Market Deterioration Slowing, UBS Says

 - March 31, 2009, 6:35 AM

UBS Market Research’s latest snapshot of the business jet market shows continued incremental deterioration in market conditions in February, although at a slower pace than in the November-to-January time frame. The depressed market conditions are being caused by “way too much” pre-owned inventory for sale, falling pricing and tight financing, the firm said. Pre-owned business jet listings moved 2 percent higher in February and are now 69 percent above prior year levels, according to UBS. On a more positive note, UBS’s 12-month outlook score for the bizjet market continued to move higher, reflecting respondents’ view that the market could be near the bottom. UBS has also lowered its business jet delivery forecast for 2009 to 2012, reflecting “trough deliveries at 550 to 600 in 2010, just slightly above the prior cycle’s trough.”