As the Great Recession moves into its sixth year, the market for used business aircraft remains something of a quagmire, with some models still searching for a price bottom. But there are bright spots where values have stabilized, and inventory overall is headed in the right direction.
For the first time since the used jet market began to unravel, inventory sits below the level of October 2008. Year-over-year for the past four years, more inventory has been departing the market than has been arriving onto the market and this year could prove a continuation of that trend, with inventory already below last year’s 12-month moving average as the market enters what is historically the most active quarter for aircraft sales.
“Caution” is the word when it comes to demand for new business jets, according to JPMorgan North America Equity’s latest business jet monthly report, issued today. Though most business jet manufacturers continue to see weak demand at the lighter end of the market and better prospects at the higher end, JPMorgan is concerned about Embraer’s recent comments about “incremental softness at the high end.”
The pre-owned business jet market showed “incremental weakness” last month, according to the latest business jet monthly report from J.P.Morgan North American Equity Research. “A single month does not make a trend, but May used-market data, including a sequential increase in inventory by 0.4 percentage points and 3.6-percent decline in pricing not seen since the first half of 2009, suggest that business jet demand will remain weak,” it said.
As we approach the halfway mark of the year, the used jet market continues to show improvement in terms of sales, but at the detriment (if you’re a seller) to price. Every day for the past several years, pricing has become more and more attractive to buyers. In retrospect, it seems that no seller left any money on the table when they rolled out of their previous aircraft and turned the keys over to a new owner. That said, buyers are not cloistered away and continue to buy actively, taking advantage of values no one could have ever predicted.
Pre-owned business jet and turboprop inventories continued their downward trajectory last month, according to data released yesterday by business aviation market information firm JetNet. But the overall picture of the pre-owned market remains mixed at best.
Inventories of pre-owned business jets and turboprops continued to edge downward in March, according to the latest figures from business aviation market information firm JetNet. While turboprops are a seller’s market, for business jets “it’s still a buyer’s market, with ample inventory at near-low average asking prices,” the company said.
The number of pre-owned business jets for sale has hovered around the 2,500 level over the past several years since climbing from about 1,600 before 2008, according to business aviation market information firm JetNet. While pre-owned business jet inventory is now receding as a percent of the in-service fleet, it is doing so only because of new aircraft entering service, the company said.
Inventories of business jets, turboprops and turbine helicopters continued to deflate in January, business aviation market information firm JetNet said today in its latest market update.
According to JetNet, pre-owned business jet inventory in January landed at 13.2 percent of the in-service fleet, down 0.5 points from a year ago. Retail business jet sales, however, fell by 1.8 percent year-over-year, “only the second time since January 2009 that it showed a decline in full retail sale transactions,” JetNet said.
Air Comm Corporation (Booth N5015) announced Monday that the thermal management and environmental systems company recently selected Component Control’s Quantum Control logistics software solution to manage its manufacturing, business systems and inventory control operations.
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