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.
Dassault Falcon has decided to embark on what it calls a completely different approach to pricing in an effort to counter customer perceptions that spare parts cost too much. The new approach, called “Rightsized Pricing,” takes into account customer expectations of the worth of a particular part rather than basing the price strictly on manufacturing costs.
With one quarter of the year in the rear-view mirror, the pre-owned market enters one of its historically busier quarters, and with some key economic indicators showing improvement, this year may be setting up to be busier than many recent ones. So many aircraft values have done nothing but fall for nearly five years. Now some are showing signs of resisting that perennial trend. A number of segments continue to edge ever closer toward right pricing, but others have fallen so far that they are beginning to move quickly.
Newly formatted data from online charter portal Avinode gives a clearer impression of the fluctuations in charter aircraft demand and pricing.
Charter booking portal Stratajet is signing an initial group of aircraft operators for system tests that it hopes will lead to a full launch in this year’s second quarter. The company has dropped earlier plans to charge operators to list aircraft in its Stratafleet database and is guaranteeing fixed, all-inclusive charter rates to passengers.
How well do you know the market? When the market goes up, everyone knows it and accepts it, and prices rise; when it falls, everyone recognizes the need to adjust. But if you’re a buyer or a seller, how good is your information? Right now the market is in what could be a transitional phase, making it a challenge to decipher its signals, no matter what side of the fence you’re on. We recently heard of one buyer shelling out seven figures more than he could have paid, had he known virtually anything about the market.
As the cost of jet-A creeps ever upwards, the price last month at several Washington, D.C.-area airport FBOs hovered near $9 per gallon. Signature Flight Support, the lone provider at Reagan National Airport, posted a pump price of $9.18 a gallon, which was still less than the $9.24 per gallon it listed in early March 2011.