Chad Anderson

Gulfstream’s launch of its long-range G700 twinjet was the lead story at last week’s NBAA business aviation convention in Las Vegas and led to a buoyant mood at the show. In our more than 55-year history, we’ve discovered new aircraft announcements are always good news for the pre-owned market.

When buyers have options to upgrade to the next model, this moves young, high-quality aircraft into the pre-owned market. However, despite the surge in manufacturer announcements of late, sought-after young pre-owned jets remain in limited supply, compared to the high demand for them.

Having a minimal amount of these young aircraft for sale underpins demand for new models. If buyers miss out on the acquisition of a pre-owned Global 6000, or Gulfstream G550, they may not want to move away from that model; choosing instead to purchase a new version.

We can therefore see how the new and pre-owned markets share a valuable interrelationship, with rising activity in one spurring interes...

Read more →

Last month we released our 5-Year New & Pre-Owned Business Aviation Market Forecast – the first report of its kind to take a precise, comparative and quantified look at both types of aircraft transactions.

Aside from introducing pre-owned market predictions, we’ve updated our overarching methodology as compared to previous reports, making it even more precise. We’ve shifted to a five-year rather than a 10-year outlook, to better reflect the current aircraft ownership experience, and adjusted the overall population of aircraft analyzed to more closely align with our expertise. Furthermore, we’ve classified new deliveries as transactions only from date of entry into service and retrospectively normalized classifications prior to 2012, when all aircraft built were considered new deliveries. Finally, we’ve leveraged more of our own transaction data for a truly consolidated outline of how we see the industry behaving.

Read more →

How findings from our 10-year market forecast reflect real-world trends in the private jet market

The annual NBAA-BACE trade show is defined by one thing – an industry-wide interest in, and passion for, aviation.

Which is why Aerion’s announcement – that the first transatlantic supersonic jet since Concorde would soon be taking to the skies – was greeted with such enthusiasm at this year’s show. Aerion announced that the jet is on track to fly in June 2023, with the first transatlantic crossing the same year, 20 years after the celebrated Concorde flew its last.

Click to Enlarge

The faster-than-sound business jet will undoubtedly be a market disruptor, particularly given its anticipated intercontinental capabilities, which will be a key indicator of its market performance. According to Jetcraft’s new 10-year market forecast, those regions where business needs are increasingly globalized will take the lead in terms of unit deliveries. North America is set to account for 60% of deliveries (5,241 units) over the forecast period, with Europe taking second place at 18% (1,572), and Asia Pacific third at 13% (1,136).

Read more →

How findings from our 10-year market forecast reflect real-world trends in the private jet market

This year’s NBAA-BACE trade show in Orlando was marked by an industry-wide feeling of confidence.

The show coincided with our fourth annual 10-year business aviation market forecast, which reaffirms the optimism felt by show exhibitors and attendees. According to the forecast, steady growth in the private jet industry is set to continue, with 8,736 unit deliveries representing $271 billion in revenues (based on 2018 pricing) anticipated over the next 10 years.

Now that we’ve successfully navigated through our industry’s most difficult period, OEMs are again using trade shows to make a statement about their place in the industry. In Orlando, Embraer took early news headlines with the announcement of two new aircraft, the Praetor 500 and 600, both of which made their world debut on the hot tarmac of the static display.

Read more →

Jetcraft’s recently released 10-year business aviation market forecast sees a sector set to enter a new business cycle – one that will be defined by large jets and big revenues. Chad Anderson, President of Jetcraft, takes a closer look at how this will impact the market, aircraft prices and the pre-owned segment.

By Chad Anderson, Jetcraft President

According to Jetcraft’s latest annual 10-year business aviation market forecast, our industry is at a new beginning point. After nearly a decade since the recession, business aviation has good reason to be optimistic as we’re now well-positioned for several years of steadier, healthier growth and expanding revenues. Let’s take a closer look at what’s driving this sentiment.

Read more →

This is an exciting time for business aviation in Europe, as echoed this month at EBACE 2017. Europe has quality aircraft priced correctly and good market conditions that are attracting the western buyer—great news for the European seller. Last year, the best fiscal year in our company’s 55-year history, Europe accounted for approximately 20% of our annual transactions.

The recent election of a new president in France is beginning to chip away at some of the uncertainty surrounding the European business aviation sector’s longevity. In addition, the recent German, French and United Kingdom high stock markets results are also paving the way for transactions. These conditions, along with the euro increasing while the U.S. dollar continues to fall, has flushed Europe with motivated sellers. What this means is Europe has plenty of sellers with aircraft that are attractive to buyers in the region and in North America, and sellers that can benefit from the current currency situation....

Read more →

Written by Chad Anderson, Jetcraft President
[email protected]

The continued unpredictability of the business aviation sector and the impact of certain world events throughout the past 12 months have directly impacted our long-term growth outlook for the business aviation sector. Accordingly, we adjusted our predictions of deliveries and revenues in our recently released 2016 Market Forecast from last year’s projections resulting in numbers that now point to 7,879 unit deliveries worth $248 billion, from 8,755 worth $271 billion in 2015.

To get a clearer view on what is contributing to these deliverables and revenues projections, we took a closer look at macro-economic issues that will impact the state of our industry over the next ten years. Specifically, our 2016 forecast compares how the private jet aviation sector’s business will fare against certain economic trends– a slowdown in wealth creation, the migration of ultra-high net worth individuals (UHNWIs) from emerging market economies and the fluctuation of oil prices – as well as how our industry’s growth compares with past business cycles.

Read more →

Written by Chad Anderson, Jetcraft President
[email protected]

With so much focus on the surging North American business aviation market, we should not forget Europe. Even though strict rules on lending practices and continuing currency issues do pose some challenges, Europe continues to show economic resilience. The continent still has buyers and sellers, although fewer than previous years.

Despite such challenges, we continue to see activity in the European business aviation sector as it comfortably remains the second largest market next to North America. The European business aircraft fleet is one of the world’s youngest, with close to half of its aircraft being less than ten years old. In addition, transaction activity remains steady-state for Europe. Our own market analysis points to Europe accounting for 14% of the total worldwide business aircraft deliveries throughout the next decade— not far from its traditional 15%-unit delivery share.  Such activity reinforces the fact that Europe remains a healthy place to do business. And we see activity primarily from North America fueling Europe’s business jet engines.

Read more →

Written by Chad Anderson, Jetcraft President
[email protected]

Year-end is a good time to sell your aircraft and remove it from your books for the new year as a corporate (or personal) asset. Once you’ve decided that you are ready to sell, there are several key pieces of advice to keep in mind in order to sell your aircraft for the best price possible. This will help you prepare your aircraft for sale on terms that you will be comfortable with.

1. Work with an Experienced Partner

According to the National Aircraft Resale Association, 14 percent of airplane owners don’t enlist the services of an expert with transactional aircraft experience to handle their sales. While some in that group are corporate flight departments or others with the requisite knowledge, a considerable number are less experienced people who may be outside of their comfort zone.

It is inadvisable to take on the unnecessary risk of trying to sell your aircraft without the full knowledge of its worth and a thorough understanding of how it fits into the marketplace. For example, how is interest in your class or manufacturer of aircraft trending? Are there buyers in other regions of the world who would pay a higher premium for your aircraft on the market? Having answers to these types of questions can dramatically improve your chances of obtaining the best possible sales price for your aircraft.

Read more →