IADA Archives - FLYING Magazine https://cms.flyingmag.com/tag/iada/ The world's most widely read aviation magazine Tue, 22 Oct 2024 13:36:56 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 IADA: Encouraging Q3, Possible Surge in Aircraft Sales by Year’s End https://www.flyingmag.com/aircraft/iada-encouraging-q3-possible-surge-in-aircraft-sales-by-years-end/ Tue, 22 Oct 2024 13:36:53 +0000 https://www.flyingmag.com/?p=219868&preview=1 Aircraft purchases expected to take off as election season nears a close.

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The International Aircraft Dealers Association (IADA) released its third-quarter market report for 2024 on Monday analyzing the current aviation marketplace.

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.

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.”

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IADA Reports Pre-Owned Business Aircraft Market Stable in 2023 https://www.flyingmag.com/iada-reports-pre-owned-business-aircraft-market-stable-in-2023/ Mon, 22 Jan 2024 22:34:21 +0000 https://www.flyingmag.com/?p=193487 The market for pre-owned business aviation aircraft further stabilized through the end of last year, according to the association.

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The market for pre-owned business aviation aircraft further stabilized through the end of last year, according to the International Aircraft Dealers Association’s (IADA) 2023 fourth-quarter market report.

IADA reported seeing “a subtle shift toward becoming a buyers’ market, with higher inventory and more reasonable prices.” The group expects a steady start to the new year but noted potential trouble spots, including a backlog carryover related to previous supply chain issues, disruptions because of global unrest, and uncertainties associated with a presidential election year in the U.S. The organization stated that the 2023 stabilization matched its previous predictions for the time period.

“IADA members have been predicting a more stable marketplace for over a year, and the 2023 market performed as expected,” said IADA chairman Phil Winters. “Our quantitative and proprietary sales data shows that buyers and sellers are coming together with regard to asking and offering prices, a positive change from the overheated conditions we’ve seen since the onset of the pandemic.”

IADA’s quarterly report data comes from a survey sent to more than 1,000 of its members, including association-accredited dealers and their certified brokers, OEMs, and IADA products and services members. Dealers and brokers surveyed reported completing 554 pre-owned aircraft transactions during the fourth quarter of 2023 compared to 470 in Q4 2022. Year-over-year numbers saw similar improvement.

“While annual business jet resale volume for IADA dealers was about one and a half percent higher in 2023, a more telling statistic showed an increase of 123 agreements to sell exclusively and 149 fewer new acquisition agreements, compared to 2022, reflecting more sellers than buyers,” said IADA executive director Wayne Starling. “Overall, our dealers closed 1,422 pre-owned biz aircraft transactions in 2023, compared to 1,399 in 2022.”

Of its survey respondents, IADA found that three-quarters are expecting midsize and larger jet pricing to fall and inventories to grow over the next six months. Eighty-five percent report believing that demand across aircraft size categories will remain stable or drop slightly over the first half of the year.

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IADA Predicts Larger BizAv Market Ahead https://www.flyingmag.com/iada-predicts-larger-bizav-market-ahead/ Tue, 24 Oct 2023 22:58:27 +0000 https://www.flyingmag.com/?p=186301 The International Aircraft Dealers Association (IADA) says it sees a significantly larger market over the next six months for business aviation aircraft.

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The International Aircraft Dealers Association (IADA) says it sees a significantly larger market over the next six months for business aviation aircraft.

The association stated in its recently released third-quarter 2023 market report that many of its members did not experience the typical sales slowdown over the summer, with some noting strong transactions and activity. Overall, according to IADA, its members are anticipating a strong fourth quarter.

“The good news is that inventories are expanding, price inflation has slowed if not slightly slipped, and supply chain quirks and bottlenecks are being ironed out industrywide,” said IADA executive director Wayne Starling. “Additionally, MROs and FBOs are expanding to meet the needs of aging fleets. Those factors, coupled with massive new options from fleet buyers, could be signals that supply and demand are rebalancing for a larger post-pandemic marketplace.”

According to IADA, the six-month outlook for the preowned business aircraft market has slipped in the face of “higher interest rates, somewhat softer pricing, and lingering concerns about the potential for an economic recession in the U.S.” The Q3 report found that there were 309 used aircraft deals closed in the quarter with 257 aircraft sales under contract. Of those, IADA reported that 66 were sold below asking price.

For year-to-date numbers, IADA dealers closed 853 transactions through September. In 2022, 929 transactions were completed over the same time period. As for new acquisition agreements, 410 were signed through Q3 compared to 519 through the third quarter of 2022. So far this year, 191 aircraft have been sold below asking price compared to more than 59 in the first nine months last year.

“Generally, pricing is expected to reflect slight decreases, and supply for sale is predicted to be slightly increased across all categories,” IADA said. “Demand projections are expected to be stable for turboprops and light jets, with stable to slightly decreased demand for mid- and larger-size jets.”

IADA gathers data for its quarterly reports via a survey sent to more than 1,000 members, including association-accredited dealers and their certified brokers, OEMs, and IADA products and services members. IADA reports that its dealers handle an estimated 50 percent of used business aircraft sales and average more than 1,300 transactions and $11.8 billion in volume annually.

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IADA Foundation Awards 2023 Business Aviation Scholarships, Grants https://www.flyingmag.com/iada-foundation-awards-2023-business-aviation-scholarships-grants/ Thu, 12 Oct 2023 20:38:01 +0000 https://www.flyingmag.com/?p=184923 Intended for students and young professionals, the funding aims to support future leaders in the business aviation industry.

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The IADA Foundation has awarded several scholarships and grants designed to support future leaders in the business aviation industry. The foundation, which is a 501(c)(3) nonprofit group affiliated with the International Aircraft Dealers Association (IADA), offers the funding on an annual basis.

This year’s awards, valued at $5,000 each, included scholarships for six university students and grants for eight young professionals. Scholarship money goes to support the students’ college studies while grant funding goes toward education, learning, and leadership opportunities.

“These supersmart young business aviation pros and students who are building their business aviation resumes are the future of the resale industry, and the IADA team wishes them very rewarding careers,” said IADA executive director Wayne Starling. “We welcome their progress as they develop and hone their professional skills.”

IADA business aviation scholarships, which take the form of monetary awards from $1,000 to $5,000, are designed specifically for students planning careers in corporate aircraft-related sales, marketing, finance, legal, and insurance fields. The foundation noted that applications are open to those attending colleges and universities that offer coursework in corporate aviation management, aerodynamics, aircraft systems, aviation safety, finance, business marketing, economics, and aviation business or management.

To be eligible, an applicant must be a full-time undergraduate student enrolled in a minimum of 12 credit hours per semester or a graduate student with a cumulative GPA of 3.0 or higher. Applications open annually in June and close September 1.

Grants are awarded to young professionals employed by IADA members in the business aviation resale industry.

Further information is available at https://iada.aero/scholar.

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IADA Reports Shift in Business Aircraft Market in Buyers’ Favor https://www.flyingmag.com/iada-reports-shift-in-business-aircraft-market-in-buyers-favor/ Tue, 18 Jul 2023 21:00:27 +0000 https://www.flyingmag.com/?p=176008 Aircraft dealer group sees inventories growing in used market, giving shoppers more choices.

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Inventories of used aircraft appear to be growing as the overall market returns to a state of balance in which sellers and buyers have roughly equal influence, according to the International Aircraft Dealers Association. This represents a significant shift from the past year or so.

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.

“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.

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.”

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Preowned Business Jet Market ‘Rebalancing,’ Trade Group Says https://www.flyingmag.com/preowned-business-jet-market-rebalancing-trade-group-says/ Mon, 17 Apr 2023 19:39:40 +0000 https://www.flyingmag.com/?p=170220 The International Aircraft Dealers Association said its members are optimistic about the next six months of the business aircraft market compared with late 2022.

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Falling off from a 2022 high, experts are predicting tighter conditions for aircraft sales in 2023, as the preowned business jet market is “rebalancing.”

In its first quarter report, the International Aircraft Dealers Association (IADA)—a trade association that promotes the growth and public understanding of the aircraft resale industry— noted that its members are optimistic about the next six months of the business aircraft market compared with the fourth quarter of 2022. 

IADA’s dealers consist of the top 12 percent of the world’s experts who handle 46 percent of used business aircraft sales.

Results from IADA’s first quarter report show IADA accredited dealers closed 239 transactions, compared with 288 in the same period of 2022, and 213 in the first quarter of 2021.

Additionally, IADA dealers ended quarter one with 197 aircraft under contract, compared to 259 a year ago, and 248 in the first quarter of 2021. According to IADA, results from its first quarter survey suggest that the market is rebalancing with a return to more rational pricing and valuations with continuing customer interest.

“Even though macroeconomic forces, geopolitical tensions, and the latest banking crises flood the headlines, customers appear to be little swayed from their interest in buying, selling and flying business aircraft. While 2023 activity levels—aircraft sales, flight activity, MRO shop demand—have generally slipped back from record highs in 2022, the market for business aviation products and services remains vibrant,” IADA noted in a press release.

Chad Anderson, CEO of IADA-accredited dealer Jetcraft, said he was surprised by the number of acquisitions confirmed in 2023. He predicted that the early part of 2023 would be a bit slower, but the latter part of 2023 is looking even more active.

Byron Mobley, president of Wetzel Aviation, Inc., noted the “feeding frenzy is over. The market has slowed to a balanced pace, yet with lots of inquiries and activity. Inventory is limited, but not like last year.”

“Our organization foresees a continuation of relatively tight market conditions through 2023, driven by customers who cannot or will not wait two or more years to receive their next aircraft,” said IADA executive director Wayne Starling.

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Business Jet Sales Up in 2022, IADA Reports https://www.flyingmag.com/bizjet-sales-up-in-2022-iada-reports/ Wed, 18 Jan 2023 20:55:15 +0000 https://www.flyingmag.com/?p=165341 Industry leaders reflect on the market over the past year.

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The sale of business jets ended on a high note in 2022 but don’t expect that climb to continue, say the senior leaders of the International Aircraft Dealers Association (IADA).

Sales by the Numbers

The Fourth Quarter IADA Market Report for accredited dealers and certified brokers reported 1,399 used aircraft sales transactions that closed in 2022, which is a 2 percent increase year over year from 2021, which saw sales of 1,370 jets.

IADA adds that the resale volume represents $9.3 billion, or roughly $8 million per transaction, with December being the busiest month of the year, with 259 sales reported.

While it was nice to end the year on a high note, industry officials predict the market will likely level out over the first half of 2023.

IADA executive director Wayne Starling reported IADA members “have slightly more modest expectations than they did a year ago for the aircraft resales market over the next six months.”

Austin Bass, market research manager for accredited dealer OgaraJets in Atlanta, concurred, stating, “Over the next six months, I believe we will continue to see market normalization. I anticipate a more balanced market, with the majority of aircraft beginning to depreciate at slightly higher than pre-pandemic levels,” Bass added, “Pricing for high-time and legacy aircraft will likely fall the most, while pricing for newly delivered aircraft will likely benefit from OEM backlogs.”

IADA members predict that the next six months should bring a slight increase in inventory and stable outlooks for supply for all business aircraft segments, including turboprops, light jets, mid-size jets, and large and ultralong-range business jets.

IADA is a professional trade association formed more than 30 years ago to promote the growth and public understanding of the aircraft resale industry. IADA’s dealers consist of the top 12 percent of the world’s experts who handle 46 percent of used business aircraft sales.

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IADA, 4AIR Partnership Focuses on Aircraft Environmental Impact https://www.flyingmag.com/iada-4air-partnership-focuses-on-aircraft-environmental-impact/ https://www.flyingmag.com/iada-4air-partnership-focuses-on-aircraft-environmental-impact/#comments Mon, 28 Nov 2022 19:07:39 +0000 https://www.flyingmag.com/?p=162396 The partnership will allow clients of IADA members to access a free carbon assessment and exclusive discounts on voluntary programs and regulatory monitoring and compliance services. 4AIR offers a streamlined reporting program for owners and operators to track their environmental footprint.

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The International Aircraft Dealers Association (IADA) is making it easier for its members to understand their environmental impact. Under a new partnership with sustainability solutions provider 4AIR, IADA-member aircraft owners will now have access to a free carbon assessment and exclusive discounts on voluntary programs and regulatory monitoring and compliance services, IADA said.

Clients can also use 4AIR’s web-based calculator to measure their carbon footprint, giving aircraft purchasers greater visibility of the carbon impact of their potential purchase, according to the organization. 

“The partnership with 4AIR is a statement that the leaders in the business aviation resale industry place importance on sustainability,” David Monacell, IADA chair emeritus and partner in CFS Jets, said in a statement Monday.

Monacell said the new partnership gives IADA’s accredited dealers another tool to “be the very best counselors available for buyers and sellers of business aircraft.”

The partnership will be a useful tool during aircraft purchases, according to 4AIR president Kennedy Ricci.

“With today’s growing scrutiny of private travel and its impact on the environment, it’s increasingly important to be able to assist buyers and sellers answer questions about prospective aircraft and their environmental impacts,” Ricci said.

4AIR offers a streamlined reporting program for owners and operators to track their environmental footprint. It aims to simplify voluntary and compliance reporting and align with industry standards set by the International Civil Aviation Organization (ICAO) and the Greenhouse Gas Protocol (GHG Protocol).

“We provide an avenue to help those looking to make meaningful, verified, and documented steps in understanding and minimizing their environmental footprint. IADA and its members are helping lead the industry to a sustainable future,” Ricci said.  

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Boeing Business Jets Joins IADA as Latest OEM Member https://www.flyingmag.com/boeing-business-jets-joins-iada-as-latest-oem-member/ Tue, 15 Nov 2022 20:57:27 +0000 https://www.flyingmag.com/?p=161658 The demand for transport category business jets around the world nears the pre-pandemic high, according to Boeing.

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Boeing Business Jets (BBJ), a unit of Boeing (NYSE: B.A.), is now a member of the International Aircraft Dealers Association (IADA), the business jet organization announced Monday.

The move makes the aircraft manufacturer the most recent OEM to join IADA’s fledgling network of accredited aircraft dealers.

The news comes just weeks after BBJ announced during the National Business Aviation Association’s Business Aviation Convention and Exhibition (NBAA-BACE) in Orlando that since April 2020, the demand for transport category business jets around the world has increased to near the pre-pandemic high.

Upon joining IADA, BBJ President Erika Pearson said that BBJ was happy to be a part of the trade group, adding that “the organization of airplane transaction experts has become a force in promoting transparency and integrity in aircraft sales.” Pearson also shared that BBJ hoped to work with other IADA members to support customers’ aircraft buying and selling.

Boeing Business Jets officials said during NBAA-BACE that nearly 75 percent of all widebody business jets sold in the last 21 years had been Boeing Business Jets, including the 787 Dreamliner and the Boeing 777. Overall, Boeing said it sold more than 260 transport category business jets to customers including heads of state, private users, and some corporate customers. 

Additionally, it shared that it secured four orders for BBJ 737 MAXs, with deliveries underway.

IADA Executive Director Wayne Starling welcomed the OEM to IADA and said, “our OEM members are the world’s leading business jet manufacturers that have established exceptional professional global aircraft sales networks.”

Dealers Expect Busy Fourth Quarter

In their third-quarter update, IADA reported 331 sales transactions, which is nine fewer than the 340 reported during the same period in 2021. At the time of reporting in October, IADA said its dealers completed 929 deals, 60 more transactions than during the same period in 2021.

Fourth quarter sales are expected to be especially active, driven by the phasing out of the 100 percent bonus depreciation tax provision in the U.S., according to IADA chair Zipporah Marmor.

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

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Most Aviation Businesses Aren’t Worried About a Recession, for Now https://www.flyingmag.com/most-aviation-businesses-arent-worried-about-a-recession-for-now/ Tue, 01 Nov 2022 15:01:48 +0000 https://www.flyingmag.com/?p=160291 Despite forecasts of a recession in the coming year, segments of the aviation industry are keeping a positive outlook.

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The airline industry has experienced a trying year. Surges in passenger demand, staff shortages, and bad weather created flight delays and cancellations during peak travel times. 

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.

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.

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.

Aircraft transactions maintain their momentum despite talks of a recession. [Courtesy: International Aircraft Dealers Association (IADA)]

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.

Flight training is strong, thanks to demand from the airlines. [Courtesy: Global Atlantis Group]

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.”

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