The business jet market saw 2.4 percent of the worldwide fleet change hands via resale retail transactions in the second quarter, according to a quarterly pre-owned bizjet market update released this week by Amstat. This is higher than the 2.0-percent figure recorded in the first quarter.
A report released by JetNet on Tuesday shows that the number of pre-owned business jets and turboprops on the market last month fell by more than 7 percent on a year-over-year basis. But inventory as a percentage of in-service aircraft still remains high for business jets at 15.3 percent (2,674 aircraft), and while down 2.1 percent from May 2009 this still indicates a buyerís market for this category.
Recovery in the pre-owned business jet market “remains on track,” but the pickup in the new aircraft market is still “elusive,” JPMorgan noted in its latest business jet monthly report, issued late last week. “Used inventories continued to move downward, consistent with their path over the past 10 months,” said Joseph Nadol III, the firm’s chief aerospace analyst.
A recently released report from JetNet indicates that the pre-owned inventory of business jets and turboprops declined further last month, though the aviation information firm said the market still remains very much a buyer’s realm.
Online parts marketplace Rhobi (reinventing how online business integrates) “is the biggest technological advance for parts ordering and inventory since the fax machine,” asserts Steve Edwards, COO of Fort Smith, Ark.-based Rhobi. Edwards had a parts supply company and was unhappy with his options for software that would let his reps see up-to-date inventory, order parts and communicate with the company.
While a year ago it seemed as if buyers were beginning to emerge from harsh winter hibernation, in fact inventory was still a few months away from reaching its all-time peak. At the same juncture this year, we find inventory a couple of hundred aircraft below its 12-month moving average, yet still a couple of hundred above the pre-Lehman collapse figure.
IT directors concerned with the rising cost of parts and inventory management have another option available. Arinc Managed Services (AMS) is offering a new tool: mobilized asset management. AMS adds mobile data access and updating capabilities to Arinc’s asset management and inventory control solutions.
Heli-Mart (Booth No. 949) has nearly doubled its MD 500 parts inventory and its affiliate Phoenix Heliparts, a Part 145 repair station, has moved into a new 40,000-sq-ft facility in Mesa, Ariz. Phoenix Heliparts is part of the MD 500 Total Support Group, which includes Heli-Mart and California Aero Components.
Aircraft spares specialist AAR is offering a cost-effective parts inventory management program to relieve airlines’ cash flow headaches. “There’s no question airlines in this region are looking for ways to streamline their inventory cost structure,” said AAR’s vice president of sales for the Aviation Supply Chain Group in the Asia-Pacific region, Paul Richardson.
Customers will begin to see demonstrably better product support, including hard AOG (aircraft on ground) support, from American Eurocopter by the end of the second quarter of this year, according to a senior executive for the company.