We as a collective industry have been working to get our messaging right to understand the unprecedented activity currently in preowned business aircraft markets. Are aircraft prices going up or were they just flattening out? Was inventory really shrinking before our eyes to record lows or was it just right-sizing based on a new demand ratio?
We are experiencing a supply versus demand ratio like we have possibly never seen. During the emerging market phenomenon that lasted from 2003 through 2008, the supply of business aircraft inventory was also stressed. However, the biggest difference between then and now was that, in the emerging markets, buyers wanted only new or like-new aircraft. The smaller, older airplanes did not fall into that stress.
Jay Mesinger is the CEO and Founder of Mesinger Jet Sales, an international aircraft brokerage firm, and has been regularly contributing to AIN since 2018.
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