yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

The Jet Business Bloomberg Editorial March 2012


2m read
·Nov 3, 2024

On another aviation market set to pick up pace: private jets. Well, if you've never flown in your very own plane and you're wondering what it's like, well, there's now a new shop that recreates the look and feel in its bid to sell to the global elite. Olivia Stearns went down to the jet business to see what they've got in store.

Walk on board a private jet and the appeal of owning one is instantly obvious. But to prove the point, Steve Rozano has built a mock-up. "Okay, so as you can see through the windows here, it's simulated that we're flying. We could change it to day or night, or thunderstorms, or sunny."

"And how much would this cost?"

"This is about 85 million dollars new." He set up a showroom right in the heart of London, hoping to sell used planes to buyers from all around the world. "We see activity coming from China, from India, actually from Mexico, Nigeria. We see a lot of these places which used to be frontier markets, and they went to emerging markets, and now they're real significant markets. I'd say about 60% of our business is the ultra-high-net-worth type people. 30 percent are the corporate executives buying for the corporations, and about 10% are governments."

To browse the inventory, Verzano has set up an interactive display complete with all the interior and technical specs at the Jet Business showroom. Customers can come in and work out exactly what type of plane is best for them, depending on the size, speed, and cost. "So for example, I've been able to find a three-year-old G550 that I could buy for about 45 million dollars that would get me and 16 of my closest business associates to New York for about forty-five thousand dollars."

"And here on the simulation wall, the plane is actually traced out in real-life scale, so I can tell exactly how well I would fit."

So, how much demand can Verzano actually expect? Well, JP Morgan says the business jet market is largely a function of corporate profits. By that metric, they expect new deliveries to bounce back some eight percent this year after flatlining in 2011. In the pre-owned market, though, jet prices are still stuck in a trough, so analysts say it's too soon to conclude that things have simply bounced back.

"I think everyone's desperately looking for signs that it adds, but they're not really there yet. On average, 12 percent of all jets change hands every year, and that's happening, but the prices are way lower than they were in 2007. The big aircraft have held up much stronger than the large Gulf Streams. The large Bombardier aircraft have held up. There's a lot of demand, demand fueled not just by the small crop of the world's wealthiest who can afford those big planes but also by the fact that new buyers in emerging countries have further to fly."

More Articles

View All
Kinetic energy | Physics | Khan Academy
What’s common between your morning hot coffee and a beautiful song coming from a guitar? To answer that question, we need to explore what kinetic energy is, and that’s what we’ll do in this video. But let’s zoom out a little bit. What exactly is energy t…
A Look Inside Billionaire Seth Klarman's Portfolio
Seth Klarman is one of the most highly respected investors ever. He is a value investor and portfolio manager of the investment partnership, the Baupost Group, founded in 1983. The Baupost Group now manages $7 billion and has average returns of nearly 20%…
How interest rates affect interest rates, financial flows, and exchange rates
What we’re going to do in this video is try to think of the chain of events that would happen if the supply of loanable funds were to increase in the United States. The way that that could happen is, let’s say, the Federal Reserve were to, so to speak, pr…
See What Canyon Life Is Like for a Navajo Pageant Winner | Short Film Showcase
He hey! [Music] I read your status last night. You posted that someone else was holding you tight. Hey, hey! 1, 2! [Applause] 3! We y because it makes the spirits hear us, that we’re here in the canyon. The spirits in the ruins should know people are go…
Change in angular velocity when velocity doubles
We’re told that a car with wheel radius r moves at a linear velocity v, and this is a bolded v to show that it’s a vector. Suddenly, the car accelerates to velocity 2v. How does the angular velocity of the wheels change? So pause this video and see if you…
The Ripple Effect – Ep. 3 | National Geographic Presents: IMPACT With Gal Gadot
GAL: “People aren’t statistics.” 19-year-old Arianna said this when she lived through one of the worst natural disasters in Puerto Rico’s history, leaving her friends, family and neighbors without access to clean water. Seeing how deeply real lives have …