Business aircraft sales firm Jetcraft is “seeing clear evidence” of a return to a more stable pricing environment for large-cabin, long-range business jets. “There has been a significant reduction in the gap between buyer and seller price expectations, due in part to the reduction of distressed assets that flooded the market in late 2008,” noted company co-owner Jahid Fazal-Karim.
The current pre-owned aircraft market can be defined as consistent as inventory continues to inch down, month-after-month. Many people regard this consistency to be welcome news, considering where the market was a couple of years ago.
There is “uneven progress” toward recovery, JPMorgan said in its latest business jet market update.
Before the financial crisis in the days of the money-no-object approach to business aviation, the attitude of some FBOs when asked what handling services would cost was a rather snooty, “If you need to ask the price, it’s probably not for you, sir.” Preposterously inflated prices and widespread inconsistency and lack of transparency were all too common in the industry.
Attractive pricing persists on many popular models despite a continued tightening of inventory to its lowest level since peaking less than two years ago.
The business aviation industry has now passed rock-bottom in what has been a cyclical dip of historic proportions, but the pace and extent of its recovery remain far from clear. This was the main area of consensus among delegates to the International Corporate Jet & Helicopter Finance conference held in London in mid-February.
Eclipse 500 air-taxi firm Linear Air on Friday announced new benefits for frequent-flier customers from Boston Hanscom Field and Westchester County Airport in White Plains, N.Y. The Concord, Mass.-based charter operator’s new “platinum service” program will be offered at no charge to customers who fly more than five trips from these airports.
The buying momentum that had been building during the fourth quarter of last year seems to be spilling into this year, as evidenced by a move lower in inventory to levels not seen in more than two years.
CRS Jet Spares reports a 25-percent decrease in customer additional billings (billbacks) over the past 18 months as a result of its Option 2 pricing program.
When an operator needs a part, an exchange transaction is the common method of handling the purchase. The problem with that type of transaction is there’s the chance of a billback to the operator at a later date based upon the actual condition of the core.
The Hiller Group (Booth No. 6244), which already supplies fuel at more than 600 U.S. airports, plans "in the near term to expand into Canada and look at Europe as well." That's according to company president and CEO Martin Hiller, who made the comment during a press conference yesterday.