European Bizav Market Recovery Lags That of U.S.
“The European business aviation market recovery is lagging that of the U.S. market by 12 to 18 months,” Chad Anderson, president of business jet broker Jetcraft, told AIN today at EBACE. “Many European operators are rightsizing their fleets, which makes this a stronger recovery. However, there is still a lot of price fragility in the pre-owned business jet market.”
If anything, Anderson said, the U.S. market is helping to prop up the recovery in Europe. “Europe has an ample supply of good, young pre-owned business jets, which are quickly being snapped up by buyers in the U.S.,” he said. But there are still buyers in Europe, “particularly those in it for the long term.”
The European business jet market has typically been driven by light and midsize jets, a segment Anderson said is supported largely by wealthy individuals who make “emotional purchases rather than business ones.” But as sales in these segments have diminished, he said, the business jet market in Europe is being buoyed by increased demand for large-cabin jets, which are typically bought by corporations that must justify the expense.
Over the next 12 to 24 months, Anderson expects the pre-owned business jet market in Europe and elsewhere will carry on with its recovery. However, he believes prices will continue to bounce along the bottom.