Business Aviation Profile

Pre-owned Aircraft Sales Pace Quickens

by Global Sky Team

Pre-owned Aircraft Sales Pace Quickens

If preowned aircraft sales are a leading indicator of how the outlook for new and used business jets is shaping up, then the market is surprisingly heated as the world’s economies begin to see light at the end of the pandemic tunnel.

Dealers, including Asian Sky Group, which are accredited by the International Aircraft Dealers Association (IADA), usually average over 700 transactions and $6 billion in sales volume per year. However, in the 12 month period from April 1, 2020 to March 31, 2021, IADA dealers actually registered 1,222 global transactions worth more than $10 billion.

For the calendar year 2020, new aircraft manufacturers also delivered just over a thousand new turbine business aircraft (jets and turboprops). One could conclude that quite a few business aircraft changed hands since the pandemic struck a year ago in March.

Members of IADA closed 211 preowned aircraft sales transactions in the first quarter of 2021 alone, which is usually a lackluster quarter for aircraft sales. In the same quarter, they inked another 246 aircraft deals that are scheduled to close in the next few months.

The data was included in the Spring 2021 IADA Market Report. IADA began tracking preowned sales metrics for business aircraft in April 2020 on a monthly basis, as a result of the volatile market conditions caused by the pandemic and will be announcing future results quarterly.

“The IADA data clearly indicates that the aviation industry has proven its resilience through the economic fluctuations brought about by the pandemic and is now on a trajectory for continued success,” said IADA Executive Director Wayne Starling.

“Further, a perception survey of our members indicates they expect the next six months to demonstrate a slight increase in all market conditions, with the strongest areas of increase in the light and midsized jet markets,” Starling added.

The perception survey reflects the opinions of IADA’s entire global network of accredited dealers, certified brokers, major OEMs, and more than 60 of the industry’s leading products and services providers. The Spring 2021 IADA Market Report is available at https://aircraftexchange.com/market-report.

IADA is now regularly taking the pulse of all of its members, including accredited dealers, certified aircraft brokers, new airplane manufacturers, and products and services providers. As a group they have become more optimistic as we enter 2021.

They generally think that the current business aircraft sales market is better than normal, with expectations for a slightly better market in the next six months. Those polled feel that the aircraft leasing market will be at normal levels for the next six months.

Respondents to the most recent survey indicated the next six months will show a slight increase in all market segments, with the strongest areas of increase in the light and midsize jet markets. The fourth quarter 2020 ultra-long-range jet market responses predicted mostly stable conditions; however, the first quarter 2021 responses indicate the next six months will show a slight increase in this sector of the market.

IADA members executed 119 acquisition agreements during the first quarter and were exclusively retained to sell 157 aircraft. During the quarter aircraft transaction prices were lowered on only 27 aircraft, while 41 transactions fell through for one reason or another, which was about the average for the previous three quarters.

The organization’s exclusive marketplace, www.AircraftExchange. com, lists more than 500 business aircraft for sale on its site. The aircraft range from turboprops to VVIP long range business jets. The online marketplace lists only aircraft offered exclusively for sale or lease by IADA members.

Asian Sky Group is proud to be an accredited dealer member of IADA. IADA’s dealer organizations and individual brokers do business in more than 100 countries. All IADA dealers have been accredited by the organization, and brokers also receive certification, both through strenuous approval processes to ensure the utmost professionalism and integrity.

IADA members participate in a program of ongoing education to remain current on best practices and new developments in acquiring and selling business aircraft, as well as abiding by a strict code of ethics, integrity and transparency. IADA represents a variety of IADA verified product and aviation services that also operate with the highest professional standards in the industry.

IADA is a professional trade association formed more than 25 years ago, promoting the growth and public understanding of the aircraft resale industry. IADA now offers the world’s only accreditation program for dealer organizations and the only certification program for individual brokers. The process delivers high standards of ethical business and transparency regarding aircraft transactions, leading to a more efficient and reliable marketplace. For more info about IADA go to www.IADA.aero.

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