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.
Advocacy efforts by NBAA members, the Connecticut Legislative Aviation Caucus and the Connecticut Business Aviation Group to fight a personal property tax on all aircraft based in the state were successful. Last month, the House and Senate in Connecticut passed a budget that does not contain “the potentially devastating tax increases for aviation that were proposed in earlier versions,” NBAA said.
Offshore helicopter services company Bristow announced increased earnings and revenues for its fiscal year ended March 31 of $121.3 million and $1.233 billion, respectively. The company reported that revenue increased across all primary business units
“Fiscal 2011 turned out to be a strong year, distinguished by record revenue, operating income and net income,” said CEO Bill Chiles.
The current pre-owned aircraft market can be defined as consistent as inventory continues to inch down, month-after-month. Many people regard this consistency to be welcome news, considering where the market was a couple of years ago.
There is “uneven progress” toward recovery, JPMorgan said in its latest business jet market update.
Russian Helicopters postponed its offering of “ordinary shares and global depositary receipts” last month. Board member Andrei Reus said he believed “market participants will benefit from more time to reflect upon the true value and growth potential of the business.” When announced in April, the total size of the IPO was expected to exceed $500 million.
Imports of business aircraft into the UK have ground to a halt since tax authorities there scrapped its zero-VAT rating in January, according to Gama Aviation CEO Marwan Khalek. The change was forced on the UK by the European Commission with the intent of harmonizing VAT rules for aircraft sales, but the outcome has been a confusing muddle in which no one seems sure how VAT should now be applied.
“We believe the recent improvement in our survey and many of the other key indicators that we monitor, including increased flight activity and lower used inventories, are reflective of an early-stage recovery,” UBS Investment Research U.S. aerospace and defense analyst David Strauss wrote in his firm’s latest monthly business jet market report.
On March 28, David Sokol resigned from his job as chairman of several Berkshire Hathaway-owned companies, including fractional-share provider NetJets. NetJets president Jordan Hansell took over as chairman and CEO.