2018 marks one decade since the global economic downturn brought an abrupt end to the prosperity the business aviation industry had been experiencing. OEMs had been riding a bubble of exuberant prosperity that saw a record 1,317 business jet deliveries in 2008, but that changed swiftly.
At NBAA’s annual convention in October of that year, the usually bustling show floor took on the atmosphere of a funeral home lobby, with small groups discussing in hushed tones the latest financial market casualties. Before the crash, the super-heated business jet market had some models of used large-cabin jets selling at a premium, above new list price, to those who felt they couldn’t wait for their slot in the production backlog. That dynamic had many industry financiers scrambling to make deals as fast as they could, in many cases requiring borrowers to put forward little to no down payments, leaving the lenders shielded by only the seemingly unassailable value of the jets themselves. In the words of one industry veteran, “If you had a phone, you got a loan.”
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