Sentinel Aviation is currently assimilating and absorbing President Trump’s resounding US Election victory, and how this could affect the private jet industry.
Should the global business aviation industry care? Let’s look at a few statistics:
- Numbers: The US has roughly 67% of the world’s private jets (about 15,000 private jets), which is more than all other regions combined.
- Fleet Size: The US and Europe together account for 77% of the world’s private jets.
- Aviation Market: The US business aviation market contributes around $150 billion to the US economy annually.
- Business Jet Flights: In 2021, business jet flights in the US increased by 30% year-on-year.
- UHNWIs: The number surged by 52% in the United States and aided in the increased procurement of business jets.
With these statistics in mind, the answer is a resounding yes, we really need to take note of President Trump’s victory!
Interestingly, we published an article earlier in the year on how UHNWIs and the ultra-rich around the world had been delaying the purchase of yachts and jets in the hope of massive Trump tax breaks. The very top of the 1% are waiting until after the presidential election to buy big ticket items like jets in the hopes that Donald Trump’s election could save them millions on taxes.
How Could the Trump Presidency Influence the Global Private Jet Industry?
1. Economic Policies and Business Climate
A Trump administration might favour tax policies that support businesses and high-net-worth individuals, potentially increasing disposable income for private jet travel and encouraging corporate charters.
Economic policies aimed at growth could support industries that rely on private jet travel, such as finance, technology, and real estate.
2. Regulatory Changes
Trump has historically advocated for deregulation, which might result in relaxed regulations around private aviation, potentially reducing operational costs for private jet operators.
Environmental regulations, such as restrictions on private jet emissions, could be minimised, affecting the sustainability requirements in private aviation.
3. Infrastructure Investment
A focus on infrastructure might improve airport facilities and private aviation infrastructure, benefiting private jet operators with better amenities, increased access to regional airports, and streamlined travel routes.
4. International Relations
Trade policies and foreign relations can impact international charter demand. Eased trade restrictions could encourage business travel, while new tariffs or travel restrictions may lead to regional shifts in charter demand.
Summary
While it is challenging to predict exact outcomes, policies favouring business, deregulation, and infrastructure investment could generally support growth in the private jet industry.
Sentinel Aviation awaits to see how the next few months unfolds. We will report back our insight and thoughts!
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