Gray background layer has gradient overlay. The ship was extracted using the pen tool along with the eraser.
step 2 of 5
I added a white border to the two pictures and then transformed them using the warp tool.
step 3 of 5
Used elliptical marquee tool to extract the jet. Then made several layers of this part added Gaussian blur to certain layers and radial blur (zoom) on others. Different opacity levels per each of the blurred layers.
step 4 of 5
step 5 of 5
Added some shadows by using a small diameter soft brush with black color, set some Gaussian blur to this. The water spilling over was created using various brushes and the clone stamp.