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.
Bombardier Aerospace’s Dubai parts depot has moved to a new facility to enhance its aftermarket support for operators flying to Europe, the Middle East and Africa (EMEA). It allows greater inventory capacity and, as part of a continuing priority to improve competitiveness, and Bombardier says it has reduced prices on many rotable exchanges and a large number of proprietary and non-proprietary new parts.
Avfuel has bolstered its network of more than 600 branded FBOs with the addition of four new dealers: London City Airport Centre at London City Airport; Minot Aero Center in Minot, N.D.; Million Air Burbank in California; and CYHU H-18 in Montreal will now all offer the full range of Avfuel products, including contract fuel, the Avtrip rewards program and Avfuel’s Avplan flight support and trip planning services.