JetNet: Used Inventory Down, New Bizjet Buy Plans Up

 - September 6, 2017, 10:58 AM
JetNet IQ founder and director Rolland Vincent presented the most recent results from the company's third-quarter industry survey, which showed increasing optimism from its respondents, along with stronger new aircraft purchase plans. (Photo: Curt Epstein/AIN)

The preowned business jet inventory is at its lowest level in nearly a decade, according to data presented this morning at the seventh annual JetNet IQ Summit in New York City. According to Paul Cardarelli, the Utica, N.Y. data provider’s vice president of sales, of the 21,870 aircraft worldwide, 2,285 are currently on the market. That equates to 10.5 percent, a level not seen since November 2007. While pre-owned sales are up 6 percent year-over-year, Cardarelli believes the total number of available aircraft might be affected by owners who have decided to remain with their jets longer due to shrinking residual values.

Rolland Vincent, founder and director of JetNet IQ, presented results from its third-quarter industry survey, noting that nearly half of the respondents believe the business aviation market is past the low point in this recent cycle, with Europe showing the most optimism at more than 53 percent.

Among aircraft operators, those with midsize jets showed the most optimism (56 percent), while large jet operators were the most pessimistic, with 47.5 percent stating they believe the industry is climbing out of the trough. According to the survey, overall optimism is rebounding from a year ago, during the height of the contentious U.S. presidential election.

Likewise, the percentage of survey respondents who indicated a better than 60 percent probability of purchasing a new jet over the next year is the highest in the past two years. Of these, 57 percent indicated interest in medium jets, while nearly 40 percent said they would want a large-cabin jet.

Comments has noticed an increase of 20% in traffic and inquiries for the Aircraft for Sale section of the site in the past 2 months. Extended range aircraft seeing the largest increase in inquiries. Gulfstream G550, Global 5000 and Falcon 7X being the top viewed. Learjet 45XR have shown the most increase in the small to medium jet aircraft.

Aircraft brokerage firms are reporting a large increase in aircraft acquisition agreements indicating the market climate is changing. With specific aircraft markets showing smaller inventories we have also seen a small increase in prices.

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