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 11.19.14 ** HD iPad-Friendly -- Airborne 11.19.14 **
** Airborne 11.17.14 ** HD iPad-Friendly -- Airborne 11.17.14 **
** Airborne 11.14.14 ** HD iPad-Friendly -- Airborne 11.14.14 **

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 11.19.14: FAA v Pirker Update, F-35C Night Traps, G650ER Delivers

Also: EAA’s Eric Fatla, Legend Cubs Honor Veterans, EAA Hall Of Fame, AAA Record Breakers, AMA Responds to AP Welcome to the first Airborne to be webcast in our Fourth year o>[...]

GAMA, NATA Among More Than 500 Signers Of Letters Urging Tax Credit Extension

Letters Sent To All Members Of Congress Press For Action In Lame-Duck Session GAMA and NATA were among 527 organizations signing letters to leaders in the U.S. House and Senate cal>[...]

ANN's Daily Aero-Linx (11.20.14)

Montana Pilot's Association Montana Pilot's Association (MPA) is a non-profit organization founded in 1939, comprised of nearly 700+ pilots, to serve the interests and needs of gen>[...]

ANN's Daily Aero-Term (11.20.14): Cold Air Damming (CAD)

The phenomenon in which a low-level cold air mass is trapped topographically. Often, this cold air is entrenched on the east side of mountainous terrain.>[...]

Aero-News: Quote Of The Day (11.20.14)

"While it is disappointing to see the third-quarter sales drop slightly compared to the first half of the year, the industry has experienced modest year-over-year growth in sales c>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC