Fri, May 06, 2011
Demand From International Markets Expected To Help Reduce
Select Inventories
There is clear evidence of a return to a more stable pricing
environment for long range and large business jets, according to
business aircraft broker Jetcraft Corporation. Jahid
Fazal-Karim, Co-Owner and Board Member, says there has been a
significant reduction in the gap between buyer and seller price
expectations, due in part to the reduction of distressed assets
that flooded the market in late 2008. "Additionally," he said,
"original equipment manufacturers (OEMs) now have stronger order
backlogs, which has reduced the pressure to discount prices on new
aircraft. The current recovery is being driven by emerging markets,
including China, India, Russia and Africa, where long range
aircraft are typically the models of choice."
Fazal-Karim says that after a significant price drop across all
categories beginning in late 2008, there is now an increase in
prices of larger, longer range, higher-end business aircraft.
"Thus, we believe that the window of opportunity for discount
buyers is now closing," he said. "In terms of risk, political and
economic instability could jeopardize price recovery in some
emerging markets. As for the mid-size and light business jet market
segments, prices are stable but still low. However, shrinking
inventories due to increased demand and economic recovery in North
America, Europe and Latin America should stimulate values over the
next 18 to 24 months."
"Given our global presence, volume of transactions and pricing
of transactions, Jetcraft is seeing the tangible results of a
recovery in the business jet market," continues Chad Anderson,
President, Jetcraft Corporation. "Thanks to the considerable
efforts or our team and a corporate culture of thorough analysis
and rapid action, we have worked very hard to pursue opportunities
worldwide. We believe we are seeing the beginning of a sustained
recovery that will stimulate activity across the business aviation
sector. We are very pleased with Jetcraft's performance so far this
year and we look forward to announcing successful sales figures at
the European Business Aviation Conference and Expo (EBACE) in
Geneva, Switzerland on May 17," Anderson said.
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