The preowned market for business jets is trending away from the near-manic demand and harsh seller terms we have experienced over the last few years. Ostensibly driven by the pandemic fears and the exuberance of first-time buyers, purchase prices skyrocketed and enabled sellers to restrict the due diligence of purchasers who often willingly accepted severe contract limitations to close an aircraft deal.
Despite and perhaps because of these extreme market conditions, the momentum in the preowned aircraft sales market remains strong and resilient—but not impervious—to inexorable headwinds of high inflation, rising interest rates, global economic and geopolitical risks, stock market wealth contraction, and incessant discussion of a recession.
David G. Mayer is a member of the global Aviation Practice Group at Shackelford, McKinley & Norton in Dallas, which handles private aircraft matters, including regulatory compliance, tax planning, purchases, sales, leasing and financing, risk management, insurance, aircraft management and operations, hangar leasing, and related corporate work. Mayer frequently represents corporations and high- and ultra-high-net worth individuals and other aircraft owners, flight departments, lessees, borrowers, operators, sellers, purchasers, corporations and managers, as well as lessors and lenders. He can be contacted at [email protected].
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