We thought Par Avion Ltd’s Janine Iannarelli latest piece was an excellent read and wanted to share it with our readers.
“Where are the aircraft resale markets headed?” is among the first questions posed to me in just about every conversation I have as of late. Don’t you know I wish I could look forward with complete accuracy 100% of the time? Then I might be writing this blog from a beach in some exotic locale as opposed to my present state of being crammed into an economy seat on a commercial airliner. While in the past I felt I read the tea leaves pretty well, the clarity of the water seems to have gotten murky again in our so called economic recovery. Just when you think the analytics are showing you some sort of trend, a bend in the road appears. Actually sharp curves depending on the make/model of airplane in focus.
Many of us who make our living dealing in business aircraft are a little tired of trying to get ahead of the market and would welcome signs if not of an increase in sales, then how about a little predictability based on developing trends? One would like to be able to bring “X” airplane to market at fair market value, strategically position it so as to sell in a time frame commensurate with current conditions and provide for a decent return to its owner. Again, establishing a price that takes into account the market one is working with and reviewing the available historical data as well as current market conditions–not have the entire marketing plan go right down the drain because of the unexpected wild card play. Such as bringing an airplane to market at a price that shocks while insuring it will be the next to sell. Lately I have seen and heard of a couple of examples of such that go beyond undercutting the competition which I see as the more damaging effect of resetting the market. This is not selling.