“While the pre-owned business aircraft market continues to show improvements, all indicators have been slow to recover in the first nine months of 2011,” industry research firm JetNet said in a market report released on Friday.
Supply chain management
ECAS, a stocking distributor of aerospace mil-spec hardware and electrical components, announced it intends to open a Las Vegas distribution center on Jan. 3, 2012. ECAS maintains an extensive inventory of AN, MS and NAS fasteners and O-rings.
MRO and logistics software company Component Control (Booth No. C10533) is announcing the formal launch of its new Web Online RFQ parts and services search software here at NBAA.
“Although an industry-wide recovery remains stalled, it appears that select markets for [pre-owned] newer, later-generation [current production] business jets are showing signs of stability in market price, reduced inventory levels and absorption rates,” according to Aircraft Post president Dennis Rousseau.
Aftermarket aircraft parts supplier Aeroinv.com will now be listing more than 150,000 part SKUs worth $350 million on Inventory Locator Service. ILS provides an electronic marketplace that enables subscribers to buy and sell parts, equipment and services. The inventory includes major brands of parts and components for most aircraft models.
“The first five months of the 2011 pre-owned market showed early-stage recovery signs,” with used business jet retail sale transactions growing by 19.7 percent during the period, according to data released by business aviation information firm JetNet.
A new measure to open up defense procurement by European countries to greater competition is finally coming into force this year. In January 2009 the European Parliament approved the European directive on defense and security procurement, which should greatly increase the percentage of defense contract opportunities that EU governments offer to bidders from other European countries.
The buying momentum that had been building during the fourth quarter of last year seems to be spilling into this year, as evidenced by a move lower in inventory to levels not seen in more than two years.
Sales transactions of pre-owned business jets and turboprops, as well as turbine helicopters, posted healthy increases from a year ago, according to data released by business aviation information firm JetNet. From January through October 31, business jet sales transactions climbed by 16 percent, followed by turbine helicopters (up 15.2 percent) and turboprops (up 4.5 percent).
According to the latest data from JPMorgan Research, pre-owned business jet inventories fell last month, reversing a three-month upward trend, though demand remains “weak.” Inventories decreased to 11.7 percent of in-production business jets, but JPMorgan said they remain elevated and noted that inventories have fallen less than 0.1 percentage point per month on average this year.