Europe’s Shrinking Bizjet Fleet | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Airborne Unlimited-
Monday

Airborne-Unmanned w/AUVSI-
Tuesday

Airborne Unlimited-
Wednesday

AMA Drone Report-
Thursday

Airborne Unlimited-
Friday

Airborne On ANN

Airborne 01.22.18

Airborne-UnManned 01.23.18

Airborne 01.17.18

AMA Drone Report 01.18.18

Airborne 01.19.18

Airborne-YouTube

Airborne 01.22.18

Airborne-UnManned 01.23.18

Airborne 01.17.18

AMA Drone Report 01.18.18

Airborne 01.19.18

Tue, May 08, 2012

Europe’s Shrinking Bizjet Fleet

Analyst Brian Foley Says 'Significant Attrition' Not Surprising

"I wouldn't exactly call it a disappearing act," says general aviation analyst Brian Foley (pictured). "But it's been a significant attrition and not altogether surprising in view of Europe's economic woes. At this rate it may be another year before Europe's fleet can grow again."

Over the last 12 months some 50 European business jets, or roughly 2% of the continent's population, have been sold into other continents whose fleets have grown an overall 3%. A commanding 79% of them have found new homes in North America, mostly in the United States and Canada. The rest have gone to Africa (7%), Australia (5%) South America (5%) and Asia (4%).

Today's for-sale statistics do not bode well for a prompt recovery. Almost one European business jet in five (19%) is up for sale, which is more than one-third higher than the worldwide average of 14%. Of those exported, their average age of 12 years matches the overall European fleet age exactly, which means that the aircraft being sold are a representative mix of everything in the fleet from old clunkers to the newest, most fuel-efficient models. Foley's hypothesis is that the world's pre-owned jet buyers have been shopping in Europe where the high supply keeps prices down. Another factor is Europe's lowering Euro, which favors outside buyers. "This underscores the seriousness of Europe's crisis," Foley says. "Europe may be the last bastion of great pre-owned airplane deals as owners must sell in this austere climate."

Most pundits think that Europe's new-aircraft sales recovery will lag until its pre-owned inventory diminishes, but Foley disagrees. "There is no cause-and-effect relationship because, generally speaking, new and pre-owned buyers are totally different groups. Our experience shows that those who buy new will almost invariably continue buying new in order to get the latest model that is truly personalized to their requirements and not 'tainted' by the tastes of a previous owner. Conversely, pre-owned buyers tend to be more value-driven, flexible and receptive to the immediate-availability advantage of buying pre-owned. With a sufficiently improving economy, both types of buyers will return; that's my thesis. A declining pre-owned inventory will not cause new-aircraft sales to surge but can presage their recovery."

FMI: www.brifo.com

Advertisement

More News

Airborne 01.22.18: Yak-110 Coming 2 OSH18!, Halladay Impaired, NTSB Bell 525 PC

Also: Hong Kong Airlines Recruit, AUVSI Innovation Challenge, Uncontained Engine Failure, Wings Over The Rockies OK... we really can’t wait to see this... The Yak-110, an inn>[...]

NTSB To Meet On Uncontained Engine Failure

Meeting Tuesday Will Be To Determine Probable Cause The NTSB is scheduled to meet Jan. 23, 2018, to determine the probable cause of the Oct. 28, 2016, American Airlines flight 383 >[...]

AFJROTC Launches Flight Academy Program To Address Aircrew Shortage

Select Candidates Will Earn Private Pilot Certificates Beginning This Summer Headquarters Air Force Junior ROTC has launched a program aimed at potentially putting more pilots in t>[...]

Roy Halladay May Have Been Impaired At Time Of Icon A5 Accident

Forensic Pathologist Says He Had A Combination Of Drugs In His System Former major league baseball pitcher Roy Halladay may have been operating his Icon A5 under the influence of d>[...]

AMA Drone Report 01.18.18: 1 Million Drone Reg's, Autel EVO, FAA Sued Again

Also: New DJI Mavic?, SureFly Not Yet, Drones Tracking Illegal Dumping, 'Illicit' Drone Video The FAA has registered a million drones, the DOT announced last week at CES in Las Veg>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2018 Web Development & Design by Pauli Systems, LC