The flow of used aircraft to the market is slowing fairly dramatically, and some may wonder if that’s because all the aircraft for sale are already on the market. It might seem that way to some, but the more than 3,000 aircraft for sale right now–while not an insignificant number–represent only a fraction of the more than 16,500 jets currently in operation.
The Market for Lemons
Last year demand for pre-owned business jets and turboprops remained strong. High oil prices and financial turmoil, however, have applied the brakes and inventories are reaching new highs. Buyers are waiting for the deals to come to them, leaving airplanes languishing on the market longer and sellers accepting less just to get out of the market.
The thought that the market for new and used corporate aircraft as well as corporate aviation itself may very well be the innocent beneficiary of terrorism would be a tough reality to accept. Is it possible that the corporate jet, long looked at by industry detractors as a perk, or symbol of luxury, may henceforth be viewed as a necessity?