Conundrum: A riddle, a complicated problem.
I would really like to have an open debate between the “Yes, I report asking prices when I list my aircraft for sale on JETNET” contingent and the “Make offer” crowd.
How about this? Imagine that we had all the brokers and dealers who have aircraft for sale in one room. We then ask them to stand up and take seats behind the banner that best represents their position regarding reporting asking prices. One side of the room is assigned to the “Make Offers”, the other side “ This is my Price”.
Once the shuffling is over…and everyone has a seat. Let the games (debate) begin.
The first and essential question is: Should brokers and dealers feel compelled to provide asking prices when listing their aircraft for sale on JETNET? Continue reading
JETNET, being the world leader providing aviation market data to the aircraft sales and finance professional for over 20 years, we are best positioned to objectively observe the resale markets on business aircraft.
What a ride it has been for the dealers, brokers and financiers of these planes. Going back to November 2007 there began a steady, at times meteoric, increase in the number of biz-planes coming to market. The inventory of for sale airframes was growing well in excess of 100 units a month for a time. But the summer of 2009 brought stabilization which continues to date. At the close of September 2009 there were 4511 business turboprops & jets offered for sale, 15.1% of the in-service fleet. That’s off 119 airframes from the July peak of 4630.
But of course stabilization of inventory does not alone make for a recovery. Buyers must return. Prices must firm. Certain models that sold in the low $20M range just a year ago now struggle to command $10M in the market of the moment. And bear in mind this sobering point; although the resale inventory is finally trending down it is still nearly 2000 airframes above the November 2007 inflection point of 2585 aircraft listed for sale.