MEBAA Convention News

Jetcraft Sees Steady Growth for ME Preowned Market

 - December 10, 2018, 4:07 AM
The regional market for large-cabin jets like this Bombardier Global 5000 is expected to grow over the next 10 years, according to Jetcraft. The company’s annual market forecast is positive amid growing regional stability, but they add there’s no such thing as too much market information.

Global aircraft brokerage Jetcraft is displaying at MEBAA 2018 a locally owned 2010 Bombardier Global 5000, for sale at $16 million.

“That’s an asking price,” stressed Pascal Bachmann, Jetcraft’s senior v-p of sales, EMEA, adding, “In aviation, it’s never about only the price. For example, what kind of prebuy does the buyer want to do, and where, and how are they going to finance the purchase? All these factors are to be considered in determining what price makes sense for sellers and for buyers.”

But MEBAA visitors don’t have to be interested in buying this or any other aircraft to feel welcome at Jetcraft’s chalet (S7).

“We have an open door policy, so we’re happy to speak to anyone interested in aviation,” said Bachmann. “As I often say, ‘No contacts, no contracts.’ I believe in planting seeds for the future.”

With more than 500 transactions totaling over $10 billion concluded in the last decade, Jetcraft has proven adept at cultivating opportunities, and the Middle East appears ready for a harvest of transactions. “The market has been recovering,” said Bachmann. “It’s a good market in which sellers have options, not only buyers, as in past years.”

As of the third quarter, Middle East transactions represented 10 percent of Jetcraft’s year-to-date deals, in line with historical levels fluctuating between 8 and 12 percent, Bachmann said. “We see in the Middle East the same trend we see in other markets,” he added. “The tendency for people with smaller aircraft to want to upgrade to larger aircraft.”

In the recently released fourth edition of its annual Ten-Year Business Aviation Market Forecast, Jetcraft predicts regional growth trends will continue. In a sign of increasing normalcy in the turbulent area, Bachmann noted “a few” business jets have been purchased by Iraqi buyers this year.

With preowned activity heating up, “It’s more important than ever for a buyer or seller to seek professional advice so they can precisely know what terms make sense,” said Bachmann. “Information and market intelligence is half the battle.”