Demand for second-hand private jets ‘a sign of stronger economy’

If anyone is looking for further evidence of a strong economy, here is a sign: wealthy individuals and companies are starting to snap up used private jets before they get too expensive.

Take Steven Myers. A private-equity financier and a licensed pilot, Myers had been patiently looking to buy a jet for years.

But when he began noticing a drop in the number of planes for sale a few months ago, he moved quickly to buy a Cessna CJ2. (Myers would not say how much he paid, but the 2002 model he bought is listed at about US$2.4 million).

“On this particular aeroplane I probably would have made a worse deal if I had waited,” says, who runs Los Angeles-based Dolphin Capital Holdings.

The private-jet business collapsed after the 2008 recession as companies scaled back on travel to cut costs.

Prices had been driven to astronomical levels in the earlier boom and too many planes were built. When the crash came, pre-owned aircraft lost value at a dizzying pace.

But now buyers are coming out of hiding, encouraged by expanding businesses and lower corporate tax rates. It has not hurt that US President Donald Trump, long synonymous with luxury private jets, is seen as someone friendly to the industry.

Former US president Barack Obama had often criticised private air travel, helping to keep the small-jet industry in a longer funk than other high-end segments of the economy, such as watches and sports cars.