The eye-popping total of 2,750 pre-owned aircraft for sale today is a lot based on historical standards, but it is well below the peak reached a little more than a year ago. The broker community and OEMs monitor the total number of aircraft for sale because it is an important measurement on which to gauge the health of the used aircraft market, but when you scratch beneath the surface you realize that the sky is not falling.
Consider that of this number today roughly 100 are aircraft that are not yet even in operation–delivery positions, which is another chapter to the story and probably causes more grief for the new aircraft segment than the used. More important are the more than 600 aircraft that have been on the market for more than two years, perhaps calling into question the level of commitment of the seller to accept market pricing. “Yes, we have an aircraft, but we’re trying to sell it” might be the path of least resistance for operators who want to avoid criticism from the press or stockholders. In fact, last year one broker was getting paid a commission to make it appear that an aircraft was for sale, but not to sell it. Based on conversations with others, it was clear that while the practice was not widespread, this was not a unique request.
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