UBS: Pre-owned Bizjet Inventory Starting To Stabilize

By: Chad Trautvetter

April 9, 2009
Business Aviation

UBS Investment Research’s business jet update released on Tuesday afternoon suggests that the pre-owned business jet market might be at or near the bottom. The firm said that this market segment is a leading indicator for the new business jet market.

According to UBS researcher David Strauss, listings of used business jets slowed to a 1-percent month-over-month increase in March, although they are still 63 percent higher than prior-year levels. While available inventories continue to reach new highs, with 18 percent of the in-service business jet fleet now up for sale, “We think a slower growth rate over the past few months suggests inventories may be beginning to stabilize,” Strauss wrote.

The inventory build-up has been driven by young aircraft, which moved 2 percent higher last month and are now more than double prior-year levels, including a roughly fourfold increase in new aircraft delivery position listings. As a result of increased inventory, UBS estimates that average asking prices for most young aircraft have fallen 30 to 35 percent.

“While our survey suggests some incremental interest at these levels,” UBS said, “we think record high used available inventories will continue to overhang orders, pressure existing backlogs and force further production cuts out of the manufacturers.

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]