Preowned Business Jet Market is Rebalancing

The International Aircraft Dealers Association (IADA) said the preowned business jet market is “rebalancing” with less “frenetic activity” in the first quarter of 2023, marking a cooldown from its high in 2022.

IADA dealers closed 239 transactions in the first quarter of 2023, which is lower than the 288 deals in the same period in 2022 and higher than the 213 in the first quarter of 2021, according to the First Quarter 2023 Market Report’s global perception survey done by IADA members. The number of aircraft under contract also fell to 197 in the first quarter of 2023 from its previous high of 259 in 2022. More business jet transactions are fetching lower prices in 2023.

“There is evidence that demand and supply forces are rebalancing, with less frenetic activity, more realistic pricing, and a slow but steady buildup of available inventory,” said IADA Chair Zipporah Marmor, Vice President of Transactions for ACASS in Montreal. “Although specific low-time aircraft with attractive pedigrees continue to attract top-dollar, the overall market has begun to downshift from a peak characterized by accelerating prices and strong residual values,” she added.

Despite macroeconomic forces, geopolitical tensions, and the latest banking crises, the IADA said customers have remained interested in buying, selling, and flying business aircraft. It maintained that the market for business aviation products and services remains vibrant although activity levels in aircraft sales, flight activity, and MRO shop demand have generally slipped back from record highs in 2022.

IADA Executive Director Wayne Starling predicts that the preowned business aircraft marketplace will continue to experience relatively tight market conditions through 2023. This is due to customers who cannot or will not wait two or more years to receive their next aircraft.

“Although pre-owned inventory levels have begun to slowly replenish, most OEMs have grown their order backlogs to represent more than two years of production and they are straining to accelerate deliveries in the face of slowly recovering supply chains,” Starling said.

Experiencing a slower preowned business jet market, IADA members expect the pace to pick up in the latter part of 2023.

“Surprised by how many acquisitions we have already confirmed for early in 2023. Feel that early part of 2023 will be a bit slower, but latter part of 2023 is looking even more active,” said Chad Anderson, IADA accredited dealer Jetcraft.

“Feeding frenzy is over. The market has slowed to a balanced pace, yet with lots of inquiries and activity,” added Bryon Mobley, IADA accredited dealer Wetzel Aviation.

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