UBS: Bizjet Market Improving gradually
Deterioration in the business jet market is continuing to slow, according to UBS Investment Research’s latest monthly business jet report. The September market index came in at 43, some 16 percent higher than in July and the sixth straight move higher but still short of the 50 mark that indicates market growth. “However, our straight-up measure of absolute business conditions has begun to show some incremental improvement,” noted UBS aerospace analyst David Strauss. Pre-owned business jet inventories–currently running about 17 percent–are coming off their peak, declining 3 percent last month and now 4 percent below the May peak on the third sequential decline in the past four months. Meanwhile, the firm said the fractional fleet is “well undersold” and likely to shrink.