What did Warren Buffett see in 1998 to buy a company that offers private jets? The famous investor owns, through Berkshire Hathaway, of the world's largest private aircraft operator, Netjets. More than a quarter of a century later, Buffett must smile when seeing that the shared private plane industry – which allows several people to be co -cutter to an aircraft, using it in shifts or renting it – it is upwards. It is a business that last year achieved record figures and whose activity grows 59% since 2020, according to the consultant specializing in the business aviation industry, Wingx. Moreover, the shared jet operators made almost 700,000 flights in 2024, a figure not seen in the last five years. The take -off of the sector is also reflected in the stock market. The good results presented by manufacturers such as General Dynamics (which assembles the Gulfstream Jets) and Bombardier in the fourth quarter of 2024 predict a future with demand for private jets at maximum. Deutsche Bank analysts highlight that private airplanes co -ownership “increased 10% year -on -year in 2024 and 60% compared to 2019 ″, while private Jets corporate business grew only 13% in the last five years. Citi, for example, highlights the evolution of the numbers of the Brazilian manufacturer Embraer, whose division of private jets fired its sales 70% in the last year. The figures are record: 26.3 billion dollars in their request for orders. But the most interesting thing is that this division was the one that grew the most, even ahead of segments such as defense and security, which in the last two years has grown strongly due to the increase in defense spending in the world. Business has reached cruise speed. The US Global Jets ETF quoted fund, specialized in this market, has shot more than 55% in just six months in the heat of good expectations and before a consumer of great purchasing power that is choosing to abandon its jets in property and travel without Leave trace. They point it out in Deutsche Bank, where they comment that «companies and celebrities cannot be tracked on these flights, which provides them with privacy, something very wanted by these customers.» The movement has been flagged by Bernard Arnault and Elon Musk. The first, owner of the LVMH luxury empire, sold his private jet in September 2022 after filtering his flights on social networks. Tesla's founder's trips were also traced and Musk ended Purchase recommendation. Analysts have raised the benefit forecasts by the company's action and highlight the rebound of the income of their after -sales division. In the last 12 months the actions of the Canadian manufacturer shoot 62.8% in the stock market, surpassed by the Brazilian Embraer, whose rise brushes 170%. Faced with them, General Dynamics accumulates a 10% drop in this period, which is the only one that has lost the jet business rebound, according to Deutsche Bank. How much is it difficult to rent a plane of this type? It depends on the aircraft model, as stated on the French company of private flights Aeraffaires. A flight in a light jet, such as a Cessna Citation Encore, can amount to 3,500 and 4,000 euros per hour, while in a medium jet, such as a Gulfstream G200, exceeds 6,000 euros per hour. Buying an entire jet is another option, with prices ranging from 1.25 million dollars for a Cessna Citation Mustang used, to 81 million dollars for a new global bombardier. Javier Barriga, CEO of the Spanish firm IJet Aviation, which has a fleet of more than eight planes and two hangars at the Malaga airport, explains that “shared property usually involves two to two to Eight investors and includes all operational aspects, from crew and maintenance, to insurance and flight management ”. Beyond, companies dedicated to offering this service have strongly increased their aircraft orders. The American Flexjet has sealed a request for 7,000 million dollars with Embraer to deliver 182 private jets and hopes to have a fleet of 600 private planes in 2031. Netjets, its competitor, hopes to add up to 1,500 aircraft in the next 15 years. Strong investments necessary to increase the fleet of this type of aircraft are also seen as an attractive alternative for fixed income investors. «The lease rates of new and used airplanes offer an attractive potential for yield and income because there is an imbalance between supply and demand,» they highlight in the world's largest fixed income manager, Pimco. Of course, in Deutsche Bank they warn that «entering the business implies cancellation risks and price concessions, but running them is worth it because the growth of the segment can be captured.» Continue reading