The good news is that the bad news seems to have subsided for the time being and business aviation’s recent negative publicity served to make aircraft that much more affordable.
Supply chain management
Available business jet inventories dropped 2 percent last month, the second sequential decline in three months following 18 months of consecutive increases, according to a business jet report issued by UBS Investment Research this afternoon. Despite the decline, available inventories are still at 17 percent of the in-service fleet, some 36 percent higher than August last year.
The World Customs Organization has given Lufthansa Technik authorized economic operator (AEO) status based upon the company’s established customs procedures and security regulations.
Inventories of used turbine helicopters have been building since the middle of last year, “but now appear to be stabilizing, albeit at record-high levels,” UBS Investment Research noted in its first turbine helicopter inventory report. According to UBS aerospace/aviation analyst David Strauss, about 1,010 helicopters were on the market at the end of last month, including 974 used models and 36 new delivery positions.
Global parts supplier STAG (Specialist Technologies Aerospace Group) is on hand at the Paris Air Show (Hall 2B Stand E101) to explain its supply chain optimization program. The UK-based company, which has SpecTech divisions in the U.S.
Business aviation investor consultant Brian Foley Associates is seeing signs that the pre-owned business jet market could bottom out as early as this summer. “That’s not to say there’ll be an immediate decrease, just that [pre-owned inventory] won’t get much higher,” noted company president Brian Foley.
Business aviation investor consultancy Brian Foley Associates is seeing signs that the pre-owned business jet market could bottom out as early as this summer. “That’s not to say there’ll be an immediate decrease, just that it won’t get much higher,” noted company president Brian Foley.
Two separate analyst reports issued this week by UBS Investment Research and Brian Foley and Associates note that business jet order backlogs are at increased risk due to rising pre-owned inventory and recession. According to UBS, pre-owned bizjet inventory now stands at 16 percent of the in-service fleet, climbing 2 percent last month alone and 65 percent above prior-year levels.
San Antonio, Texas-based M7 Aerospace (Booth No. 740), a group of aerospace-related business units created from the assets of the former Fairchild Aviation Corp., recently expanded its role as an outsourcing provider through its supply-chain management organization.
BBA Aviation engine repair and overhaul companies Dallas Airmotive, Premier Turbines and International Turbine Service have been granted Importer Self Assessment (ISA) certification by U.S. Customs and Border Protection (CBP), a branch of the Department of Homeland Security.