Month-over-month, projected demand for charter flights over the next 30 days is set to dip across all aircraft categories, according to the latest data from online charter portal Avinode. However, on both sides of the Atlantic and for all aircraft categories, demand levels were ahead of where they stood a year ago, with higher increases seen in North America.
The typical summer slowdown that the used market has become accustomed to seems to have taken a summer vacation. While worldwide inventory has ticked up slightly in response to seasonal variances, the inventory of 2000 and newer jets fell during the past couple of months. As the fleet has aged, the broader number of aircraft for sale has to be looked at closely. Consider that aircraft that are 25 years old or older account for more than one third of the market currently for sale, and these aircraft are often lumped in to the total figure to define the health of the market.
Buying a business aircraft is a complicated process with numerous factors to consider. Each year, AIN sister publication Business Jet Traveler publishes its annual Buyers’ Guide to provide all the key information and provide expert guidance.
Buyers continue to make their collective presence felt in the pre-owned market, pushing worldwide inventory to multiyear lows following a consistent contraction since last year’s NBAA Convention. Since that time, the market outflow of choices has exceeded the inflow and levels have dipped from 2,600 then to about 2,335 today, a level not seen since the summer of 2008. There are likely a number of factors affecting the depletion, including the perception of an improved U.S. economy, which has stimulated sales activity.
“Lower inventories and higher utilization suggest a recovery in new jet demand is approaching, though weak used pricing continues to weigh on the market for new jets,” J.P.Morgan North American Equity Research said in its latest business jet monthly report. According to the firm, pre-owned business jet inventory was flat last month on a sequential basis, though inventories are still “down nicely” year-over-year. Pre-owned pricing trends were also little changed.
The White House Fiscal Year 2015 budget, released today, yet again includes a $100-per-flight user fee for air traffic services, with exemptions for military, public and piston aircraft, as well as air ambulances, aircraft operating outside controlled airspace and Canada-to-Canada flights. According to the White House, “The revenues generated by the surcharge would be deposited into the Airport and Airway Trust Fund.
According to J.P.Morgan North America Equity Research’s latest monthly business jet report, data continues to show a “tentatively firming” market and the analyst believes that “2014 will be a key inflection year for business jet demand.” Its most recent data shows a continuation of recent trends: declining used inventory and growth of flight operations–both of which bode well for new aircraft demand–but declining pre-owned pricing.
It’s the question every trip support company asks: what is most important to the customer, cost or quality of service? UAS International Trip Support put the question to 250 pilots, executives and business jet operators across the globe in a double-blind survey to discover exactly how customers prioritized their trip support needs.
Fuel management software provider FuelerLinx is here at the NBAA show to announce the debut of sister company FBOlinx, which now allows FBOs to broadcast their fuel prices to their flight department customer base. As opposed to posting a uniform price online and waiting for customers to contact them, using the new system, FBOs can send confidential quotes directly to their customers. Prices can be exclusively tailored to meet a flight department’s fuel-use profile for a more streamlined and personalized process.
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