Window To Buy Discounted Bizjets Closing, Says Jetcraft
Business aircraft sales firm Jetcraft is “seeing clear evidence” of a return to a more stable pricing environment for large-cabin, long-range business jets. “There has been a significant reduction in the gap between buyer and seller price expectations, due in part to the reduction of distressed assets that flooded the market in late 2008,” noted company co-owner Jahid Fazal-Karim. “Additionally, the OEMs now have stronger order backlogs, which has reduced the pressure to discount prices on new aircraft.” The current recovery is being driven by emerging markets, including China, India, Russia and Africa, he added. “There has been speculation as to when prices of business aircraft would bottom out. After a significant drop across all categories beginning in late 2008, we have now seen an increase in prices of larger, longer-range, higher-end business aircraft,” according to Fazal-Karim. “Thus, we believe that the window of opportunity for discount buyers is now closing.” As for light and midsize jets, Jetcraft said prices are stable but still low. “However, shrinking inventories due to increased demand and economic recovery in North America, Europe and Latin America should stimulate values over the next 18 to 24 months,” said Fazal-Karim.