Get ready for a bumpy ride. The sputtering global economy is sending the pre-owned aircraft market into a steeper dive and is likely to slow new aircraft sales and new aircraft development programs, according to leading industry analysts and observers. Prices for pre-owned business aircraft have been trending down for the last five quarters and the number of new jet buyers looking to unload their delivery positions is increasing. Flight operations are down 11 percent, and charter, depending on the region of the country, is down anywhere from 10 to 50 percent.
The altimeter is still unwinding and more turbulence could be in store depending on whether the federal government’s plan to resolve the current financial crisis works.
“The OEMs are fat, dumb and happy with their current order backlogs and are oblivious to how quickly things will change,” corporate jet analyst and consultant Brian Foley said last month.
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