UBS Investment Research’s business jet report–released yesterday–shows that business jet flight activity was 13 percent lower last month compared with the same period last year, although the data was slightly better than the 18-percent year-over-year decline in August. Year-to-date, flight activity is down 9 percent.
The NBAA Convention in Orlando, Fla., which concluded yesterday, attracted 30,811 attendees, just shy of the 30,963 people at the event last year in Atlanta. It was a “solid turnout” given all the circumstances, in the opinion of association president and CEO Ed Bolen. “This year's show comes amid spikes in the cost of fuel, tightening credit markets and a challenging economy.
Starting next year, Eclipse Aviation plans to ramp up production of the Eclipse 500 back to a rate of about one airplane per day, chairman and CEO Roel Pieper told AIN. Eclipse has enough cash on hand to move forward with the new production plans, according to Pieper, thanks in part to a recent financial infusion from the company’s agreement to build a factory in Russia.
Get ready for a bumpy ride. The sputtering global economy is sending the pre-owned aircraft market into a steeper dive and is likely to slow new aircraft sales and new aircraft development programs, according to leading industry analysts and observers. Prices for pre-owned business aircraft have been trending down for the last five quarters and the number of new jet buyers looking to unload their delivery positions is increasing.
According to UBS Investment Research’s business jet update issued on Friday, U.S. and international bizjet flight activity was “sharply lower” in August. However, about 86 percent of the flights UBS tracked were domestic flights within the U.S., meaning the international sampling is somewhat under-represented.
As if there hasn’t already been enough bad financial news, reports from UBS Investment Research and JPMorgan indicate that pre-owned business jet inventories continued to increase in August, leading both firms to warn that deliveries of new aircraft could fall as a result.
Separate reports released in the past week by JPMorgan and UBS Investment Research indicate that pre-owned business jet inventories continued to increase last month, leading both financial analyst firms to warn that deliveries of new aircraft could fall as a result.
In UBS Investment Research’s business jet update released on Tuesday, industry analyst David Strauss noted that U.S. business jet flight activity last month declined 11 percent from the same month last year.
“Things are better than they appear,” Sentient Flight Group vice president of aircraft management Gil Wolin said today at the 13th annual Corporate Aircraft Transactions Conference in New York City. Despite the souring U.S. economy, the business aviation industry is expected to be sustained by a growing number of international millionaires, declining airline service and fractional aircraft owners.
In his opening speech at Crossair’s December 6 extraordinary shareholders assembly in Basel, Switzerland, Crossair founder and outgoing chairman Moritz Suter expressed regret over the new shareholders’ decision to oust him and six other members of the board, but resigned “to ensure a smooth transition and secure a good start” for the reconstituted Crossair intercontinental airline.