Private Jets: The Power, The Prestige & The Big Changes Ahead

Date: 12 Feb 2025

Karen Jones

Private aviation remains a dynamic and evolving industry, with increasing demand driven by ultra-high-net-worth individuals, regulatory shifts, and sustainability efforts.

High-profile aircraft ownership, such as Donald Trump’s Boeing 757 nicknamed “Trump Force One” and Drake’s Boeing 767, underscore the prestige and utility of private jets. At the same time, global trends in business aviation point toward innovations in fuel efficiency, sustainability initiatives like Sustainable Aviation Fuel (SAF), and the rising appeal of fractional ownership. However, the sector faces growing regulatory scrutiny, particularly in Europe, where environmental concerns and legal challenges, including asset freezes on jets owned by sanctioned individuals, are becoming more common.

Sustainability and Innovation in Private Aviation

Yosef Hafiz, Vice President Sales and Marketing at NASJET based in Saudi Arabia adds his view of the jet space, “Serving customers since 1999, NASJET is one of Saudi Arabia’s top private business jet operators. We serve a diverse clientele of UHNWi in Saudi Arabia and the surrounding GCC region, with a focus on aircraft management and charter services. The purchase of more modern, ecologically friendly small business aircraft that are customised to each buyer’s specific needs and tastes has become increasingly popular in recent years. This initiative aligns with the Kingdom’s commitment to reach net-zero emissions by 2060 and Saudi Arabia’s Vision 2030, which highlights sustainability as a crucial element. Our goal at NASJET has been to provide outstanding services while adjusting to the evolving needs of environmentally friendly aircraft.”

Hafiz adds, “The aircraft most recently added under management was a Pilatus PC-24 a super versatile and economical business jet. The aircraft is equipped to seat 8 passengers and can fly around 2,000 nm.  The price range is in the ballpark of $8.5m USD. Annual insurance premiums are half that of a medium size jet, and the aircraft can operate to smaller airstrips providing a greater level of convenience for the owners.”

Regulatory Pressures and Legal Challenges

Ioannis Sidiropoulos, LL.M LSE, UvA, Legal Consultant based in Cyprus reflects on the industry in Europe. “Business aviation contributes more than €100 billion to the European GDP, evolving from a niche luxury market to an essential industry driven by engineering advancements and efficiency. With connectivity across 80,000 airport pairs, the sector remains crucial for economic growth. Innovations in aerodynamics, avionics, and propulsion systems have enhanced fuel efficiency and expanded range. Regulatory frameworks, such as ICAO and EASA standards, push sustainability through Sustainable Aviation Fuel (SAF) and hybrid-electric propulsion, with investors in the latter two sectors poised to benefit from increasing sustainability mandates under the EU Emissions Trading System (ETS) and the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). However, recent developments, such as the exclusion of private aviation from the EU taxonomy and new business aviation taxes in certain EU Member States, signal mounting regulatory pressures and increased possibility of frictions. Trends in legal disputes over environmental compliance, taxation, and aircraft ownership are already emerging. Policy restrictions may also impact flight operations, leasing agreements, and SAF adoption, requiring aviation stakeholders to proactively manage regulatory risks.”

Of Cyprus Sidiropoulos adds, “Strategically located at the crossroads of Europe, the Middle East, and Africa, Cyprus attracts high-net-worth individuals and corporations wanting private aviation solutions. Its expanding infrastructure, regulatory environment, and adherence to EASA standards make it a good jurisdiction for aircraft registration and operation. Larnaca and Paphos International Airports offer Fixed Base Operator (FBO) facilities, streamlining customs and ground handling. The island’s legal and financial frameworks support aircraft ownership structures, positioning it as a strategic hub in the evolving business aviation landscape.”

Sustainability and the Role of Jet Charter Services

Toby Edwards, Co-CEO at Victor private jet charter, speaks more on sustainability. Victor offer Sustainable Aviation Fuel for all bookings because business aviation is coming under increased scrutiny in Europe, where it is believed by many to be unsustainable. Therefore, ensuring credible climate action is built into our strategy, is a good plan. For instance, we have a new App, where we enable UHNWi’s to purchase Neste’s sustainable aviation fuel (SAF) on every charter booking. By doing this we want to highlight the influential role private jet users can play as early adopters of SAF.” Edwards adds that he is a member of Project SkyPower, a CEO-led initiative, focused on accelerating take-off for e-SAF in Europe. E-SAF is a ‘drop-in fuel’ which is forecast to be an important lever in reducing emissions from long-haul aviation by 2050. It could produce 90% fewer emissions over its lifecycle from production to use than fossil jet fuel, with fewer feedstock constraints and lower environmental risks than other SAF types. Project SkyPower say, “With 70% of planned e-SAF production capacity in Europe, the region is well positioned to lead the way in this field.”

Of client demand Edwards adds, “On-demand private jet charter clients want to fly further, in larger cabins, evidenced by the significant increase in the volume of ultra long-range aircraft we chartered in 2024. Types of ultra long-range aircraft we have chartered in the past year include the Global Express, Gulfstream G650, Falcon 7X, Global 6000.”

Sustainable ‘new builds’ wait for Regulation and Licensing to catch up

Mark Hagan, Director of VAT (Equiom Tax Services Limited) and David Shefford, Director of Client Services (Equiom Isle of Man) add their insights, “Whilst demand remains strong for passion asset acquisition amongst UHNW’s, specifically business jets and superyachts, Equiom have observed increasing levels of scrutiny from a regulatory and tax perspective by the respective authorities. However, in certain cases, some “new builds” using a more sustainable propulsion system are having to wait for regulation and licensing to catch up, for the asset to be able to formally register in a jurisdiction. It’s exciting to see new innovations coming through and long may it continue! Given the value of the assets and the influence of sustainability, some clients are also undertaking fractional ownership, to reduce their carbon footprint and manage costs and their risks of which there are many. We constantly horizon scan, engage with the respective authorities when appropriate, and continually seek to get ahead of the regulatory and tax risk curve for the benefits of our clients. Our mission is to facilitate our HNW client’s ultimate enjoyment of their business jets and superyachts.”

Market Trends and the Future of Business Jets

Tim Barber, EMEA Aircraft Sales for Duncan Aviation who work with aircraft owners, management companies, charter brokers, family offices, lawyers and tax advisors says. “Last week was the Corporate Jet Investor conference and protesters were again outside calling for a ban on private jets. The industry is making many changes, however, it’s important to realise that aviation is responsible for between 2% and 2.5% of greenhouse gas emissions and business aviation is just 2% of that, so somewhere between 0.04% and 0.05% of the problem.”

Barber continues, “In terms of market trends, the latest aircraft are capable of even longer-range trips with all of the leading manufacturers edging towards aircraft capable of 8000nm trips. All these aircraft have the latest technology guaranteeing improved fuel efficiency and lower noise levels both inside and out. The levels of comfort factored into the flying experience continue to reach new heights too, so there is always a good demand for the latest models and the manufacturer’s order books are looking very healthy. At Duncan Aviation we are building new hangars and paint shops to accommodate these new, larger aircraft for our client base.”

Private Aviation Trends in the Cayman Islands and Beyond

Hannah Diss, Managing Associate at Ogier’s London office, who advises on the laws of Cayman and British Virgin Islands describes the themes she is experiencing in the jet world. “We are continuing to see innovation and growth in the private aviation market in the Cayman Islands and globally, driven principally by UNHW individuals who value the convenience, privacy and luxury of private jet ownership. North America continues to dominate the business jet market, and we expect to see exceptional growth in the demand for private and business aircraft in that region.”

Diss adds, “During the COVID pandemic, the Cayman Islands responded to the decreased use of private aircraft with an uptick in registrations on the CAACI’s Transition Register. The register is essentially, a temporary registration between different ownership or operating phases.  This remains a popular choice for lessors and financiers who want to store or sell their aircraft for a limited period, and we expect that trend to persist this year. Globally we expect to see a marked increase in fractional jet ownership in 2025 and beyond, which will require careful thought on suitable jurisdictions for the AOC (Air Operator Certificate) and aircraft registration location. Our horizon scanning also reveals a continued focus on carbon offsetting and sustainability. The development of Sustainable Aviation Fuel (SAF), as well as improvements in propulsion technology and carbon capture, storage and offsetting are sure to drive change in the industry and build a solid foundation from which to adapt to the new environmental and regulatory reality.” IATA says of this new fuel. “SAF is a liquid fuel currently used in commercial aviation which reduces CO2 emissions by up to 80%. This is done by using non-petroleum feedstocks which are things like food scraps, packaging, paper, textiles, and other solid waste from homes and businesses and cooking oil and other non-palm waste oils from plants.”

Legal Considerations in Jet Ownership

Charlotte Hill, Partner, Penningtons Manches Cooper in the commercial dispute resolution team, in London adds her view. “I have acted in the past for several UHNWs who have found their private jets grounded as part of a draconian, sweeping worldwide freezing order. Freezing orders can be used in connection with sanctions. This legal measure, which is designed to prevent the dissipation of assets, has extended its reach to luxury aircraft, underscoring the severity and breadth of such orders. The freezing order is often a tool used in fraud and asset recovery cases; it aims to preserve assets across multiple jurisdictions, ensuring they are still available for potential enforcement of court judgments. Just because private jets can be moved around and arguably hidden doesn’t mean that they fall outside the scope of a worldwide freezing order. The severity of breaching such an order is serious – it contains a penal notice which can result in a large fine and imprisonment (if held in contempt of court) if breached by the UHNW who is subject to the order, or anyone who knows of the order and helps the UHNW to breach it. There are sometimes ways to negotiate the continued use of the private jet while the freezing order stays in place.”

I ask what happens if a jet is still used in these circumstances. Hill adds, “If the jet is flown when it should be grounded, action can be taken to enforce compliance of the freezing order. The process would typically involve obtaining a court order to seize the jet, like how ships can be arrested under maritime law. The specifics can vary depending on the jurisdiction and the details of the freezing order. The persons involved in the process would then likely be subject to contempt of court proceedings for assisting in the breach of the freezing order, so they too could be held in contempt and fined and imprisoned if it can be proven that they knew of the order but assisted with its breach. This is usually enough of a deterrent so long as you have made the operators of the aircraft aware of the order.”

Hill continues. “As to the ownership of the jet, it will depend on the drafting of the freezing order. Typically, in England, the standard format is that all assets are caught whether or not they are in the UHNWs own name, whether they are jointly or solely owned, and, in some cases, whether the UHNW has a legal, beneficial or other type of interest in the asset. The standard wording also includes any assets which the individual has the power, directly or indirectly, to dispose of as if it were his or her own. It is therefore a very wide, all-encompassing definition and so if the UHNW was a UBO or director of the company which owned the jet, it would likely be caught by the freezing order.”

Private aviation continues to be a symbol of prestige and efficiency while facing increasing scrutiny over its environmental impact. Industry leaders are pushing for sustainability through innovations like Sustainable Aviation Fuel (SAF), hybrid propulsion, and carbon offsetting. At the same time, regulatory challenges, legal disputes, and market trends are shaping the sector’s evolution. As business aviation adapts to these changes, the balance between luxury, efficiency, and environmental responsibility will define the future of private jet travel.

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