UBS: Bizjet Market Weakening
The business jet market index from UBS Investment Research last month fell a further 8 percent, to 37, the second consecutive decrease and below the threshold of 50–the median above which a growing market is indicated and below which deterioration is seen. This follows a stable first half, in which the index held at 50–meaning stabilized conditions–for three consecutive surveys. All five index components–customer interest, aircraft pricing, pre-owned inventory, customer willingness and 12-month outlook–declined in the most recent survey relative to July. “Overall, we see risk of a muted recovery given significant [pre-owned aircraft] oversupply, fractional weakness and cautious outlook for Europe,” concluded UBS aerospace analyst David Strauss.