MONTREAL, Dec. 19, 2022 – A very active December for business aircraft resale dealers is capping a powerful year for members of the International Aircraft Dealers Association (IADA).
Association members bought and sold more than 1,200 business aircraft worth $8 billion in the first 11 months of the year, according to statistics from IADA. And the December business pace has intensified further with more inventory to choose from and the pending expiration of 100 percent bonus depreciation in the United States, the most active market in the world.
While IADA’s Fourth Quarter Market Report won’t be released until January, an early projection indicates that once the year ends, the organization's resale experts could conduct over 1,320 deals worth more than $8.8 billion dollars.
The stunningly robust year will surpass a surprisingly strong 2021 which saw used business aircraft sales rebound mightily while available aircraft dropped precipitously from March of 2020, when the pandemic induced a brief market collapse. IADA members are seeing signs that 2023 could be normalizing, depending on many factors, including the world’s economies and regional stability.
Where is the Market Headed in 2023?
“The signals that we’re seeing from the broker-dealers in our group and our service providers are that the markets are beginning to normalize, and buyers are starting to become more rational. The frenzy of the last 12-24 months has calmed down quite a bit and we see this as healthy for our industry,” said Zipporah Marmor, IADA Chair and Vice President, Aircraft Transactions at Montreal-based ACASS.
“Aircraft are not appreciating any more at an unsustainable rate as they were for many quarters, which was creating some wonderful times and also a lot of challenges for different types of buyers and sellers. We do think the first half of 2023 will be strong as we’re seeing some buyers waiting to see what happens after 100 percent U.S. bonus depreciation is no longer on the table, and the rush to close at the yearend is over. And, of course, we are seeing increased inventory,” she added.
For a more detailed discussion of the 2023 outlook for the used aircraft market, listen to NBAA's Flightplan podcast at https://nbaa.org/wp-content/uploads/news/flight-plan/nbaa-flight-plan-20221212.mp3, featuring IADA Chair Zipporah Marmor, and hosted by Rob Finfrock.
IADA Chair Marmor is the first internationally based broker to lead the organization in its 30 plus years of existence, reflecting the association’s emphasis on global reach. Her leadership will include a newly formed international IADA committee developing further relationships around the world.
During 2022, IADA extended its global profile by joining the Asian Business Aviation Association (AsBAA), based in Hong Kong. The membership in AsBAA expands IADA’s organizational visibility to Greater China and Southeast Asia. IADA continued its relationships with several other business aviation organizations around the world, and its members continue to monitor the global geopolitical situations and economies.
“The war in Ukraine and the actions in Russia have affected activity in Europe. China’s Covid policy has affected business aviation a lot in Asia, certainly where there were very limited if not totally restricted movements,” Chair Marmor said, “Over the last 12 to 24 months that gave us inventory. We sold airplanes out of China in great numbers and we’re continuing to do so, primarily selling into the U.S. These are all factors that are really important in our industry, and we’ll see what comes down the line.”
In 2023, IADA is planning to exhibit at Europe’s leading bizjet gathering, the European Business Aviation Convention & Exhibition (EBACE) in Geneva, and to present at Corporate Jet Investor London 2023.
Focus on Sustainability
“As an industry, we need to continue to innovate and inform on the environmental side to keep growing. IADA has partnered with 4AIR to provide a carbon offset initiative to our clients. The environmental discussion certainly is a big factor in many acquisition decisions,”Marmor said.
“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,” said Kennedy Ricci, 4AIR President. “IADA and its members are helping lead the industry to a sustainable future,” he added.
The association grew to 52 accredited dealers in 2022, adding several new international-based members, extending the IADA footprint overseas and adding a new OEM member who found the relationships built with IADA dealers valuable to its aircraft resale programs. In addition, many more IADA-verified Products and Services members joined the transaction experts within the organization. With the growth, there are now 81 Products and Services members of IADA.
IADA Chair Marmor is joined by Vice Chair Philip Winters. Marmor is Vice President, Aircraft Transactions at ACASS, headquartered in Montreal, Canada, with representatives in the U.S., Europe, Asia, India, and the Mideast/Africa. She has more than 20 years of international business aviation experience spanning sales, management, and marketing. Since joining ACASS in 2011, Marmor has been a key driver the company’s global expansion and continued growth.
Incoming Vice Chair Philip Winters, Vice President - Aircraft Sales and Charter Management for Western Aircraft, leads new and preowned aircraft sales and aircraft management/charter divisions. He has been with Western Aircraft for 25 years. Western Aircraft is an authorized Piper dealer and the largest authorized Pilatus dealer in the world, representing Pilatus with the PC-12 NG and the PC-24. Additionally, Western Aircraft operates an aircraft management division with an FAR Part 135 certificate and multiple aircraft, DBA WestAir Charter.
Chair Emeritus David Monacell is partner in CFS Jets, business aircraft broker located in Charlotte, N.C., with locations through the South. He has over 20 years of private aviation sales experience and he has been a partner in CFS Jets since 2013. Throughout his career, he has held senior sales positions with both manufacturers and dealers, representing multiple new product lines.
Other IADA officers for 2023 include Board Secretary Toby Smith, who continues in that role. He is Vice President of JBA Aviation. The incoming Treasurer is John Odegard, Senior Vice President of Wheels Up Aircraft Sales. In addition, serving as Board Members at large are Nick Schneider, president and CEO of Global Wings, Chris Ellis, managing partner of Avpro, Inc., and Brad Harris, founder and CEO of Dallas Jet International.
IADA’s Strong Presence at NBAA-BACE
Nearly 90 IADA member companies were at NBAA-BACE, held in Orlando in the Fall. That number includes IADA-accredited aircraft dealers, OEM members and IADA-verified Products and Services members. Thirteen IADA member companies exhibited aircraft for sale at Orlando Executive Airport during the convention.
In addition to a strong presence at the aviation show, IADA schedules its annual fall member meeting in the NBAA-BACE convention city in the days prior to business aviation’s most iconic showcase. This year more than 300 IADA members attended the IADA business meeting to discuss industry issues. Activities included IADA U technical course work, broker testing and member meetings.
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