The business jet resale market is robust and the six-month demand for business jets strong, according to the International Aircraft Dealers Association (IADA), which released its 2022 third-quarter market report Tuesday.
IADA’s dealers make up the top 12 percent of the world’s experts, who handle 46 percent of used business aircraft sales. The group’s accredited dealers buy and sell more aircraft by dollar volume than the rest of the world’s dealers combined. Each year, IADA dealers average more than 1,100 transactions and $10 billion in volume.
There were 331 sales transactions in the third quarter, which is nine fewer than the 340 reported during the same period in 2021, IADA said Tuesday during a press conference at the National Business Aviation Association-Business Aviation Conference and Exhibition (NBAA-BACE) in Orlando, Florida.
So far this year, IADA said its dealers have completed 929 deals. That is 60 more transactions than during the same period in 2021. Like many other business aviation stakeholders, IADA said its buyers have not been deterred by the rising interest rates in the global economy.
“Obviously, from the international perspective, stability in Europe and Asia are wildcards for the future,” newly installed IADA Chair Zipporah Marmor said in a statement, adding that third and fourth-quarter sales outlook in that region seemed encouraging.
Marmor became an active IADA member in 2018 and was made a board member in 2020. She is vice president of Aircraft Transactions at ACASS, a major customer support service for business aviation located in Montreal, Canada, with offices also in the U.S., Europe, Asia, India, and the Mideast/Africa.
IADA also said that its members indicated via a survey that there was a slight increase in the supply of aircraft inventory. At the same time, they expected demand to stay steady for the next six months, particularly for turboprops and light, mid-size, and ultra-long-range jets.
“Buyers in the market took a summer pause due to bad economic headlines and a small incremental increase in inventory across most all makes/models,” said IADA member Shawn Dinning, a senior partner at Dallas Jet International. “That pause is over, as evidenced by brisk activity and offers across the spectrum of the market.”
All About the Fourth Quarter
“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. It will also be driven by airline cutbacks to smaller cities, spurring first-time buyers, and cash availability for most aircraft purchases,” Marmor said.
Presently, 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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