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

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne-Unmanned w/AUVSI

Airborne On ANN

AMA 04.20.17

Airborne
04.17.17

Airborne
04.18.17

Airborne
04.19.17

Airborne
04.20.17

Airborne
04.21.17

Airborne-Unmanned 04.18.17

Airborne-YouTube

AMA 04.20.17

Airborne
04.17.17

Airborne
04.18.17

Airborne
04.19.17

Airborne
04.20.17

Airborne
04.21.17

Airborne-Unmanned 04.18.17

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

AMA Drone Report 04.20.17: Phantom 4 Advanced, NJ NIMBYism, AMA-DJI Team Up

Also: AUVSI XPO17 LIVE!, Steady Drone Sales, Drone v Shotgun... DJI’s new Phantom 4 Advanced offers a more powerful camera and more upgraded controls. The new upgrades the or>[...]

Airborne-Unmanned 04.18.17: Drones v Volcanoes!, Boston Marathon UAVs, XPO-LIVE!

Also: State Pavilions at XPONENTIAL, MQ-8C Fire Scout, Puma UAS, Drone Bust Drones DO wind up in some of the most amazing places... As evidence by the Universities of Bristol and C>[...]

Airborne 04.21.17: Gulfstream G280, Airport $$ Abuse, Boeing Jobs

Also: Drone Power, Jerkwater Drone Regs, CBP, Wichita UAS Mtg, Cessna Accident, Co-Pilot SNAFU, Atlas Air-Polar Air Gulfstream’s super mid-size G280 recently completed two mi>[...]

Aero-News: Quote of the Day (04.23.17)

"Without that drone we would not have found it and would have just been wandering around the bush." Source: New Zealand Police Sergeant Chris Turnbull, commenting on the use of a b>[...]

ANN's Daily Aero-Linx (04.23.17)

Aero Linx: The Collings Foundation The Collings Foundation is a non-profit, Educational Foundation (501(c)3), founded in 1979. The purpose of the Foundation is to organize and supp>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC