As we embark on the final and historically most active quarter of the year, buyer activity by most accounts seems to be building steam. While the worldwide inventory of jets is holding relatively steady right now, in May it dipped to 1,810 aircraft, a level not experienced since July 2001. The fact that it has stagnated at a slightly higher level since then with a nearly steady inflow and outflow suggests that the market could be poised to reduce further the number of choices for buyers to consider.
The current inventory figure seems high, but consider that only about
15 percent of the offerings are 10 years old or younger. Stabilizing, even rising, prices have caused buyers to pay closer attention to some more seasoned aircraft, which have suffered significant price deterioration over the last few years. The price erosion on many of these aircraft may finally be coming to an end, as many brokers report an uptick in sales activity on these aircraft, yet there still remains a large number of choices.
