A first-quarter 2021 survey of brokers by the International Association of Aircraft Dealers (IADA) released yesterday shows increasing optimism and improving expectations for sales in the preowned business aviation market over the next six months. While gains in transactions are expected in every category and size of business turboprops and jets in the next six months, the survey indicated they are expected to be strongest among light and midsize business jets.
Brokers were asked to rate their expectations for overall conditions on a floating scale from “worst ever” to “best ever” for sales, finance, and leasing in the next six months. For sales, expectations stayed at “better than normal” between the fourth quarter of 2020 and the first quarter of this year. Brokers are feeling better about the aircraft finance market, raising their expectations from “normal” to "better than normal," while projections for the aircraft leasing market remained largely unchanged at "normal" during the same period.
In conjunction with the survey, IADA also reported first-quarter results from its members, including the closing of 211 aircraft transactions and the execution of 119 acquisition agreements. Also during the period, IADA members had 246 aircraft under contract. Similar data from first-quarter 2020 were unavailable for comparison.
“This IADA data clearly indicates that the aviation industry has proven its resilience through the economic fluctuations brought about by the pandemic, and is now on a trajectory for continued success,” said IADA executive director Wayne Starling.