Signs Point to Bottoming of Used Bizjet Market
Following a trend that began three months ago, the UBS Business Jet Market Index moved up again this month, signaling that used jet sales may be on a rebound. Although the index is still in negative territory, this “reflects a slower pace of deterioration,” according to the UBS Business Jet Survey released yesterday. On a scale of zero to 100, where anything above 50 indicates stable conditions, the latest index is at 25, while November hit a record low of 13 and January’s score had risen to 20. On a separate measure of absolute business conditions (with a scale of zero to 10, with five indicating stable conditions), the score dropped to its fourth consecutive all-time low of 2.2, although when plotted on a graph, this index appears to be bottoming. Said one respondent, “Buyers are looking for good deals and making very low offers, [and now] owners are beginning to accept them.” While the relatively few sales taking place are at heavily reduced prices, this at least gives buyers and sellers starting points for negotiations. In addition, 26 percent of respondents reported an improvement in customer interest since the previous UBS survey, 36 percent said interest remained about the same and 38 percent saw deteriorating interest.