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Preowned business aircraft values remain strong, although there is some evidence that the seller’s market may be changing, according to the third-quarter 2022 Vref Market Trend Report. These strong valuations persist despite inflation and recessionary fears, Vref said.

A summer slowdown hasn’t affected most aircraft model prices, the report notes, and “buyers’ appetite for business jets remains at levels not seen in years.” While there was an uptick in inventory for turboprops and business jets, the averages stand low at between 3 and 4 percent of the in-service fleet. However, these averages have edged up between 1 and 2 percentage points from the end of last year. Business jet valuations have continued to climb, the report says, noting that, for example, Cessna Citation values have increased between 2 and 20 percent from the second quarter.

The report notes that days on market have remained unchanged from the first and second quarters. Though there are fewer aircraft transactions in the second half compared with the first half, “we are still on par for a typical year if we remove the crazy benchmark year of 2021,” the report says.

Still, Vref president Jason Zilberbrand noted there are instances of some valuations weakening. “Demand continues to outpace supply, although we may finally be hitting the apex for asking prices, as for the first time in over a year sellers are being forced to lower asking prices to find a buyer and ‘turnkey’ ready-to-fly, thoroughly modernized aircraft are still clearly leading the charge for acquisitions across all classes,” he said.

Vref forecasts a “hectic” fourth quarter as buyers continue to take advantage of bonus depreciation before it expires and a “loathing of commercial carriers” that is “enough to keep the train on the track, keeping demand and asking […]

UAE-based helicopter and business jet operator Falcon Aviation plans to launch eVTOL air taxi services from luxury resort Atlantis the Palm in Dubai starting in 2026. Under a partnership with Eve Urban Air Mobility announced on June 7, the company signed a letter of intent to buy 35 of the manufacturer’s planned four-passenger eVTOL aircraft.

Falcon believes that its track record as a launch operator for several new helicopter types makes it well qualified to be an early adopter of eVTOL vehicles. According to chief operating officer Raman Oberoi, Eve—which is majority-owned by Brazilian aircraft manufacturer Embraer following a recent initial public offering on the New York Stock Exchange—approached Falcon with the proposal to launch services in the Gulf region.

“We were the launch customer for Leonardo on the AW189 and AW169 ,” Oberoi explained. “We are also talking to Leonardo on a new project, the AW09. We are also going to be the launch customer for that product. When Leonardo wants to launch a new product, they come to us. They depend a lot on our inputs because we know the industry very well.”

Eve, which says it is preparing to fly a full-scale prototype of its eVTOL model, this year, is targeting type certification in 2025.
Source: AINOnline

With preowned aircraft inventories hovering at historic lows of 1.3 percent, asking prices continue to increase, rising 11 percent year-over-year, according to market analyst Jefferies Aerospace & Defense Electronics. Some brands are seeing prices skyrocket, led by Gulfstream, which is up 41 percent based on the strength of sales involving the G450 and G150, according to Jefferies.

Using Amstat data, Jefferies has introduced monthly research that tracks pricing fundamental for business jets. It noted that the estimated valuation of the preowned inventory is up 4 percent from February 2021. The aircraft valuation is based on average selling price adjusted for typical premiums and/or discounts, age of aircraft, upgrades, engine plans, and usage, providing an estimate for what the sales price of an aircraft should be. With regard to valuations, Gulfstream is leading the increase with the G280 and G650, each up 26 percent, while the G550 rose 29 percent.

Asking prices, however, are currently mismatched, up 13 percent over the average fleet valuation. This dynamic crosses most of the fleets with the exception of Dassault. “Embraer and Gulfstream ask prices in the used sales market appear to have the largest disconnect relative to estimated valuation with prices 28 percent and 27 percent higher,” the analyst reported. “Bombardier and Cessna average used market prices are 7 percent and 6 percent above estimated valuation…Dassault is relatively in line.”

Business and general aviation fixed-wing shipments began a recovery across the board last year, reaching a total of 2,630 units worth $25.2 billion, according to the General Aviation Manufacturers Association (GAMA). Releasing the global shipment totals during its annual State of the Industry press conference in Washington, D.C. today. GAMA reported business jet, turboprop, and piston/electric deliveries for 2021 were up 222 units from the 2,408 in 2020. As a result, billings for these aircraft rebounded to $21.6 billion last year, compared with $20 billion in 2020.

In addition, helicopter shipments are up significantly year-over-year, even without Leonardo yet reporting year-end totals (Leonardo typically reports its results in March). Helicopter shipments had leaped by 25.3 percent, to 826 aircraft, and billings by 28 percent, to $3.7 billion, in 2021, the association reported.

The totals, GAMA president and CEO Pete Bunce noted, are “converging on figures that were seen before the outset of the pandemic.”

Business jet makers handed over 710 aircraft last year, marking a 10.2 percent jump from the 644 delivered in 2020 when the pandemic had initially halted activity and then dampened sales. However, while still ongoing, the pandemic had a different effect last year, pushing new buyers into the industry and helping to propel sales. Most of the business jet OEMs reported increases in 2021, with the exception of Gulfstream and Dassault, and nearly all that provided book-to-bill details saw yearly increases that were well above 1:1, with some closer to 2:1, pushing up backlogs.

Turboprop deliveries, meanwhile, reached 527 units in total, a 19 percent jump from a year earlier when 443 aircraft were delivered.
Light aircraft edged up from 1,321 units to 1,393. For the first time, GAMA reported this category as piston and electric, reflecting the entrance […]

Despite a fourth-quarter that saw fewer aircraft deliveries year-over-year, Bombardier beat guidance last year with revenues and earnings up 7 percent and 220 percent, respectively, as business jet shipments totaled 120, the company reported this morning. Further, the Montreal-based manufacturer is making plans to ramp up deliveries “a tiny bit” this year and by as much as 15 to 20 percent in 2023.

In a call with analysts, Bombardier president and CEO Eric Martel called 2021 a year of “planning, execution, and prudence” as the company moved forward as a pure-play business jet manufacturer. He also expressed encouragement that the company succeeded in all of its goals: turning the Global 7500 into a revenue “accelerator,” expanding its aftermarket presence with $1.2 billion in revenue, deleveraging its balance sheet with interest expenses cut by $250 million, and remaining on target with its cost-reduction goal of $400 million by 2023.

In the quarter, Bombardier delivered 38 business jets, down from 44 a year ago, with large aircraft deliveries sliding by 10 units, to 18. Meanwhile, Learjet deliveries were cut in half to two units as the company winds down its light jet programs. Martel reiterated that the final three Learjets are to be handed over this year.

As a result, fourth-quarter 2021 business jet revenues dropped by $500 million, to $1.7 billion. But adjusted earnings swelled from a $1 million loss in fourth-quarter 2020 to a $232 million gain in the most recent quarter.

Martel explained that in the fourth quarter the results were a little unusual because the onset of the pandemic—and the associated travel restrictions and factory stoppages—had caused a shift in deliveries toward the end of 2020, thus making for a really strong final quarter that year. “2020 was a little […]