IADA: Private jet market to remain hot for next six months as prices remain high and inventories low

IADA Q4 2021 Market Report Released

Buying activity is excellent. Stock levels are a concern. OEMs need to start delivering new planes at a higher volume in order to move more planes into the market.

— Todd Spangler, IADA Jetcraft Accredited Dealer Sales Manager

USA, Jan. 24, 2022 /EINPresswire.com/ — Members of the International Aircraft Dealers Association (IADA) predict the market for used private aircraft will remain hot through the first six months of 2022, as the stock of available aircraft will remain low. IADA’s Q4 2021 Market Report includes a summary of market perceptions questionnaires sent to nearly 900 IADA members, including dealers, their brokers and members who provide products and services related to aircraft transactions.

IADA is the premier organization for aviation professionals who specialize in aircraft transactions and whose opinions provide an informed perspective on the state of the pre-owned business jet market. Its dealers buy and sell more aircraft in volume than the world’s unaffiliated dealers combined, averaging more than 700 transactions and $6 billion in annual revenue.

2021 was unprecedented

By any measure, 2021 has been an incredibly unprecedented year, roughly doubling the average number of IADA aircraft transactions. IADA-accredited private aircraft dealers closed 20% more transactions in 2021 than the previous year: 1,372 aircraft transactions, compared to 1,135 transactions in 2020. And this despite an inventory of aircraft reduced, with many aircraft never having been marketed before being ripped off. by buyers willing to pay top dollar.

“Today’s market is incredibly unique and while aircraft are transacting quickly, it’s the result of factors that haven’t created an entirely positive environment for resale space,” said Johnny Foster. , President and CEO of IADA Accredited Dealer OGARAJETS. “We had a strong year, perhaps our best, however, the market created an environment that was not as positive for our buying clients. Values ​​and prices are completely disconnected, supply is close to zero and due diligence is limited by store capacity and demand,” he added.

Hot in all areas

Responses from IADA members in the fourth quarter of 2021 predict that the first six months of the coming year will continue to drive increased demand for all sectors of the pre-owned aircraft sales market, including turboprops, light, medium and large aircraft and ultra-jumbo jets, while supply shortages are expected to continue to drive up prices.

“Values ​​have increased by an average of 10% per month over the past three months. The rate of change seems unsustainable. However, absent an increase in supply or a dramatic drop in demand, the appreciation will likely continue into 2022,” said the IADA President Emeritus. Paul Kirby, who is also executive vice president of QS Partners, another authorized reseller.

“In my aircraft valuation business, for aircraft with fair market value under $10 million, I add 20% to account for lack of supply and extreme demand,” said Jeremy Cox of JetValues-Jeremy, LLC. “Above $20 million, I add 10%, with all intermediate points pro-rated. The used aircraft market, since Q3 2020, has become a bull market, with minimal days in the market and, in most cases, premium pricing above asking price is ongoing.”

crazy numbers

Kyle Wagman, Director of Aircraft Transactions and Consulting for Leading Edge Aviation Services, said: “I think we all have buyers who are eager and ready to make offers, but with a limited supply of pre-owned aircraft, values ​​have reached crazy numbers. Who would have thought that an aircraft purchased new from an OEM less than three years ago could be sold in today’s market at a premium to what the owner paid?”

The IADA Market Report is an informative and reliable view of the state of the aviation industry. It covers IADA Accredited Dealers’ perceptions of the market from the IADA Membership Survey and actual sales data reported monthly by IADA Dealers, even when inventory is difficult to locate and may never appear in the market. But this does not include used aircraft transactions conducted solely by IADA OEM members.

The IADA Member’s outlook and projections for the IADA Market Report are informed by monthly business reports submitted by IADA Accredited Dealers via AircraftExchange. In addition to sales data from AircraftExchange listings, the IADA Market Report includes data on all IADA-accredited dealer activity and transactions reported in aggregate.

Todd Spangler, Sales Manager for IADA Accredited Dealer Jetcraft, covering Florida and Central and South America, summed up the sentiments of many used brokers: “Buying activity is excellent. Stock levels are of great concern. volume in order to move more aircraft into the market.”

To register and download the report, visit https://aircraftexchange.com/market-report.

About the International Association of Aircraft Dealers

IADA is a professional trade association formed over 30 years ago promoting the growth and public understanding of the aircraft resale industry. IADA now offers the world’s only accreditation program for dealer organizations and the only certification program for individual brokers. The process provides high standards of ethical business practices and transparency regarding aircraft transactions, leading to a more efficient and reliable marketplace. For more information, visit www.iada.aero.

About AircraftExchange.com

IADA’s online marketplace, AircraftExchange.com, is the industry’s premier source of exclusive aircraft for sale or lease through IADA-accredited dealers. IADA’s robust listing verification process ensures that, unlike other online advertising sites, there are no duplicates, no ghost listings and no advertised aircraft that are not actually available for sale .

The AircraftExchange search portal allows organizations to create a confidential dashboard of business jets for sale, filtered by features and amenities, aircraft class, age and price. Users can browse data-rich listings for some of the most popular aircraft manufacturers, including Embraer, Cessna, Bombardier and Gulfstream jets. For more information on AircraftExchange, visit www.AircraftExchange.com.

Jim Gregory for IADA
James Gregory Consultancy LLC
+1 316-558-8578
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