In its latest monthly business jet market report, JPMorgan North American Equity Research said demand for new business jets is “still in the doldrums.” As proof, the firm said Cessna Citations aren’t even 70 percent sold out this year, while Embraer “has seen little pickup in demand” for its executive jets.
While UBS Investment Research’s March business jet index reflects a stable market, other indictors showed that the business aviation market recovery has stalled a bit. According to a market report released yesterday by the investment firm, pre-owned business jet inventories were roughly unchanged in February, following declines in each of the prior six months.
Last month showed further evidence of the “gradual” business jet recovery that has been under way for the past few months, including a shrinking pre-owned inventory and “some positive signals from the new market,” JPMorgan Global Equity Research said this week in its monthly business jet update.
Thom Harrow, former president of Volo Aviation, last year formed a new company called Airport Property Partners (APP) and in December purchased four Volo FBOs from Merrill Lynch. The four FBOs–in Fort Pierce and Sarasota, Fla.; Manassas, Va.; and Hayward, Calif.–will be rebranded as APP Jet Centers. Harrow expects new signage for the facilities to be in place by the end of next month.
Thom Harrow, former president of Volo Aviation, last year formed a new company called Airport Property Partners (APP) and in December purchased four Volo FBOs from Merrill Lynch. The four FBOs–in Fort Pierce and Sarasota, Fla.; Manassas, Va.; and Hayward, Calif.–will be rebranded as APP Jet Centers. Harrow expects new signage for the facilities to be in place by the end of this month.
According to UBS Investment Research’s latest business jet update, flight activity in November was roughly unchanged from the same period in 2008, stemming the year-over-year declines seen in each of the previous 24 months. On a seasonally adjusted basis, cycles were roughly 1 percent higher from October and are now 18 percent above their March low, though still 23 percent below the 2007 peak.
UBS Investment Research’s latest monthly business jet market report, released yesterday, shows that business condition indicators have stabilized and in some cases are moving higher. Its November business jet market index came in at 45, some 5 percent higher than UBS’s prior survey and the seventh straight move higher. However, the index has not yet crossed the 50 threshold indicative of actual improvement in market conditions.
JPMorgan Global Equity Research yesterday issued its December Business Jet Monthly report, which notes that November’s used business jet inventory saw a modest decline, marking the fourth consecutive month of shrinkage in the number of active aircraft available for sale. The midsize class saw the biggest inventory decrease, while the number of available light jets remained relatively unchanged from the previous month.
In its latest Business Jet Update released yesterday, UBS Investment Research predicts 8- to 10-percent growth in bizjet flight activity for the coming year, with a 12- to 14-percent increase in movements for the first half of next year, based on recent trends.
JPMorgan’s latest business jet monthly report indicates that October was another month of modest improvement in aircraft demand and utilization. Further, pre-owned business jet inventories fell for the third straight month, “and the peak for this cycle now seems more firmly behind us, but they remain at very high absolute levels,” noted aerospace analyst Joseph Nadol III.