How is the private aviation market weathering the economy?
I am not sure if there is any aspect of the global economy that the current unrest has left unscathed—private aviation is no exception. The number of pre-owned aircraft on the market is up, sale prices are down and aircraft manufacturers’ backlogs will shorten as customers start to cancel orders. Buyers are happy to wait on the sidelines looking for an indication that the market has hit bottom. Sellers, often unwilling to accept the new world order, are slow to lower asking prices. At some point, prices move into a range where buyers see value and deals get done. But there is another factor currently in play as well—some borrowers are finding it harder to get financing. Fractional and charter operators are also seeing an impact. The Financial Times reported that NetJets Europe is now forecasting revenue flights to be flat this year, as opposed to a 10-12% growth originally forecast. Numerous charter operators are reporting a drop in demand as well—some by as much as 40% or more. People
