Used Bizjet Inventory Stubbornly High
It's still a buyer's market for business aircraft of all shapes and sizes and the stubborn cycle shows no sign of relenting, although it is changing. A report prepared by JETNET says the number of transactions is on the increase, too. "As 2013 unfolds there remains a large inventory of business aircraft available at very affordable prices," the report says. While that's good news for anyone in the market for an airplane, it's bad news for manufacturers because when there are lots of cheap used aircraft on the market, it can be tough to sell new aircraft. Although more used aircraft are being bought and sold, the number on the market remains at about 2,500, up from 1,662 before the recession.
It's also taking longer to sell an aircraft. In the first quarter of 2013 it took on average 71 days longer to sell a business jet even though asking prices have decreased about 3.3 percent. Among the biggest changes in the report is the sharp decline in turbine helicopter sales. The helicopter market was relatively untouched by the recession but that appears to be over. Turbine helicopter sales dropped from 351 in the first quarter of 2012 to 229 in the same period of 2013, a 34.8 percent reduction. The bloom may also be coming off the large business jet market. Before the recession, just 19 percent of bizjets for sale were big ones. Now 28 percent, almost 700 aircraft, are on the block.