While a year ago it seemed as if buyers were beginning to emerge from harsh winter hibernation, in fact inventory was still a few months away from reaching its all-time peak. At the same juncture this year, we find inventory a couple of hundred aircraft below its 12-month moving average, yet still a couple of hundred above the pre-Lehman collapse figure. Given the tumultuous time between then and now, the fact that more aircraft are going off the market than coming on is nothing less than remarkable.
Playing no small role has been the pricing freefall. Since prices have dropped by 10, 20, 30, 40 and even 50 percent in some cases, aircraft ownership has become so compelling for some buyers they just couldn’t resist any longer. The pricing reset, which appears to be overdone, has snapped back the market to stable levels among many model types and modest price appreciation in a select few. Still others are searching for firm footing. Just the fact that there is no longer across-the-board price destruction comes as great relief as the stabilization begets greater buyer confidence and seller pricing clarity. Both are key ingredients to moving the market.
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