Hedge Funds Seem To Be The Best Customers

The market for vintage WWII aircraft is a hot one right now, with investors snapping up the aircraft at what they consider to be bargain prices.

And many of them are not being flown.

Barron's reports that the trade is going both ways across the Atlantic. Platinum Fighter Sales reports that it moves 20-25 vintage warbirds each year, and investors rather than pilots are buying many of them. Recently, the company said, they have sold aircraft to investment funds in Australia, Italy and the U.K., but are unable to reveal the buyers due to confidentiality issues. Similarly, according to Platinum Fighter Sales owner Simon Brown, U.K. warbirds such as Spitfires are attractive to U.S. buyers because of the appreciation of the dollar post-Brexit. A Spitfire can be acquired for $2.3-$3 million which is "historically cheap," Brown told Barron's.

But today's buyer is not so much an airplane enthusiast as an investor who sees the aircraft as an investment. They prefer airworthy aircraft, but it's not required. The aircraft is an asset for which they paid "X" and they hope to sell it for "Y", Brown said. Many are former car enthusiasts who see that market as played out, so they've switched to warbirds.

Some of the airplanes wind up flying in WWII movies, such as "The Battle of Britain" and "The Longest Day". But others remain parked on a ramp or as aging hangar queens, waiting for the buyer to come along.

(Images from file)

FMI: Original Report