UBS Investment Research’s September business jet market index came in at 43, 16-percent higher than its previous survey in July and moved upward for the sixth consecutive month, “indicative of continued slowing in the rate of market deterioration.” However, UBS analyst David Strauss noted, the index continues to be “weighed down” by weak pricing and record-high inventory levels of pre-owned business jets, in addition to not yet crossing the th
Market conditions for pre-owned rotorcraft are “below normal levels and falling,” according to a monthly rotorcraft survey published last week by UBS Investment Research. The firm’s latest rotorcraft composite index, which measures overall business conditions, came in at 40, some 5 percent higher than UBS’s previous survey but still 10 points below conditions that would show expansion.
Business jet valuations for pre-mid-1990 models are in “dire straits” and likely will never recover, Conklin & de Decker vice president and co-owner David Wyndham said in the company’s latest e-newsletter.
UBS Investment Research’s latest Business Jet Market Index, released this morning, shows the fifth consecutive move higher, “indicative of a continuing slowing in the rate of market deterioration.” The index, which measures the change in a group of business aviation professionals’ views from previous UBS index surveys, came in at 37, slightly higher than the 35 reported in May and greatly above the record-low of 13 in November.
The pre-owned business jet market appears to have bottomed out last month, according to UBS Investment Research’s latest business jet update, released this morning. “Available business jet inventories stepped down 2 percent in June after sequential increases in each of the prior 18 months,” UBS aerospace and aviation analyst David Strauss noted in the report.
In an economy that has ravaged aviation, one stable segment is the insurance industry, but change is coming. “Nobody knows what [the future is] going to look like,” an industry expert told AIN.
UBS Investment Research’s business jet survey released on Tuesday shows that the market index increased to 35 this month, the fourth consecutive move higher, which UBS analyst David Strauss said is “indicative of a much slower pace of deterioration.” The investment researcher said the business jet index is still weighed down heavily by weak pricing and high inventories since it hasn’t yet crossed the 50 mark indicative of incremental improveme
“The pre-owned business jet market isn’t tanking or upside down; it just returned to normalcy,” noted Dennis Rousseau, a 25-year business aviation veteran and president of AircraftPost, an online market valuation service for midsize and large-cabin business jet owners.
Sources for financing of corporate aircraft purchases may be harder to find this year than last, but Toennies von Limburg, director of international sales with Bank of America Corporate Aircraft Finance (Booth No. 394), said there is value to be had in what has turned rapidly from a buyers’ to a sellers’ market.
Directional Capital, an investment firm led by Flight Options chairman and founder Kenn Ricci, private-equity firm Resilience Capital Partners and “key members” of the Flight Options management team, has made an additional investment in fractional provider Flight Options. HIG Capital, which acquired the Cleveland-based company in November 2007, remains a minority investor.