This story is part of AIN's continuing coverage of the impact of the coronavirus on aviation.
Participants were mostly optimistic in a recent International Aircraft Dealers Association (IADA) members-only webinar on the current state of the preowned business aircraft market in the midst of the Covid-19 pandemic, according to the group of professional aircraft dealers and brokers. “May is generally better than April, and...we all anticipate June to even be significantly better than May. And so, the trends are all in the right direction,” said OS Partners executive v-p and IADA chairman Paul Kirby.
The ending of travel restrictions and lockdowns have had a positive effect on the industry, Kirby explained. At the same time, preowned aircraft sales prices “haven’t cratered any one specific market” and where they are lower, the price reductions are “thoughtful and strategic.” For large-cabin jets, prices have dropped but preowned inventory hasn’t increased as in past downturns, noted Leading Edge Aviation Solutions president Joe Carfagna Jr. “It seems that the bigger Gulfstreams, the Global product, they’re probably the poster children for what’s happened during this downturn where values are off about 15-20 percent,” he said. “Light jets, it seems like it’s more like 10 percent.”
Rolland Vincent, president of Rolland Vincent and Associates and director/creator of JetNet iQ, said transactions have “obviously slowed” but added that financing for aircraft deals is still available and affordable. This year will be tough for business aircraft OEMs with factory outputs down 25 to 30 points but “this will be the low point in their continued outlook,” he said. Young, preowned inventory for brokers and dealers continue to sell, Vincent added. “I think it’s about 9 percent of inventory out there that’s younger,” he said. “So that’ll move pretty quickly.”