The typical summer build in inventory is being held at bay perhaps by buyers’ sense that values have arrived at such attractive, even laughably low, levels that it doesn’t make sense not to buy. Some would-be sellers may be applying similar logic and removing their aircraft from the market as a result of those same low levels. Regardless of the reason, inventory is holding steady at a time when it often increases.
The pre-owned business jet market showed “incremental weakness” last month, according to the latest business jet monthly report from J.P.Morgan North American Equity Research. “A single month does not make a trend, but May used-market data, including a sequential increase in inventory by 0.4 percentage points and 3.6-percent decline in pricing not seen since the first half of 2009, suggest that business jet demand will remain weak,” it said.
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.
Pre-owned business jet and turboprop inventories continued their downward trajectory last month, according to data released yesterday by business aviation market information firm JetNet. But the overall picture of the pre-owned market remains mixed at best.
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.
World Fuel Services has expanded membership in the FlyBuys Rewards Program to the European business and general aviation market. As such, pilots, flight departments, crewmembers, schedulers and dispatchers in Europe can join the FlyBuys Rewards program to earn points and redeem them for rewards. In addition, participating World Fuel Services network FBOs and merchants in Europe can offer FlyBuys Rewards points as incentives. Rewards are earned when a FlyBuys member uses a linked Avcard, WFS Contract Fuel or BaseOps account.
Air charter marketplace specialist Avinode (Booth 1047) has launched Avinode Trip Manager, a new “sales management system” designed for air charter brokers. “It gives members the ability to manage all sales-related tasks–not only flight sourcing–in a completely integrated online environment,” said Oliver King, managing director of the Gothenburg, Sweden-based company.
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.
Inventories of pre-owned business jets and turboprops continued to edge downward in March, according to the latest figures from business aviation market information firm JetNet. While turboprops are a seller’s market, for business jets “it’s still a buyer’s market, with ample inventory at near-low average asking prices,” the company said.
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.