The way people buy private jets is flipping upside down, and the CEO of a private aviation company says the tech industry's wealth boom is the reason.
Israel Slodowitz, founder and CEO of Craft, told the "Sourcery with Molly O'Shea" podcast that first-time buyers are no longer starting with small charter flights or entry-level planes. Instead, they are jumping straight to super-midsize aircraft like the Bombardier Challenger 350 or heavy jets such as the Gulfstream G450, which can run tens of millions of dollars.
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In the past, someone looking to get into private aviation would typically start by chartering a flight or buying a modest used jet to test the waters. That pattern is disappearing. Slodowitz said newcomers are bypassing those early steps entirely and opting for the most capable aircraft available.
"They're going straight towards buying or even chartering the latest and greatest," Slodowitz said.
The spending shift traces back to a wave of new money flowing out of the AI and technology sectors. Slodowitz pointed to SpaceX's historic Nasdaq listing earlier this month and OpenAI's anticipated IPO as signs of the kind of wealth being created right now. He called it the largest wealth creation event in human history and said it is reshaping how people choose to spend.
"We're seeing like not just an insane wealth creation moment -- probably the largest we've seen in the history of humankind -- but we're also seeing a shift in how people spend their wealth and their priorities," Slodowitz said.
The CEO expects the number of private jet users to more than double, which he said could create a "huge cataclysmic effect" on the industry. If demand keeps climbing faster than manufacturers can deliver planes, the market could face a jet shortage. Aircraft production timelines are long, and the supply chain for business jets does not ramp up quickly, which makes a supply crunch a real possibility if the buyer surge continues.
Slodowitz also pointed out a trend that runs against conventional wisdom: aircraft values are going up. Jets are normally depreciating assets, but he said prices are rising for the first time, especially at the high end.
"They don't go up in value normally, but we're seeing them go up in value for the first time almost ever, especially in the higher end of the market," he said.
The industry, Slodowitz warned, is not ready for what is coming. He predicted price swings and uncertainty until the market adjusts to the new wave of demand.
"There's going to be a lot of adjustment and price fluctuation and uncertainty until the new wave sort of takes effect," he added.
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