The full report, available here, stated that IADA dealers and brokers collectively account for over half of all transactions worldwide. 

How’s the Market Looking?

IADA’s Perspective Survey of over 1,000 members included dealers and brokers for both new and pre-owned aircraft. 

It showed that, with 58 percent of dealers sharing their results from the July-August-September time frame, IADA dealers reported 144 new acquisition agreements in the third quarter of 2024. This is up 4 percent from the second quarter of the year, but up 22 percent year over year compared with the third quarter in 2023.

• READ MORE: Honeywell Forecasts Strong Growth Ahead for Business Aviation

While the number of exclusive retainer agreements stayed relatively steady in Q3 2024 from the prior quarter, reduced-price listings were up 49 aircraft year over year.

“While seemingly significant, the 67 percent increase in reduced-price listings, reported Q3 [year over year], is measured from a relatively small base,” the IADA report said. “As expected, price adjustments are a feature of today’s market as the resetting of value expectations continues after post-pandemic highs experienced in 2021 and 2022.”

Reported activity in Q3 2024 included 373 closed deals and was the highest yet recorded for the third quarter since IADA’s Perspective Survey began in 2020.

“Year to date in 2024, the 993 closed deals reported were up 14 percent in volume compared with year-to-date 2023, an indicator of a healthy level of exchange activity in a counterbalancing marketplace—one in which IADA dealers are the preeminent players,” the report said.

The report stated Q3 2024 ended with 874 year-to-date (YTD) business aircraft transactions under contract, up 24 percent from 704 YTD at the end of the Q3 2023.

David Monacell, IADA accredited dealer at CFS Jets, said in the report that he expects a significant surge in Q4 and intensification after the election.

“Those that wait for ballots to be counted will likely deal with limited inspection locations, watered down pre-buys, and/or post closing conditions in order to transact in 2024,” Monacell said in the IADA report.

Scott Oshman, IADA accredited dealer at Oshman Aviation, said in the report that Q2 and Q3 market conditions and transaction volume have exceeded expectations within the midsize jets, light jets, and turboprop segments.

“Specific to midsize business jets, light business jets, and turboprops, inventory is steadily increasing, but demand and absorption are equalizing the increase in inventory,” Oshman said.

IADA chair Phil Winters said in a news release that while summer months may have been light on sentiment toward business aircraft transactions, most of the dealers and brokers are reporting heightened activity over the past month.

“Although there are more sellers coming to market at a greater rate than buyers, the buyers are absorbing that inventory increase with slightly lower pricing than two years ago,” Winters said. “At the end of the third quarter, we seem to be setting up for an active and healthy fourth quarter of this year.”

Additionally, IADA executive director Wayne Starling said in the release that the insurance marketplace is shifting toward a buyer-driven market, contrasting to earlier trends in 2024.

Days on Market

According to data compiled by AMSTAT, a business aviation market research company, cited in the report, the days on market (DOM) rate for aircraft increased by 55 percent over the past 18 months. This trend has stabilized, however, with the DOM rate undergoing a slight 8 percent increase and staying below the 10-year average.

“IADA members also noted that the anticipated slowdown due to geopolitical tensions and the ongoing election cycle had less impact than expected,” IADA said. “Combined with a recent drop in interest rates, the market is now showing promising signs of renewed activity. Hesitation among buyers due to market uncertainty appears to be diminishing, with IADA members encouraging clients to act swiftly as the fourth-quarter market is expected to accelerate.”

Looking Ahead

The report stated that IADA’s member surveys provide six-month projections for supply, demand, pricing, and dealer willingness to inventory.

Most respondents expect the next six months to show a stable demand and willingness to inventory, except in the large and ultra-long-range jets categories, where projections see both a slight decrease in demand and willingness to inventory.

“A healthy mix of IADA members spanning aircraft financing/leasing, insurance, and sales have reported an increase in business activity in Q3 leading to a more optimistic outlook across the board for the next six months,” the report said. “These experts also believe that buyers have a slightly higher influence on who is driving today’s market while acknowledging that these subtleties can shift based on age, pedigree, and make/model of specific aircraft.”

The post IADA: Encouraging Q3, Possible Surge in Aircraft Sales by Year’s End appeared first on FLYING Magazine.

Currently, Sky Allies Capital offers loans for new and used aircraft, avionics upgrades, engine overhauls, fleet equipment, flight simulators, and more. Sky Allies has a network of more than 100 financial institutions, offering financing solutions for nearly every type of aircraft or equipment in the market. FLYING Financial will continue current Sky Allies Capital programs, as well as create a portfolio of loan and payment solutions built for aircraft owners, pilots, OEMs, dealers, and flight schools.

Meeting the Industry’s Financial Needs

There are two things that all aircraft dealers in the country are focused on—marketing their aircraft to prospective customers and helping prospects find financing solutions to get deals over the finish line. FLYING is planning to create turn-key solutions and packages for dealers and manufacturers that assist in delivering a massive sales funnel of prospects and prepacked financing solutions for ready-to-purchase customers. 

In April, FLYING launched a used aircraft marketplace known as Aircraft For Sale and plans to invest significantly in this area over the coming months. Aircraft For Sale is an online marketplace and a newsprint-style edition that is mailed to every FLYING subscriber monthly, with listings from aircraft dealers, OEMs, and individual aircraft owners.

“If you are selling an aircraft, you should consider listing on Aircraft For Sale, which offers the largest circulation of pilots and aircraft owners of any classified listings product in the world,” said Preston Holland, COO of FLYING Media Group. “We plan on combining aircraft listings, aircraft media content, and a finance solution through a single platform. We hope to create a frictionless buying and selling experience for all aircraft transactions.”

Bringing New Lenders into Aviation

In addition, FLYING Financial plans to expand the network of lenders that Sky Allies works with, including programs designed to educate and inform prospective banks about the opportunities and challenges that exist in aircraft financing. 

“There are too few financing providers and programs serving the industry today because of the limited number of bankers with personal experience in general aviation. We plan on changing this by creating educational programs and assistance for financial institutions that want to grow their aviation finance portfolios or that seek to build one from scratch,” said Craig Fuller, CEO of FLYING Media Group. 

“FLYING has the deepest library of information on aircraft, equipment, and suppliers of any company in the general aviation industry,” Fuller continued. “By combining our content resources and knowledge of the industry, we can help bankers and financial institutions understand the risks and opportunities in general aviation finance. General aviation needs more banks investing in the business, and we plan to develop that.” 

Customers that are currently looking for financing, dealers that wish to help their customers find low-cost and turn-key financing solutions, or suppliers/manufacturers looking for white-label programs should reach out to FLYING Financial at info@flyingfinancial.com.

About FLYING Media Group

FLYING Media Group is the largest aviation media provider in the world, with content spanning 17 aviation-related brands, including FLYING Magazine, Plane & Pilot, KITPLANES, AVweb.com, and Aircraft For Sale. 

With an audience of nearly 3 million monthly visitors and subscribers, the broad reach of the FLYING platform is unmatched by any other aviation media source.

The post FLYING Acquires Aircraft Finance Broker Sky Allies Capital appeared first on FLYING Magazine.

IADA’s dealers make up the top 12 percent of the world’s experts, who handle 46 percent of used business aircraft sales. The group’s accredited dealers buy and sell more aircraft by dollar volume than the rest of the world’s dealers combined. Each year, IADA dealers average more than 1,100 transactions and $10 billion in volume. 

There were 331 sales transactions in the third quarter, which is nine fewer than the 340 reported during the same period in 2021, IADA said Tuesday during a press conference at the National Business Aviation Association-Business Aviation Conference and Exhibition (NBAA-BACE) in Orlando, Florida.

So far this year, IADA said its dealers have completed 929 deals. That is 60 more transactions than during the same period in 2021. Like many other business aviation stakeholders, IADA said its buyers have not been deterred by the rising interest rates in the global economy.

“Obviously, from the international perspective, stability in Europe and Asia are wildcards for the future,” newly installed IADA Chair Zipporah Marmor said in a statement, adding that third and fourth-quarter sales outlook in that region seemed encouraging.

Marmor became an active IADA member in 2018 and was made a board member in 2020. She is vice president of Aircraft Transactions at ACASS, a major customer support service for business aviation located in Montreal, Canada, with offices also in the U.S., Europe, Asia, India, and the Mideast/Africa.

IADA also said that its members indicated via a survey that there was a slight increase in the supply of aircraft inventory. At the same time, they expected demand to stay steady for the next six months, particularly for turboprops and light, mid-size, and ultra-long-range jets.

“Buyers in the market took a summer pause due to bad economic headlines and a small incremental increase in inventory across most all makes/models,” said IADA member Shawn Dinning, a senior partner at Dallas Jet International. “That pause is over, as evidenced by brisk activity and offers across the spectrum of the market.”

All About the Fourth Quarter

“The collective sentiment of IADA members is that traditionally heavy fourth-quarter volume will be driven by the phase-out of 100 percent bonus depreciation in the U.S. It will also be driven by airline cutbacks to smaller cities, spurring first-time buyers, and cash availability for most aircraft purchases,” Marmor said.

Presently, the bonus depreciation tax provision allows businesses to immediately deduct up to 100 percent of the purchase price of eligible assets.

The post IADA Reports Strong Third-Quarter Aircraft Sales appeared first on FLYING Magazine.

In a statement, the executive director of IADA, Wayne Starling, also shared that customers have entered into 223 new acquisitions agreements this quarter, nearly double the amount of customers that did so at the same time last year.

“Global demand is very high,” Starling said, “and, much like the fourth quarter of 2021, that demand is married to constrained inventory levels.” 

However, based on feedback from IADA members, those constraints could soften and provide greater inventory for the market this year.

The report also included insights from IADA members that provided context around some of the market conditions. For instance, David Lee of Soljets predicted that the market would continue to be robust, but that a lack of inventory hurt deal flow. Meanwhile, Gordon Cameron of XOJET said the rising cost of capital could slow buyers’ opportunity to close, thus slowing demand over the next 12 months. 

One cause for concern for members in the report is the indication that owners and operators could face the highest insurance premiums in 20 years, thanks in large part to the Russian-Ukraine conflict. Single-piloted operators could feel the worst squeeze, with panelists at the conference estimating that rates were continuing to climb. 

Also, shoppers for new and used jets could be facing rising prices because of an inventory shortage. 

Industry Experts Weigh In

During a virtual conference that followed the announcement, some aviation experts tried to provide context to the report.

“There are a lot of potential headwinds in the marketplace,” said Brian Proctor, president and CEO of Mente Group. “many things that are going on with international political activities and interest rates, causing a little bit of conservatism, but the numbers speak for themselves.”

Meanwhile, Suzanne Miners-Levy, an Advocate Consulting Legal Group shareholder, said all indications point to the trend that more first-time buyers are coming to the market, even as more traditional commercial travel continues to rebound. What’s more, seasoned buyers showed interest in refreshing their fleet. 

“We are not seeing that cool off, and I’m not seeing a cooling of first-time buyers in this report,” Miners-Levy said. 

As for challenges, Miners-Levy pointed out:

• Increasing insurance rates
• Long maintenance inspection times
• An ongoing short supply of inventory at some facilities

Price Isn’t an Issue, But a Ceiling Exists

Paul Kirby, executive vice president at QS Partners, said that for the first time, customers are deciding that they may be willing to spend beyond market value to buy a new airplane, but only to a certain extent. Using data his company tracks across 60 markets over the past 12 months, Kirby said the customers were willing to go as high as 45 percent above market value.

“We’re starting to see some of those markets finally have a real ceiling. Still, there’s a little bit of a new normal, and that new normal is about 50 percent, or in some cases, 70 to 80 percent higher than before.”

Changing Optics

When Zipporah Marmor, vice president of aircraft transactions at ACASS in Montreal, Canada, was asked to describe her customer demographic, she said that corporations were finally doubling down because the optics around corporate jet ownership were changing.

“We’ve had large corporate clients that before the pandemic were looking to sell, not because they weren’t utilizing the aircraft, but because they didn’t like the optics of ownership—they were facing pressure from shareholders and customers—right now that’s changed,” Marmor said.

The post International Aircraft Dealers Association Members Say Global Demand is Still High appeared first on FLYING Magazine.