“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.
Fuel management software provider Fuelerlinx has spawned a sister company: FBOlinx. The new company allows FBOs to broadcast their fuel prices to their flight department customer base. Instead of posting a uniform price online and waiting for customers to contact them, FBOs using the new system can send confidential quotes directly to customers. Prices can be tailored to meet a flight department’s fuel-use profile for a more streamlined and personalized process.
The typical summer build in inventory is being held at bay perhaps by buyers’ sense that values have arrived at such attractive, even laughably low, levels that it doesn’t make sense not to buy. Some would-be sellers may be applying similar logic and removing their aircraft from the market as a result of those same low levels. Regardless of the reason, inventory is holding steady at a time when it often increases.
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.
Dassault Falcon is in the process of reducing the price on more than 18,500 parts. According to the OEM, this campaign complements price reductions on more than 14,000 parts last year. A spokesman for the company said that until recently the focus has been on ensuring the ready availability and timely shipment of parts.
- Page 1