Long faces at convention for private-jet set amid 'unbelievably tough' trading

Robert Lea
11 May 2009

It has been one of the great jamborees of conspicuous consumption.

But this year's Ebace convention in Geneva, the annual trade fair of the European private jeterati, will be a more muted affair than previously as corporate jetmakers and private aircraft brokers compare empty sales ledgers.

One London-based jet broker told the Evening Standard before heading off to the opening of Ebace tonight: "Times are unbelievably tough. It's like selling canine faeces."

But only 12 months ago Ebace - the European Business Aviation Convention and Exhibition - closed with its audience being told: "2008 was a record-shattering Ebace an eighth consecutive year of growth hailed as the best event yet."

This year, co-organiser Edward Bolen admits: "Our industry continues to struggle to get through these difficult financial times."

In the world of private jets, there are some clues to the extraordinary collapse in business.

Air Partner which arranges flights for the likes of Gordon Brown and Sir Philip Green recently reported a 17% slump in profits. Signature, the Luton-based private jet maintenance outfit says business is down 12% after a 26% slump at the end of last year.

The industry is, privately, alive with tales of woe.

Dassault, the French manufacturer of the Falcon 7X, a favourite jet of the privately wealthy, used to command a fee of $3 million (£1.9 million) just to jump up the two-and-a-half-year waiting list. Now, it is said, people are paying to get off the list.

One of London's leading brokers who has five eight-seater Lear 45s is reckoned to have not had one taker for even one of the jets over an eight day period - an unprecedented lack of activity.

The City is getting the blame. "Very few investment bankers are flying by corporate jet," said one independent broker. "Take Goldman Sachs. They are sending all their people on scheduled flights. The only guy flying business jet is Woody [Goldman's European chief Michael Sherwood] and that's because he has his own."