Chad is the editor of AINalerts, AIN's daily business aviation newsletter, and is also the news editor at AIN Media Group.&nbsp;He has been writing about aviation, with an emphasis on business aviation, since 1994. Chad started his writing career at The Avion,&nbsp;the&nbsp;student newspaper at Embry-Riddle Aeronautical University in Daytona Beach, Florida, serving as editor-in-chief before graduating with a bachelor's in aeronautical science. After a stint as managing editor at Professional Pilot&nbsp;magazine, he joined&nbsp;AIN in late 1998. Chad holds a commercial pilot certificated with instrument and multi-engine ratings, and he also is a CFI/CFII. He lives and works from his home in Venice, Florida.

Online Editor

Chad Trautvetter

Business jet demand has not recovered in line with corporate profits as it has in the past. J.P. Morgan aerospace analyst Joseph Nadol III attributes the sluggishness to “the stigma attached to bizjets during the recent recession and a focus on cost cutting among corporate customers. We estimate that 2013 U.S. corporate profits were up about 50 percent from the 2008 trough, whereas bizjet deliveries have yet to turn up decisively.”


Business jet deliveries rose 9 percent in the first half of this year, “boosting our confidence that production will move off the bottom this year,” he said. J.P. Morgan’s 2014 business jet forecast is calling for 4-percent growth, or 687 deliveries, which would bring shipments back to the 2011 level. “We estimate faster growth going forward, driven largely by new or relatively new models,” Nadol said.


Meanwhile, pre-owned business jet market conditions were “particularly challenging in July, as used inventory rose for the first time since October 2013 and pricing was down again,” he noted. Inventory of in-production jets increased to 8.3 percent last month, up 0.3 points from June. Nadol warned observers “not to read too much into the inventory data yet since the weakness was not broad based, has not broken above the recent range and the inventory of young aircraft was stable.” The downward trend in pre-owned pricing, which fell 3.5 percent year-over-year last month, “is more sustained and more pronounced, an important signal that demand is not yet healthy,” he said.

Bizjet Demand Still Lagging Rise in Corporate Profits

Regardless, business jet deliveries rose 9 percent in the first half of this year.

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