Business jet demand has not recovered in line with corporate profits as it has in the past. J.P. Morgan aerospace analyst Joseph Nadol III attributes the sluggishness to “the stigma attached to bizjets during the recent recession and a focus on cost cutting among corporate customers. We estimate that 2013 U.S. corporate profits were up about 50 percent from the 2008 trough, whereas bizjet deliveries have yet to turn up decisively.”
Preliminary data suggests second-quarter results for business jet deliveries “will not be impressive,” according to J.P. Morgan North American Equity’s latest business jet monthly update. While its analysts note there are aircraft still missing from the database used to track deliveries, “Preliminary indications are that deliveries will fall short of estimates, with the possible exception of Gulfstream,” noted J.P. Morgan lead aerospace analyst Joseph Nadol III.
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.
Dynamic Systems is offering what it promotes as a low-cost tracking system for MROs and FBOs using the latest bar code technology. Total Track System tracks tools, maintenance, equipment, work orders, inventory, capital assets and job costing. Bar-code data collection has proved to be the most accurate and efficient method of tracking or counting items.
Fresh Jets formally launched its online live empty-leg platform in March, offering a new way for charter users to be introduced to charter operators. Instead of just listing inventory that may or may not exist, Fresh Jets is a software system that charter operators and corporate travel departments can use to take advantage of empty legs.
Pre-owned business jet and turboprop inventory as a percentage of in-service aircraft continued to fall in March, though pricing has yet to find a floor, according to data released yesterday by aviation services firm JetNet. Inventory of used business jets fell 1 percent year-over-year, to 12.1 percent, the third lowest since 2005, JetNet said. Pre-owned turboprop inventory barely managed a decrease, falling just 0.1 percent to 7.7 percent from March 2013.
Dassault Falcon saw greatly improved sales in China last year, and this year is shaping up to be strong as well, it said today at ABACE 2014. The company attributes this success in China to its investment in product support, marketing and customer service. Its customer service efforts are managed through Dassault Falcon’s wholly owned foreign entity, which is staffed by Chinese-speaking employees.
AAR is acquiring inventory and customer contracts from Sabena Technics Brussels. Responsibilities include power-by-the-hour support for 13 customers, which AAR’s Aviation Supply Chain division will handle from its new facility at Brussels Airport. “The move establishes a rotable pool operation covering the A330, A320 and 737NG for current and future customers,” said John Holmes, group vice president of supply chain for AAR. The 24/7 facility will support AOG and other parts requirements for AAR customers in Europe, the Middle East and Africa.
“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.
CHC Helicopters division Heli-One (Booth No. 1804), a global provider of repair and overhaul services for helicopters, now offers overhauled aircraft components and spare parts to other helicopter operators via new customer portals on its website (www.heli-one.com).
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