For the first time since the Great Recession, business aircraft brokers “are having to find aircraft for buyers, rather than having to find buyers for aircraft,” Citi Research said today after the investment firm held a roundtable discussion with a group of these brokers on Friday. “The overall sentiment was positive as brokers are busy with high transaction volumes with the potential for pricing to broadly improve over the next year,” adding that it already has some in “some pockets.”
Brokers told Citi that the key determinant to sale is aircraft attractiveness, including age and cockpit/interior configuration. “[Attractive] aircraft aren’t available for long,” said Citi Research U.S. aerospace and defense senior equity analyst Jonathan Raviv.
North America is especially strong, comprising about 80 percent of preowned aircraft sales, above the typical 60 to 70 percent average, he noted. “There’s modest wariness that it is too North American weighted and a suggestion that [aircraft manufacturers] probably want to see broader geographic improvements before raising [new business jet] production,” Raviv concluded.