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IADA: Preowned Bizjet Market Showing Signs of Regaining Equilibrium from Industry Highs

IADA: Preowned Bizjet Market Showing Signs of Regaining Equilibrium from Industry Highs2Q Market Report Released

USA, July 18, 2022 -- After incurring heated sales volume for two years, the global preowned business aircraft market is beginning to show signs of stabilizing. According to the second quarter 2022 market report from the International Aircraft Dealers Association (IADA), 598 aircraft sales transaction were recorded by the group during the first half compared to 529 during the same period the prior year, a 13 percent increase.

The increase was spurred by a robust first quarter in 2022, with the second quarter showing only a small decline of six aircraft transactions to 310 total, compared to the same period in 2021 when 316 deals were recorded. Overall, the 2022 year-to-date sales numbers still reflect a healthy market, even higher than the record setting tempo in 2021.

Leading Indicators Stabilizing

“While we expect to see a strong market for the balance of this year, our dealers and transaction specialists are experiencing a bit of softening in some of the leading indicators for our industry,” said IADA Executive Director Wayne Starling. “While closed deals in the second quarter of 2022 remained healthy, a decrease in acquisition agreements and deals under contract indicate the market is returning to normal levels from the frenzied pace of 2021,” he added.

Virtual Press Conference Tomorrow

The complete IADA 2022 Second Quarter Market Report will be presented by IADA’s experts at a virtual press conference tomorrow at 11 a.m. EST. Presenters include:

David Monacell, Partner, CFS Jets; IADA Chair
Phil Winters, VP Aircraft Sales & Charter Management, Western Aircraft; IADA Treasurer
Jim Blessing, President, AirFleet Capital Inc.
Michael Sylvester, SVP Sales, EJM
Michael Amalfitano, President and CEO, Embraer Executive Jets; IADA OEM Board Member

Register online at https://www.crowdcast.io/e/2022q2iadamarketreport

Why Did IADA Create This Report?

IADA began monthly tracking of sales metrics for preowned business aircraft in April 2020 due to the volatile market conditions caused by the pandemic. Transaction volume by member dealers reflects the overall health of the used aircraft market because its dealers buy and sell more aircraft by dollar volume than the rest of the world’s dealers combined. This global impact and breadth of data help to make the IADA Market Report the go-to review of the used business aircraft market. The Second Quarter 2022 IADA Market Report is available prior to the press conference atAircraft Exchange.

What Are IADA’s Members Saying?

Two key factors inform the report: First is actual sales data supplied by IADA members. IADA dealers submit monthly transaction and activity reports to IADA. Second is the IADA members' market perspective, taken from a survey of the entire IADA membership. Their comments add context to the report:

Chad Anderson – Jetcraft: “Commercial air service has not improved (if anything they have further degraded), the ultra-high net-worth population continues to increase, and fractional/charter company demand continues to stay high. The extra quality supply that comes to market in 2022 will get absorbed creating price stability. But we do not expect continued price increases realized previously in 2021.”

Paul Kirby, QS Partners: “The historically strong charter market continues to fuel light and mid-cabin segments as there are simply not enough airplanes in the fleet to satisfy demand. Until such time as charter demand wanes, those markets are likely to remain strong as operators continue buying aircraft for core fleet.”

“Limited inventory continues to constrain transaction volume in all market segments. Pricing has stabilized in most markets with all but a handful of markets having “peaked” in value late in Q1. The macro-economic uncertainty, combined with rapidly rising inflation and stock market volatility, has created a sense amongst buyers of a looming market correction. This sense is also starting to impact interest levels as buyers believe waiting will result in more favorable pricing.”

Kyle Wagman, Leading Edge Aviation Services: “We have hit a part of the market cycle where things have leveled off, a plateau of sorts. With interest rates rising and buyers that are weary of getting their toes wet in this market, I sense a cool down till fourth quarter.”

Mike Francis, SVB Private Bank: “Outlook seems a bit messy at the moment, as many positive signs are there are negatives. A looming recession, inflation, supply chain issues, and fuel prices are all drags (and there are more). Demand I expect will continue, and even if it falls off a bit, I’d in some ways prefer that as it’ll help the market get back to its normal equilibrium. I’m seeing a lot of potential buyers get turned off to the prospect of buying a jet due to the premium they need to pay and/or the lack of inventory.”

About the International Aircraft Dealer Association
IADA is a professional trade association formed more than 30 years ago, promoting the growth and public understanding of the aircraft resale industry. IADA now offers the world's only accreditation program for dealer organizations and the only certification program for individual brokers. The process delivers lofty standards of ethical business practices and transparency regarding aircraft transactions, leading to a more efficient and reliable marketplace. For more info go towww.iada.aero.

IADA's dealer organizations and individual brokers do business in more than 100 countries. They consist of the top seven percent of the world's aircraft dealers. IADA members participate in a program of ongoing education to remain current on best practices and new developments in acquiring and selling business aircraft, as well as abiding by a strict code of ethics, integrity and transparency. IADA represents a variety of IADA verified product and aviation services that also operate with the highest professional standards in the industry.

About AircraftExchange.com
A popular product of IADA is AircraftExchange, the only site where every aircraft listed for sale is represented by an accredited dealer. To earn accreditation, IADA dealers must meet our accreditation standards, receive sponsorship from current IADA Accredited Aircraft Dealers and undergo a formal review process. IADA Accredited Aircraft Dealers agree to adhere to a strict code of ethics that ensures fully transparent transactions between IADA dealers and aircraft buyers.

The AircraftExchange search portal enables organizations to create a confidential dashboard of business jets for sale, filtered based on their features and amenities, aircraft class, age, and price. Users can browse through data-rich listings for some of the most popular aircraft manufacturers, including Embraer, Cessna, Bombardier, and Gulfstream jets. For more info about AircraftExchange, go towww.AircraftExchange.com.

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Posted on: July 18, 2022