Tue, Nov 16, 2010
But It's Still Very Much A Buyer's Market
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.
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