Middle East oil money fuels demand for private jets
Demand for private jets from wealthy individuals in the Middle East shows no sign of slowing, despite the downturn in the global economy.
The Middle East's private jet industry is growing by 18% a year, according to Sheikh Ahmed bin Saeed Al Maktoum, chairman of Emirates and Dubai City of Aviation Corporation, compared to the global average of 10%.
While US orders for private jets are expected to be hit by the credit crunch, the oil wealth being amassed in the Middle East should more than compensate.
Shipments of business jets were up 40% in the first quarter compared to the same period last year, at 297 aircraft, according to the General Aviation Manufactuers Association.
It expects total sales this year to surpass the 1,138 aircraft sold in 2007, albeit by a small margin. Last year, sales were up 28% on 2007.
Orders from outside the US are expected to underpin demand. A five-year forecast by consultancy Honeywell predicts Asia Pacific will be the biggest growth market for private jets, as wealth generation in the region continues to explode. Asia Pacific is expected to account for 15% of global jet sales by 2012 up from 4% last year. The US's market share is expected to fall to 50% from 58%.
There appears little reaction to the environmental unfriendliness of private jets, despite growing awareness of green issues among the wealthy.
A recent report two US think tanks, the Institute for Policy Studies and Essential Action, claimed that four passengers flying a Citation X jet from Los Angeles to New York will each emit five times the level of CO2 as a commercial airline passenger.
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