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.
For more than a year, recovery mode in the pre-owned aircraft market has meant more an outflow than intake. Although the number of choices has decreased, there has been no corresponding increase in prices, making it extremely attractive for buyers. Currently, purchasing an aircraft is more about operating cost than it is about acquisition costs.
Sixteen FBOs are joined together at the Eastern Aviation Fuels NBAA exhibit this year (Booth No. 6403) and all are participating in the new Shell Aviation AeroClass loyalty program. Eastern Aviation Fuels markets Shell-branded aviation fuels throughout the U.S.<o:p></o:p>
The eye-popping total of 2,750 pre-owned aircraft for sale today is a lot based on historical standards, but it is well below the peak reached a little more than a year ago. The broker community and OEMs monitor the total number of aircraft for sale because it is an important measurement on which to gauge the health of the used aircraft market, but when you scratch beneath the surface you realize that the sky is not falling.
“Elevated used inventory, attractive used pricing and macro uncertainty continue to hold down demand for new business jets,” JPMorgan Equity Research said in its latest business jet monthly report.
Despite teetering over the abyss of economic collapse and having to overcome negative public perception surrounding corporate jet ownership, the used aircraft market has battled back, slowly and perhaps surprisingly consistently, chipping away at a glutted market. Month after month since late 2008, buyers have stepped into the market and pared back the numbers to arrive at the lowest inventory level in a year-and-a-half.