Activity in the used jet sector continues to thrust ahead as another year-over-year decline in inventory served to strengthen prices among a number of models and appears poised to continue. During the last two years the used inventory averaged a 155 net decline and stands at 1,730 as AIN goes to press, a figure it hasn’t seen in four years.
AirNav, the Internet-based provider of aviation navigation and fuel data, has entered a strategic alliance with fuel supplier Air BP. Under the arrangement, AirNav now provides all Air BP-branded FBOs with its Gold level, prominently displaying the FBO’s logo on each AirNav airport Web page.
Raytheon Aircraft is rolling back the prices of more than 17,500 parts, allowing Beechcraft and Hawker customers “to purchase parts at a reduced price–many reduced by 50 percent.” This latest round of discounts follows an October announcement of price reductions on more than 10,000 parts. Customers can now see each new part price update on www.raytheonaircraftparts.com.
The momentum that began to build in the used jet market late last summer is rolling into this year. Overall inventory is about where it was a year ago, but after a significant month-over-month build-up through July, sales activity heightened and just as quickly reversed direction. Between August and the middle of last month, roughly 100 more aircraft departed the market than arrived.
IBM predicts a sea change in the aerospace industry over the next five to 10 years, one that will transform the prevailing business model from one dominated by what IBM aerospace and defense industry sector partner Michael Hackerson called vertical silos to a more egalitarian and cooperative approach.
2006 saw a rebalancing of the jet market
Dallas, Texas-based aftermarket parts and services supplier Aviall (Stand A911) has launched Operation Global Reach, a program designed to showcase the company’s best commercial practices on material and supply chain management to the world’s military market. Services include forecasting, export licensing, reverse logistics, customer kitting and other supply chain management solutions such as certification document accessibility.
Honeywell Aerospace is giving both its own staff and its customers the tools they need to ensure consistently good product support, according to Adrian Paull, vice president of customer and product support.
This year quickly established itself as one of “rebalancing” of used business jet of inventory and aircraft pricing. A string of back-to-back quarters of falling supply and corresponding price increases came to an end, but not before inventories dipped to their lowest levels since 2000.
“Everybody is sensitive to the price of jet fuel,” said Steve Elefant, explaining why he founded fuel-pricing Web site AircraftFuel.com last year. The Web site’s purpose is simple: to consolidate discount and contract fuel programs in one place so pilots and dispatchers don’t have to go to each program’s Web site to find the best price.