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IADA Sees Active December Aircraft Resale Market

by Mia Yao
IADA Sees Active December Aircraft Resale Market

The International Aircraft Dealers Association (IADA) said it is seeing “very active” business aircraft resale activities in December with signs of normalizing in 2023.

“The signals that we’re seeing from the broker-dealers in our group and our service providers are that the markets are beginning to normalize, and buyers are starting to become more rational,” said Zipporah Marmor, Chair and Vice President, IADA, adding that the “frenzy” of the last 12-24 months has calmed down, which is a healthy sign for the industry.

With more than 1,200 business aircraft worth US$8 billion being bought and sold in the first 11 months of 2022, the pace of business transactions at the end of this year is speeding up before the 100 percent bonus depreciation in the US expires by the end of the year.

Bonus depreciation allows a taxpayer to deduct 100 percent of depreciation upfront on their federal tax return and pay fewer taxes by claiming the cost of depreciable assets.

The IADA, with its fourth-quarter market report to be released in January 2023, projected a total of over 1,320 deals worth more than US$8.8 billion dollars by the end of the year, noting that the scale is likely to surpass the performance seen in 2021.

“We do think the first half of 2023 will be strong as we’re seeing some buyers waiting to see what happens after 100 percent U.S. bonus depreciation is no longer on the table, and the rush to close at the yearend is over. And, of course, we are seeing increased inventory,” Marmor added.

The IADA, which extended its global profile to Greater China and Southeast Asia by joining the Asian Business Aviation Association, is also monitoring factors such as the geopolitical situation in Ukraine and China’s pandemic policy.

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