The typical summer slowdown that the used market has become accustomed to seems to have taken a summer vacation. While worldwide inventory has ticked up slightly in response to seasonal variances, the inventory of 2000 and newer jets fell during the past couple of months. As the fleet has aged, the broader number of aircraft for sale has to be looked at closely. Consider that aircraft that are 25 years old or older account for more than one third of the market currently for sale, and these aircraft are often lumped in to the total figure to define the health of the market.
Business jet demand has not recovered in line with corporate profits as it has in the past. J.P. Morgan aerospace analyst Joseph Nadol III attributes the sluggishness to “the stigma attached to bizjets during the recent recession and a focus on cost cutting among corporate customers. We estimate that 2013 U.S. corporate profits were up about 50 percent from the 2008 trough, whereas bizjet deliveries have yet to turn up decisively.”
World Fuel Services’ Air Elite Network launched a new loyalty reward program, Diamond Dividends, this week at LABACE 2014. The program awards members a total of 10,000 FlyBuys Rewards bonus points with a qualified purchase at any five different Air Elite FBOs. Qualifying purchases are chronicled on an Air Elite Diamond Dividends Card, available at any of the 31 Air Elite locations.
Buying a business aircraft is a complicated process with numerous factors to consider. Each year, AIN sister publication Business Jet Traveler publishes its annual Buyers’ Guide to provide all the key information and provide expert guidance.
Preliminary data suggests second-quarter results for business jet deliveries “will not be impressive,” according to J.P. Morgan North American Equity’s latest business jet monthly update. While its analysts note there are aircraft still missing from the database used to track deliveries, “Preliminary indications are that deliveries will fall short of estimates, with the possible exception of Gulfstream,” noted J.P. Morgan lead aerospace analyst Joseph Nadol III.
Gulfstream expanded its safety management system (SMS) to include the sales and marketing department, making the company one of the first business jet manufacturers to implement an SMS for a non-manufacturing or service organization. “Having a standard and consistent approach to managing risks helps us enhance what we’re already doing: delivering and servicing the safest possible aircraft for our customers,” said Gulfstream senior vice president of worldwide sales and marketing Scott Neal.
Buyers continue to make their collective presence felt in the pre-owned market, pushing worldwide inventory to multiyear lows following a consistent contraction since last year’s NBAA Convention. Since that time, the market outflow of choices has exceeded the inflow and levels have dipped from 2,600 then to about 2,335 today, a level not seen since the summer of 2008. There are likely a number of factors affecting the depletion, including the perception of an improved U.S. economy, which has stimulated sales activity.
Dynamic Systems is offering what it promotes as a low-cost tracking system for MROs and FBOs using the latest bar code technology. Total Track System tracks tools, maintenance, equipment, work orders, inventory, capital assets and job costing. Bar-code data collection has proved to be the most accurate and efficient method of tracking or counting items.
Columbus, Ohio-based Spirit Aeronautics announced Jody Jaraczewski has joined the company as the director of sales and marketing. Jaraczewski brings more than 14 years of sales experience and an understanding of how to drive revenue within sales while providing exceptional customer service, according to Spirit. In his new role, Jaraczewski will be responsible for creating and implementing sales strategies designed to help the company achieve its aviation service objectives worldwide.
Fresh Jets formally launched its online live empty-leg platform in March, offering a new way for charter users to be introduced to charter operators. Instead of just listing inventory that may or may not exist, Fresh Jets is a software system that charter operators and corporate travel departments can use to take advantage of empty legs.
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