Older Business Jets Values Fall
In going over pre-owned aircraft figures, Conklin & de Decker, an aviation consulting firm, finds that more than 25% of "older business jets" are currently for sale and that will have an impact on the business jet market and its recovery, with new designs leading the charge. For business jets built before the mid-1990s the company believes values are falling and "won't likely recover." This is due in part to their higher relative operating costs and lower economic useful life remaining that make these jets a tough sell "at nearly any price." Jets built from the mid '90s to the early 2000s "should see a mild recovery that may not happen until 2012, which complicates matters when it comes to resale. By then, many more new efficient alternatives should be available on the market while these older jets will be reaching their first decade in service. That said, Conklin & de Decker finds that the youngest jets will offer the best value and therefore "will recover first and strongest." The younger aircraft will be the group that is currently less than about five years old. The company's best guess sees a business jet recovery becoming apparent in 2010 with better years returning in 2012, even though the current market has jets being offered at values that "are about as good as it gets."
The company notes that while the economy may be bottoming out, aviation should lag the general recovery. Conklin & de Decker is an aviation information company run with the self-proclaimed objective to provide the general aviation industry with impartial products and services designed to save its clients time and money.