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.

Lilium, manufacturer of the seven-seat Lilium Jet, on Thursday announced that Saudia Group—owner of Saudia, the flag carrier of Saudi Arabia and one of the largest airlines in the region—signed a binding sales agreement for the purchase of 50 aircraft, with an option for 50 more. Saudia expects to receive its first jets in 2026.

The deal follows a 2022 memorandum of understanding (MOU) signed by the partners, with plans to establish an eVTOL network across Saudi Arabia.

“The Middle East is a priority for Lilium, and Saudi Arabia will be a very large and exciting market for electric, high-speed regional air mobility,” said Lilium CEO Klaus Roewe.

According to Lilium, the purchase agreement is the largest of its kind for the Middle East-North Africa (MENA) region. Archer Aviation, an eVTOL air taxi manufacturer, earlier this year signed a nonbinding agreement with the United Arab Emirates’ Air Chateau for 100 aircraft.

The signing of Lilium’s deal with Saudia, which includes payment schedules, delivery timelines, performance guarantees, and provisions for maintenance, spare parts, and repairs, was attended by Michael Kindsgrab, Germany’s ambassador to Saudi Arabia.

Saudia will operate the jets through its Saudia Private subsidiary, while Lilium will provide fleet maintenance and support through its recently launched customer service offering. The airline will also assist the manufacturer in certification efforts with Saudi Arabia’s General Authority of Civil Aviation (GACA).

“The eVTOL jets are revolutionizing guest transportation,” said Ibrahim Al-Omar, director general of Saudia. “Their unique vertical takeoff and landing capabilities open up entirely new routes. Imagine traveling up to [108 miles] at speeds of [155 miles] per hour, saving valuable time compared to traditional options. This technology also tackles traffic congestion head-on. Business travelers and exhibition attendees will benefit tremendously from the ease and speed of electric aircraft, allowing them to seamlessly attend and participate in events.”

Al-Omar said use cases for the aircraft will include tourism, sports, entertainment, business conferences, and events out of Saudia hubs in cities like Riyadh and Jeddah.

The companies said they may even ferry worshippers to Mecca during the Hajj and Umrah pilgrimages, which attract millions every year but frequently result in deaths due to heat and crowd density. Lilium and Saudia expect the eVTOL jets will alleviate some of that congestion and reduce travel times by as much as 90 percent.

Other eVTOL manufacturers looking to fly in the country include Joby Aviation, Bristow Group, and Volocopter.

According to Lilium, the company’s order portfolio now includes more than 100 firm orders, 76 options, and hundreds of tentative orders under MOUs. Customers include ASL Group, PhilJets, and UrbanLink Air Mobility, a newly formed company that plans to fly the Lilium Jet in Florida, California, and the Caribbean.

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Electron Aerospace, the maker of the 100 percent electric Electron 5, on Thursday announced an undisclosed but “significant” number of aircraft orders from business aviation provider Air2E and private air taxi operator Hopscotch Air. The companies signed a memorandum of understanding (MOU) committing to explicit payment schedules.

Air2E operates primarily in Germany, not far from Electron’s headquarters in the Netherlands. Hopscotch is licensed to fly in the U.S. and Canada. According to Electron, the fresh orders bring the company’s sales pipeline to an estimated $213 million.

“Securing orders from two pioneers in the regional air mobility sector like Air2E and Hopscotch Air affirms the market fit of our Electron 5 aircraft,” said Marc-Henry de Jong, co-founder and chief commercial officer of Electron.

Electron’s flagship aircraft is the zero-emission Electron 5, designed for one pilot, four passengers, and their luggage. The firm anticipates first deliveries in 2028 following certification with the European Union Aviation Safety Agency (EASA) in 2027. Beyond passenger and cargo transport, Electron says the aircraft could be used for pilot training and medical evacuation.

Compared to traditional internal combustion engine (ICE) aircraft, Electron 5’s twin-engine, battery-electric-drive system can slash operating costs by more than half, the company says. The propulsion system also limits noise to around 55 dB, quieter than a vacuum cleaner.

“The reduced operating costs of the Electron 5 will allow us to significantly broaden our customer base, providing more affordable and accessible air travel alternatives,” said Andrew Schmertz, CEO of Hopscotch.

Electron says its aircraft is optimized for “short intra-European hops.” With current battery technology, it has a maximum range of about 466 sm (405 nm) and top speed of 188 knots at 10,000 feet, making it ideal for regional flights, such as between New York City and Washington, D.C.

According to the company, aircraft with the same mission profile in the U.S. and EU typically have a range less than 311 sm (270 nm), more in line with Electron 5’s operating range of 310 sm.

An updated Electron 5 design, revealed in March, deploys some biomimicry and is inspired by the albatross, which is considered to be one of the most efficient flying animals on earth.

“Taking inspiration from the albatross, our Electron 5 features an aerodynamically efficient body, robust wings, and windows that mimic the bird’s vigilant eyes,” said Alexander Klatt, head of design at Electron.

One newly added feature is an easily accessible cargo door, which the company says is “unheard of” for an aircraft of Electron 5’s size. The cargo door allows the aircraft to accommodate up to four passengers or 1,100 pounds of cargo. In addition, the manufacturer claims Electron 5 has the largest windows in its class. These wrap around the aircraft to provide 180-degree views for the pilot and passengers.

Electron has stated Europe will serve as its primary market. So far, the firm has an agreement with the Netherlands’ Twente Airport (EHTW) to launch zero-emission flights in 2027. It claims it will be able to fly passengers from Twente to London, Paris, or Berlin within two hours.

Electron also has a strategic partnership with South Korea’s Mint Air, which placed an order for ten Electron 5 models and intends to become an operator and official reseller in the country.

With Hopscotch now getting in on the action, it appears North America will serve as another future market.

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The post Electric Aircraft Manufacturer Electron Secures Orders From Air2E, Hopscotch appeared first on FLYING Magazine.

In its second-quarter report released Tuesday, the IADA said market conditions and the near-term outlook for business aircraft sales, leasing, and financing have improved compared with the first quarter. Following “exceptionally tight” supply conditions spanning more than two years, the group said, market watchers anticipate a general, favorable loosening.

• READ ORE: Business Jet Sales Up in 2022, IADA Reports

“Indications are that customer interest remains strong, with plentiful inquiries,” the IADA said in the report. “Macroeconomic and geopolitical factors aside, the current market and near-term sales outlook for business aircraft and related products and services is solid.”

For quarterly reports, the group surveys its more than 1,000 members, including dealers, brokers, OEMs, and providers of products and services. Members share their assessments of current and projected market conditions, and the results are aggregated on a scale of 1 to 5, with 5 representing the best conditions ever and 1 reflecting the worst.

• READ MORE: IADA, 4AIR Partnership Focuses on Aircraft Environmental Impact

Respondents said their outlook regarding the business aircraft sales market improved to an average score of 3.8 compared with 3.7 during last year’s second quarter. Their projection for business aircraft sales over the next six months averaged 3.6, up from 3.3, and their forecast for the business aircraft financing and leasing market rose to 3.3 from 2.7. The group projected 3.3 for the business aircraft insurance market, a new measure not taken during the same period last year.

Overall, the message from IADA officials during a live presentation of the report was that buyers’ options have broadened, encouraging them to spend more time shopping for aircraft with the features they want while feeling somewhat less pressure to purchase whatever is available.

Zipporah Marmor, IADA’s chairperson, said aircraft shoppers clearly feel less harried than they did a year ago. As a result, Marmor said “deals are taking a little bit longer, but we are leaning toward that balanced market.”

The post IADA Reports Shift in Business Aircraft Market in Buyers’ Favor appeared first on FLYING Magazine.

Many of us, however, do not give resale a whole lot of thought when negotiating the best possible purchase agreement. Often we are so excited by the thought of having our own aircraft and no longer having to share with fellow students or flying club members that we forget the day could come when we want to sell.

• READ MORE: The New Owner: The Power of Networking

When that day arrives, we need to think about how to approach the sale and how to use our personal networks and other resources to attract potential buyers. I mentioned personal networks first because I believe they are the best resources many of us have. While advertising your aircraft on aviation sales websites with good photos and a thoughtful, honest description is a good way to get nationwide attention, there also are advantages to marketing locally.

Over the years, I have looked at dozens of aircraft for sale at my home airport and at others nearby. When I was a student, my instructor often would say, “Let’s walk over to the hangars.There’s an airplane for sale that you should see.”

When I began shopping, I asked him, other pilots and local mechanics a lot of questions about different models they had owned or maintained. They were happy to talk and frequently recommended other people with opinions worth considering. And, of course, many knew of airplanes that were for sale, officially and unofficially, and would tell me which ones they thought were “good ones” and which were “dogs.” Typically, they also had the seller’s phone number handy.

I considered several of these aircraft, and while it took me a long time to find the right one, the local search was illuminating. One day my instructor showed me a Mooney M20 that belonged to another former student. She was moving across the country and wanted to sell. The airplane was beautiful, with newer paint and interior. Sitting in it for 10 minutes, however, confirmed that the seating position would not work for me.

With that visit I was able to remove Mooney’s from my wish list, which seemed efficient. The owner eventually changed her mind, took the airplane out west with her, and still was flying it the last time I checked. The other candidates found buyers fairly quickly.

I think that, deep down, pilots want to believe their first airplane can be their last if they do well in the selection process. If you find a high-performance piston single that is much faster than the trainer you flew previously, with enough useful load to carry your family and baggage and sufficient range to reach your favorite vacation spot, what more could you want?

• READ MORE: Finding Your Ideal Aircraft Without Remorse for Buyer or Seller

I can think of a few things, like more speed and greater range, to reach that new favorite vacation spot you and your family discovered while flying frequently in your new airplane. How about pressurization, so you can fly higher, faster, and make the most of your recently acquired instrument rating.

We bought our Commander, Annie, from a partnership of three pilots, two of whom were switching to Cirrus SR22s. For a few years, Annie had been fast enough—but not anymore. I spoke with one of the sellers last week and asked him how he liked the Cirrus. He said he misses the Commander’s comfort and handling—which is a polite thing to say—but loves the SR22’s speed. “Now those 500 nm trips seem to go by in no time,” he said. Annie still takes a while to go that far.

We found our airplane online but within a 25-mile search area. If we were to sell it, we would focus again on the local market and try to get it done by word of mouth. But we are not selling, though we understand why many do. Temptation is everywhere.

My wife, sons, and I have been traveling together in Annie for less than six months, and already we cannot stop talking about turboprops. Our airplane is a perfect fit for us, but every time we land at a new destination, without fail, there is a gleaming TBM, Piper M600, or other turbine single on the ramp.

Next come the questions like, “How fast will that one go?”

The post Prepare to Sell Your Aircraft By Tapping Local Resources appeared first on FLYING Magazine.

At Palexpo and the Geneva International Airport (LSGG) on Monday, the show opens for the media—and FLYING already has the scoop on a few key tidbits. We can’t say anything more, but watch this space.

For the opening session on Tuesday morning, be prepared to race into action with keynotes from the Formula 1 racing world: Susie Wolff, of F1 Academy, and Toto Wolff, team principal of the Mercedes-AMG Petronas F1 team, will talk about how pressure drives innovation in the sport. There’s a definite corollary between F1 and business aviation in that response to a challenge.

And the challenges remain as the show opens—coming as the industry continues to make its own drive toward net-zero emissions. The race is on, indeed. At EBACE, the Sustainability Summit will focus on that commitment to achieve the  International Civil Aviation Organization (ICAO) long-range goal by 2050.

• WATCH: Learn More About the Sustainability Summit

Many exhibitors have taken the sustainability pledge—managing their practices not just in manufacturing and service facilities but also at the show itself. Look for natural materials, water conservation, and energy management as a theme.

But really, you want to see the airplanes, right? In addition to new aircraft on display, look for the recently redesigned Dassault Falcon 10X mock-up, which will make you truly feel like you’re in the real thing. FLYING had a sneak peak of the modular design before it traveled to the show when we visited the company’s facilities at Le Bourget, France, last month.

• WATCH: Dassault Falcon 10X MockUp

Sustainability highlights the ramp action too, with VoltAero’s Cassio 330 hybrid-electric demonstrator there to explore—one of several examples of advanced air mobility that proposes to transform the short-haul mission.

The show runs through May 25, and there’s still time to register.

The post A Look Ahead at EBACE 2023 appeared first on FLYING Magazine.

Cirrus said it plans to invest $13 million in the new facility, which will have a total of 45,000 square feet of space, including a 15,000-square-foot service hangar, 15,000-square-foot storage hangar, a flight simulation space, eight shade canopies, a retail store, and a lounge for customers.

• READ MORE: Cirrus Marks 9,000th SR in 2023 With Limited Edition

“The Dallas Metroplex is a central location for many of our SR Series and Vision Jet owners,” said Todd Simmons, president of customer experience at Cirrus. “With this new expansion at Cirrus McKinney, we are excited to continue enhancing the aircraft ownership experience for our current owners and also create an environment to introduce more people to the benefits of personal aviation.”

Currently the Cirrus McKinney operation employs more than 50 people, Cirrus said, adding that it “plans to continue adding more career opportunities in the future.” Cirrus has long been a leader in customer experience among general aviation manufacturers. In March the company launched an app to help shoppers configure their aircraft, and last month Cirrus marked the sale of its 9,000th SR series aircraft. 

• READ MORE: Cirrus Reveals Plans for a Huge Next-Gen Aircraft Development Center

The post Cirrus Aircraft Begins Work On New Dallas Facility appeared first on FLYING Magazine.

The Brazilian manufacturer said its agricultural aircraft unit expects sales for the full year to be “similar to or better than 2022,” when it sold 66 aircraft. The company also said that given a backlog of orders over the past 12 months, it is scheduling new orders for production and delivery next year.

In terms of deliveries, Embraer said it expects to deliver 65 of the Ipanema airplanes this year, compared with 55 in 2022 and 42 in 2021. The company noted that delivery volume is highest during the second half of the year due to the market segment’s seasonality.

“We have experienced three consecutive years of growth in the volume of aircraft delivered, which highlights the very high confidence that our customers and operators have in the Ipanema 203,” said Sany Onofre, Embraer’s Ipanema program manager. “By combining high technology and tradition, the Ipanema 203 remains a benchmark of high productivity and low operating costs.” 

Production of the initial version of the aircraft began in 1969, and last year the Ipanema series reached the milestone of 1,500 aircraft delivered. Embraer developed an ethanol-powered version of the aircraft in 2004 after customers began experimenting with the fuel, which is widely available in Brazil.

In 2021, Embraer flew an electric-powered version of the 203 as part of a larger project to develop electric power for future aircraft.

The post Embraer Reports 38 Percent Sales Increase For Ipanema 203 Aircraft appeared first on FLYING Magazine.

American Airlines had its share of these challenges yet still reported profitable quarters. In fact, during the company’s third-quarter earnings call on October 20, American’s CEO Robert Isom eagerly cited a third-quarter net income of $483 million from record quarterly revenue of $13.5 billion. Isom claims this sets a new record for any quarter in the company’s history.

• READ MORE: Major Airlines Rake in Record Q3 Revenues, Still Short on Workforce

Despite talks of an impending recession, the airline continues to execute its plan to pay down approximately $15 billion of total debt by the end of 2025. It also opted to make key investments, such as its October 31 announcement to form a new partnership with Spartan College of Aeronautics and Technology. This collaboration provides cadets a career pathway resulting in an aviation degree and restricted airline transport pilot (R-ATP) certificate at 1,250 flight hours. On October 24, American also announced a new partnership with Aviation Institute of Maintenance (AIM) that provides aspiring aviation maintenance technicians (AMTs) with a direct career path to the airline.

Brokers Don’t See Buyer’s Remorse

When it comes to how aircraft charter and brokerage businesses are faring, data compiled from industry organizations, such as the International Aircraft Dealers Association (IADA), provide some indications. At the 2022 NBAA Business Aviation Convention & Exhibition (NBAA-BACE), IADA Chair Zipporah Marmor expressed optimism after publicly releasing their third quarter numbers.

“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., airline cutbacks to smaller cities spurring first-time buyers, and cash available for most aircraft purchases,” she said.

Pointing to the organization’s 2022 Third Quarter Market Report, IADA’s executive director Wayne Starling reiterated the membership’s optimism despite what’s happening with key financial triggers. “Our buyers and sellers are somewhat immune to current increases in interest rates. Over 60 percent of our transactions are paid in cash,’’ he noted in the IADA report.

• READ MORE: What Would a Recession Mean for Aviation?

Factors outside the U.S. could slow down this buying activity, according to Marmor. “Obviously, from the international perspective, stability in Europe and Asia are wildcards for the future. However, used aircraft sales were strong in the third quarter, and the fourth quarter outlook is encouraging,” she said.

Paul Cardarelli, vice president of sales at JetNet, echoed IADA’s view of a solid buying momentum. “Inventory of business aircraft has gone up 4 percent with extremely limited quantity,’’ he told FLYING.   

JetNet reports 10,800 light jets in service, with 520 of them for sale. Medium and large jets have 263 and 321 on the market, respectively. Cardarelli said the fourth quarter is historically busy, as buyers take advantage of bonus depreciation. “The fourth quarter will be pretty robust again,“ he noted.  

The COVID-19 pandemic brought many first-time buyers looking for options outside of airline travel, Cardarelli said. “Some of that demand has been satiated,” as airlines are beginning to restore their operations to somewhat near normal levels, he said. Cardarelli added that “demand will continue to be strong” but will not exceed what we saw in 2021, once OEMs begin to catch up on new aircraft deliveries. 

An Entrepreneur’s Perspective

Small business entrepreneurs face different potential economic stresses, according to Alfredo Diez, founder and CEO of Global Atlantis Group, and who also runs Atlantis Flight Academy and SkyJet Elite, a Part 135 jet charter operator.

The charter market continues to grow, according to Diez. “One of the signs of growth is percent of inventory,” he said. “The pre-pandemic ratio was about 30 percent of inventory. Now, it’s between 2 and 3 percent. Demand is not a problem; it’s more about finding the right inventory to operate our flights.” 

A recession likely won’t result in a significant decrease in his charter business revenue, he said.

On the flight training side, the Spanish-born entrepreneur  also expressed confidence that this segment will maintain an unprecedented pace, thanks to the ongoing pilot shortage.

“The airlines keep hiring at record levels, and Boeing’s commercial outlook supports a steady stream of new hires for the next eight to 10 years,” Diez noted. He added that many countries affected by the pandemic are opening up again, and this is allowing him to grow his large base of international flight cadets.

Diez recognizes that while the U.S. aviation market is solid for the time being, a strong dollar means a greater financial strain on those living in other countries and wishing to train here. 

“We depend on resources primarily from family members supporting their aspiring son or daughter,” he said. “This will adversely affect them, so we’re always looking for ways to help finance their career dreams.”

The post Most Aviation Businesses Aren’t Worried About a Recession, for Now appeared first on FLYING Magazine.

A: You are in luck, vintage aircraft like the Aeronca Champ have very knowledgeable groups—known as type clubs—that can provide a plethora of information. At EAA AirVenture they occupy the hangar at the entrance to Vintage Aircraft Parking. Each club takes a table (or two) and volunteers are there to answer questions about the designs they represent.

Away from AirVenture you will find many of these clubs online: do a search for “aircraft type clubs” and find the design you seek. They often have very knowledgeable individuals who can answer questions about what to look for in (insert name of aircraft desired here), challenges with maintenance, where to get spare parts, how to care for the aircraft, who can provide transition training, insurance questions, who provides tailwheel training (if appropriate) in that design, quirks of the aircraft handling, who is selling one, who is buying one, etc.  Good luck!

Do you have a question about aviation that’s been bugging you? Ask us anything you’ve ever wanted to know about aviation. Our experts in general aviation, training, aircraft, avionics, and more may attempt to answer your question in a future article.

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