Aircraft Shopper Online (Booth No. C10016) has signed an agreement to provide its clients with the services of Asset Insight at a discounted rate. Asset Insight employs a grading system that it says allows it to accurately assess the value of more than 75 large, medium and small jets. It does so by evaluating an aircraft’s maintenance condition and comparing it with the condition of other aircraft of similar make, model and age, particularly those listed for sale.
Finding a pricing floor for many models has been as elusive as the search for Atlantis, but recent market action is giving hope to underwater sellers. The typical summer plumping of inventory never occurred this year, setting the stage for what could be an active wave of buying in the final quarter.
Aerospace firms have been doing a roaring trade here at the Paris Air Show, selling record volumes of aircraft, engines and all the associated systems and services that go with them. But, according to leading mergers and acquisitions specialists, they should be just as busy buying and selling each other since the industry recovery now presents the ideal combination of motive and opportunity.
Berkshire Hathaway’s first-quarter financial report notes that revenues at its NetJets subsidiary grew by 18 percent year-over-year, generating positive pre-tax earnings of $57 million versus a pre-tax loss of $96 million in the same period last year.
UK-based International Bureau of Aviation (IBA) is offering an aircraft valuation tool called Jet Values 2. This Web-based product (www.jetvalues2.com) provides 24/7 information to customers needing current and forecast aircraft values.
NBAA and the General Aviation Manufacturers Association last month at the NBAA Convention launched the Business Aviation E-Valuation Toolkit, an online resource to help calculate and explain the value of business aircraft in relation to a company’s business objectives.
Business jet valuations for pre-mid-1990 models are in “dire straits” and likely will never recover, Conklin & de Decker vice president and co-owner David Wyndham said in the company’s latest e-newsletter.
“The pre-owned business jet market isn’t tanking or upside down; it just returned to normalcy,” noted Dennis Rousseau, a 25-year business aviation veteran and president of AircraftPost, an online market valuation service for midsize and large-cabin business jet owners.
Many business gurus believe knowledge is power, but the ability to transform that wisdom into action is the real measure of success. With just that goal in mind, 17 general aviation business leaders–CEOs, presidents, CFOs and operations managers–gathered at Northwestern University’s Transportation Center recently for the Strategic Management for Aviation Service Firms conference.
Like the shifting of continental plates beneath the earth’s crust, changes in the fractional-aircraft industry are under way. And while only a few cracks are now visible on the surface, underground rumblings signal greater turmoil to come. By mid-year, if not sooner, according to industry observers, the fractional landscape is going to look very different from the way it does today.
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