Young Used Bizjet Inventory Falls To Pre-crisis Levels

 - September 26, 2017, 12:14 AM

Available preowned business jet inventory last month was 7 percent lower year-over-year and now represent 10.3 percent of the installed base, the lowest since before the financial crisis, according to data from UBS Global Research.

At 5 percent of installed base, inventory of zero- to five-year-old preowned business jets fell 4 percent sequentially and 25 percent lower year over year. Meanwhile, inventory of six- to 10-year-old preowned jets also decreased by 4 percent and shrunk 10 percent from a year ago, now standing at 10 percent of the installed base. Midsize jets improved the most in the former segment, while long-range jets did best in the latter category.

“We believe young used inventories are approaching healthy levels, which we estimate at less than 5 percent for zero- to five-year and less than 10 percent for six- to 10-year,” UBS aerospace researchers David Strauss and Darryl Genovesi said. “Of young aircraft (zero to 10 years old), inventory levels are lowest for Bombardier/Gulfstream at 6 percent and 4 percent for zero to five years old.”

According to UBS, North America appears to be the best with 7 percent of the young business jet fleet available, while Europe is highest at 10 percent. Among young aircraft, small and large-cabin zero to five-year-old inventory has declined to roughly 6 percent of installed base, with midsize jets down to 4 percent, UBS said. Among large-cabin jets, “pricing appears to have stabilized for the Gulfstream G550 and G650/650ER.”