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The Market for Existing Airplanes

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Gemini Sparkle

Key Takeaways:

  • The article argues that airplanes should be considered "existing" like real estate, not "used" like cars, due to their inherent durability and long lifespan, which allows them to retain and often appreciate in value.
  • This appreciation is primarily driven by rapidly increasing prices for new aircraft and the mature technology of piston and turboprop planes, meaning older models do not quickly become obsolete.
  • Like buildings, existing airplanes can be continuously maintained and upgraded with new components (e.g., engines, avionics, interiors) rather than being fully replaced, reinforcing their long-term investment potential.
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I don’t like the term “used” or “preowned” applied to airplanes. Those are standards of the automotive industry, and airplanes and cars have next to nothing in common.

The best way to describe an airplane that isn’t brand new is “existing.” That’s the term typically applied to buildings. They are either new or existing. You don’t buy a used house, for example. You buy a new house or an existing house. And airplanes have almost everything in common with buildings and real estate but very little similarity to cars and other vehicles.

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