“Available business jet inventories look finally to be stabilizing,” UBS Investment Research noted in its recently released business jet update, though pre-owned inventory remains at record-high levels at 18 percent of the in-service fleet.
Pre-owned business jet inventories are stabilizing, but recovery of the business aircraft industry “still looks far off,” according to a recently released report from J.P. Morgan Research. The investment research firm said pre-owned inventories remained flat last month at 14.4 percent, marking the second consecutive month of status quo after rising for 14 months.
UBS Investment Research’s latest business jet update suggests that the pre-owned business jet market might be at or near the bottom. According to UBS researcher David Strauss, listings of used business jets slowed to a 1-percent month-over-month increase in March, although they are still 63 percent higher than prior-year levels.
UBS Investment Research’s business jet update released on Tuesday afternoon suggests that the pre-owned business jet market might be at or near the bottom. The firm said that this market segment is a leading indicator for the new business jet market.
Business aviation investor consultant Brian Foley Associates is seeing signs that the pre-owned business jet market could bottom out as early as this summer. “That’s not to say there’ll be an immediate decrease, just that [pre-owned inventory] won’t get much higher,” noted company president Brian Foley.
Business aviation investor consultancy Brian Foley Associates is seeing signs that the pre-owned business jet market could bottom out as early as this summer. “That’s not to say there’ll be an immediate decrease, just that it won’t get much higher,” noted company president Brian Foley.
GE Aviation has signed an exclusive distributor agreement with Aviall Services that covers unique spare parts of the GE CF34-3 for the remaining life of the engine.
Two separate analyst reports issued this week by UBS Investment Research and Brian Foley and Associates note that business jet order backlogs are at increased risk due to rising pre-owned inventory and recession. According to UBS, pre-owned bizjet inventory now stands at 16 percent of the in-service fleet, climbing 2 percent last month alone and 65 percent above prior-year levels.
Investment research by UBS published this month shows a marked increase in both used business aircraft available for sale and in delivery positions for sale. The investment bank’s conclusion is this: “We believe the deterioration…and decline in flight activity presage what we think will be a significant slowing in new order activity.
Aviation parts supplier Turbine Engine Consultants (TECI) has announced the availability of a consignment program called Excess Inventory Management (EIM). Joplin, Mo.-based TECI (Booth No. 5321) owns a 75,000-sq-ft climate-controlled warehouse for EIM inventory. The facility includes multiple loading docks and makes use of a variety of shipping methods, the company said. Founded in 1991, TECI