Buying a business aircraft is a complicated process with numerous factors to consider. Each year, AIN sister publication Business Jet Traveler publishes its annual Buyers’ Guide to provide all the key information and provide expert guidance.
Buyers continue to make their collective presence felt in the pre-owned market, pushing worldwide inventory to multiyear lows following a consistent contraction since last year’s NBAA Convention. Since that time, the market outflow of choices has exceeded the inflow and levels have dipped from 2,600 then to about 2,335 today, a level not seen since the summer of 2008. There are likely a number of factors affecting the depletion, including the perception of an improved U.S. economy, which has stimulated sales activity.
In an op-ed piece, NBAA president and CEO Ed Bolen challenged the Washington Examiner’s “mischaracterization” of long-standing tax deprecation policies on the purchase of business aircraft as a “loophole.” “Some in Washington are trying to score political points by characterizing business aviation as a convenience, or even a luxury, rather than a necessary tool for competitiveness,” Bolen said. “In fact, for businesses, an aircraft is as much a necessity as a computer.
“Lower inventories and higher utilization suggest a recovery in new jet demand is approaching, though weak used pricing continues to weigh on the market for new jets,” J.P.Morgan North American Equity Research said in its latest business jet monthly report. According to the firm, pre-owned business jet inventory was flat last month on a sequential basis, though inventories are still “down nicely” year-over-year. Pre-owned pricing trends were also little changed.
According to J.P.Morgan North America Equity Research’s latest monthly business jet report, data continues to show a “tentatively firming” market and the analyst believes that “2014 will be a key inflection year for business jet demand.” Its most recent data shows a continuation of recent trends: declining used inventory and growth of flight operations–both of which bode well for new aircraft demand–but declining pre-owned pricing.
It’s the question every trip support company asks: what is most important to the customer, cost or quality of service? UAS International Trip Support put the question to 250 pilots, executives and business jet operators across the globe in a double-blind survey to discover exactly how customers prioritized their trip support needs.
Fuel management software provider FuelerLinx is here at the NBAA show to announce the debut of sister company FBOlinx, which now allows FBOs to broadcast their fuel prices to their flight department customer base. As opposed to posting a uniform price online and waiting for customers to contact them, using the new system, FBOs can send confidential quotes directly to their customers. Prices can be exclusively tailored to meet a flight department’s fuel-use profile for a more streamlined and personalized process.
Fuel management software provider Fuelerlinx has spawned a sister company: FBOlinx. The new company allows FBOs to broadcast their fuel prices to their flight department customer base. Instead of posting a uniform price online and waiting for customers to contact them, FBOs using the new system can send confidential quotes directly to customers. Prices can be tailored to meet a flight department’s fuel-use profile for a more streamlined and personalized process.
The typical summer build in inventory is being held at bay perhaps by buyers’ sense that values have arrived at such attractive, even laughably low, levels that it doesn’t make sense not to buy. Some would-be sellers may be applying similar logic and removing their aircraft from the market as a result of those same low levels. Regardless of the reason, inventory is holding steady at a time when it often increases.
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