Prices Dropping, but Used Bizjet Inventory Stabilizing

By: Matt Thurber

July 7, 2009
Business Aviation

According to JP Morgan Global Equity Research’s latest Business Jet Monthly report, June used business jet inventories remained stable at 14.4 percent of the active fleet, “a further sign of stabilization at this very high level. Used inventories of Cessna, Embraer and Hawker Beechcraft jets decreased, according to the report, “while other OEMs saw inventories rise.

Of the 23 aircraft models tracked by JP Morgan, 12 had higher inventories, 10 were lower and one was flat. Although used inventories appear to have peaked, average asking prices dropped 2.8 percent in June, the report noted, “decreasing for the seventh straight month.

We expect prices to continue falling to bring the used market toward equilibrium, though this could take some time. Monthly takeoffs and landings in the U.S. “appear to have stabilized” around the 280,000 range, “off a low of 264,000 in February.

The latest results, for the month of May, show year-to-year flight operations 27 percent lower, “the twelfth straight double-digit decline and the seventh decline of more than 20 percent. Flight ops are down 28 percent year-to-date.

Back

Central Europe Bizav Community Gets Its Own Voice February 04, 2010 The new Central Europe Private Aviation Association (Cepa) will hold its inaugural conference in the Czech capital Prague on April 22 and 23.... [more]
First VIP Q400s To Be Outfitted by Field Aviation February 02, 2010 Field Aviation will produce and install custom-designed aircraft interiors for two new Bombardier Q400s under a contract with Avitrade Belgium... [more]
JetNet Unveils Evolution Upgrades February 02, 2010 Aircraft research and information provider JetNet is displaying a series of enhancements to its Evolution software interface here at the... [more]
Embraer chooses execjet trainer February 02, 2010 Embraer has chosen FlightSafety International as the authorized training provider for its mid-light Legacy 450 and midsize Legacy 500 executive... [more]
Lang Lang Hits the Right Note for Bombardier February 02, 2010 Bombardier has named classical music star Lang Lang as one of its business-aircraft brand ambassadors. According to the Canadian airframer, the... [more]