The used business jet market is in flux as a result of political uncertainties, increased availability of good pre-owned inventory, and limited access to pre-buy inspection facilities due to a higher demand for ADS-B conversions and retrofits, says Brian Proctor, Mente Group president and CEO.
“As a result, we are beginning to see decreasing market values in what were relatively strong sectors last year,” Proctor , left, said. “Some of the higher-end markets are giving back price gains realized last year in a more buoyant environment,” he added.
While pre-owned inventory grew in the first quarter of 2019, a divided Congress and Presidential politics have caused some fleet owners, especially individuals who own aircraft, to defer decision making. The lack of definition in the U.S. creates indecision in the biz jet marketplace and spreads around the world.
Prices Up in 2018, Down Already in 2019
“What we’re seeing right now is that the super-midsize and up jets have given back most of the price gains that were made in all of 2018. For example, Challenger 350s were up
down that much already this year. Gulfstream G550s were up five to eight percent, but this year they’ll be down that much. Challenger 300s were up about 15 percent in 2018 and today they’re down about 10 percent,” Proctor said.
Cole White, right, who heads Mente Group’s strategic consulting division, analyzes the business jet markets across the globe. “In terms of the international markets, we’re starting to see a modest recovery in South America,” White says. “There’s more stability in the key countries of Brazil, and Chile, and Argentina. However, there is obviously upheaval in Venezuela that is expanding to its neighbors. But as you go further south, the economies are stabilizing to some degree.”