Even as private jet manufacturing continues through the slump it has been in since the economic downtown in 2008, luxury executive jet manufacturing has seen a sharp increase in sales and revenue in the last year that gives many industry insiders hope for light at the end of the tunnel. It is a sharp contrast between closely related industries that only mirrors the greater contrast between manufacturing the smaller private jets and operating them. In 2011 private charter companies stand to see a very profitable year, with more revenue growth than any time since the recession.
Yet due to high jet fuel costs manufacturers of small to mid-sized aircraft are bracing for a significant drop in orders for the less fuel efficient airplanes. This dire situation is further aggravated by the political skirmishes being waged over executive jet depreciation and tax breaks that have often been in the news since President Obama first took aim at the industry over the summer. Industry leaders bristle at mention of the political battles being fought, and the National Business Aviation Association has spent over $630,000 in lobbying the Federal government over such rules in the last quarter alone. The industry likes to remind politicians and journalists that they account for a large number of domestic jobs–about 120,000, to be precise–and a significant chunk of United States exports, particularly luxury airplanes to clients in the Middle East, Asia and Brazil.
On the flip side of the situation, however, the top tier of luxury private jet manufacturers are doing very well. The ultra wealthy socialites of the world are faring far better in the world than their small time millionaire associates, and as a result still have plenty of capital to spend on new and improved jets with faster speeds and better fuel efficiency. The sale of this class of jets is expected to amount to upwards of 25% of all industry transactions for the year, and rake in billions of dollars in profits.