward Tailspin

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Updated: July 3, 2007

It has been nothing but up,up,up for the private jet industry in the last decade. In fact sales of private jets for businesses have risen 185% within the past ten years and 18% since 2006. CEO David MacNeil is a big fan of the business jets, having owned three jets in the last four years with plans to upgrade again in 2008. 

MacNeil comments on his jet dependence, "All the faxes and telegraphs and text messages and e-mails are fine and well, but when you want to put a significant deal together it has to be done in person." 

Owning is no longer the only option for business executives, fractional ownerships and charter memberships are popular choices for persons interested in less commitment. 

This rising popularity has made private jets the go-to investment at the moment. In fact jets bought brand new last year are selling for more as a used jet this year. Of course whenever anything, including the jet industry, experiences growth constantly for a long length of time, people can’t help but wonder when the downswing will begin. Experts advise watching the stock market for an indicator that jet values are about to fall. "The aircraft market is joined at the hip with the stock market." Says Fletcher Aldridge, founder and publisher of the most popular price guide used in the private jet industry, Vref.

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