JPMorgan: Market Optimism ‘Warranted’

 - November 2, 2009, 4:29 AM

According to a monthly business jet report issued by JPMorgan last month, the pre-owned market recovery continues though new jet demand is expected to lag. JPMorgan said used inventories fell 50 basis points in September, to 13.6 percent of the in-service fleet, the “second consecutive meaningful decline and further evidence that we are past the cyclical trough in the used market.” The investment firm predicts that pre-owned inventories will decline further in the coming months. Average asking prices for used business jets slipped again, declining 1.8 percent last month. Prices, on average, are 24 percent below the peak last November. However, JPMorgan said, “Some optimism due to [improving] used market conditions is warranted.”