UBS: Bizjet Market Deteriorating

Aviation International News » January 2009
December 29, 2008, 7:04 AM

UBS Investment Research’s business jet survey released late last month shows a contracting market index that is “reflective of a market that continues to rapidly deteriorate.” According to UBS analyst David Strauss, “We believe this [is] a market with few serious buyers, too much supply and pricing that has fallen 25 percent or more over the past six to eight weeks.” A lack of financing is also endangering aircraft manufacturers’ backlogs, UBS said. “While our survey has indicated slowing end-market demand for some time, financing looked to be there to deliver the backlog. However, over the past two months…business jet financing looks to have dried up considerably.” Meanwhile, an increase in inventory of pre-owned aircraft and decline in flight activity “presage what we think will be a significant slowing in new aircraft demand.”

FILED UNDER: 
Share this...

Please Register

In order to leave comments you will now need to be a registered user. This change in policy is to protect our site from an increased number of spam comments. Additionally, in the near future you will be able to better manage your AIN subscriptions via this registration system. If you already have an account, click here to log in. Otherwise, click here to register.

 
X