In these hard financial times, owners of private jets are finding themselves unable to afford their lavish lifestyles. In March of 2011, business tycoon Warren Buffet’s company, Berkshire Hathaway, made history by making the largest personal plane purchase of all time. His foresight of luxury air travel for the corporate elite gave him the confidence to make a purchase of over 400 jets from Bombardier Inc., the world’s largest business-jet maker. The fall of the housing market in America inhibited Americans from a budget for luxury travel. With the slow and steady increase in our housing market, Berkshire Hathaway feels confident that the global economy will bounce back and luxury travel could be bigger and better than ever before. Scott Ernest, the CEO of Cessna planes, believes Buffets purchase showed “confidence in the growing strength and long-term outlook of the clobal economy and the aviation industry.” Even revolutionaries like Sir Richard Branson of Virgin Galactic are on the verge of launching cutting edge space travel – the ultimate experience in aviation.
The power Buffett possesses with his net worth of $44 Billion enabled him to make a great deal with manufactures of the aircrafts. When you are able to make such a significant order, obviously the cost of goods will go down considerably. Basically, Buffett cornered the market of 8-12 passenger small business jet planes that are affordable for the 10% – .001% instead of larger jets. This allows more business men opportunities to travel in style, and the options of available places to fly is now almost limitless and it opens them to new opportunities such as creating new jobs for struggling economies. Warren Buffett has almost created his own industry and no-one will be able to compete in that sector of the market place because of his net worth. It will be interesting to see how this will play out and if this can be added to Warren Buffett’s repertoire of successful ventures for Berkshire-Hathaway.