Used Bizcraft Market Could Stay Down THrough 2014
The market for pre-owned business aircraft will remain flat for at least another 12 to 24 months and may not completely emerge from the down cycle until 2013 or 2014, according to Freestream Aircraft chief executive Alireza Ittihadieh. Addressing the International Corporate Jet & Helicopter Finance conference in London on February 17, the veteran aircraft sales and acquisitions specialist said that continued uncertainty in the world economy is undermining market recovery. But he also called for aircraft buyers and sellers to be far more realistic in closing the wide gap between asking prices and bid prices. Ittihadieh said that some older business aircraft simply need to be withdrawn from the market altogether to help correct the supply-demand imbalance. He also wants banks to be more willing to lend funds against the value of the aircraft asset, rather than just the credit-worthiness of the borrower, and to be willing to take more risk. A full report on the International Corporate Jet & Helicopter Finance conference will appear in the April edition of AIN.