The International Bureau of Aviation says that it sees positive trends in the bizjet sector, but that there is still a lot of previously-owned inventory on the market. That puts a lot of leverage in the hands of those in the market for a business jet.
IBA’s President, Phil Seymour, and Head of Consultancy, Mark Wooller participated in the Quaynote Communications two day conference, ‘The Future of Business Jets’, in London last week. Seymour and Wooller hosted two round tables discussing key topics affecting the market, entitled ‘What are the best strategies for successful Corporate Aircraft Asset Management?’ and ‘Corporate Fleets, how are flight departments changing and what will be their future?’ Phil also gave a business update on the sector.
“Recent market statistics suggest that there we are starting to see positive trends within the Business jet sector,” said Wooler. “The used aircraft inventory has fallen about 3% in the past 12 months and aircraft operators are reporting a continued increase in revenue hours over the same period. But the sale of both new and used aircraft is still sluggish, with most manufacturers expecting similar overall deliveries to last year and low expectation of significant improvement before 2012. It would be fair to say it is still very much a buyer’s market.”
Seymour also gave a presentation on updated business jet values and the important aspect of aircraft damage and its impact on values. “Damage to business jets is always seen as a negative impact since the buyers tend to want perfection – unlike the commercial airliners, where damage is more often tolerated,” he said. Seymour presented a summary of the factors and methodology taken into consideration when assessing aircraft damage and its effect on the current and future value of the aircraft. The methodology has been successfully used in mediation and trials where ‘diminution in aircraft value’ is being tested or assessed.
Source: AERO-NEWS NETWORK