January 11, 2023
2023 Pre-owned Jet Pricing Outlook
July 29, 2022
Aircraft demand is still very strong in the charter and fractional business, as well as in the first-time whole aircraft buyer segment, according to Don Dwyer, the managing director of Guardian Jet.
In July 2022, he spoke with Meagan Kelly of Corporate Jet Investor for her opinion article in the CJI One Minute Week newsletter.
Playing devil’s advocate is rarely popular, often darkening an otherwise optimistic viewpoint. Pre-owned aircraft sales in North America are a case in point. Is the increasing supply of pre-owned aircraft a good thing or does it signal falling demand to come?
Everyone agrees the supply of pre-owned aircraft is outgrowing demand for the first time since the pandemic. Proof came recently in the shape of the latest report from International Aircraft Dealers Association (IADA).
So, the market is softening, but this was long overdue and is nothing to be afraid of, according to some industry experts consulted by Corporate Jet Investor (CJI).
This would be comforting if everyone agreed. But some business aviation insiders are more cautious about a future downturn.
Don Dwyer, managing partner, Guardian Jet remains optimistic. “Demand is still very strong in the charter and fractional business, as well as in our first-time whole aircraft buyer segment,” he tells CJI.
He thinks this could be a short-term blip.
“The fact that there are fewer transactions in the short term reflects some uneasiness in the economy, which is natural, but we haven’t seen prices falling,” he says.
Covid may have been the accelerator of new entrants in the past two years, but “these buyers also came on from the power of a 10-plus year bull run” and, as a result, “softening is inevitable.”
Dwyer adds: “I can’t predict what happens in the global economy, but from an aircraft point of view, I think we’re fine. Better than fine.”
Read the full opinion article by Meagan Kelly posted on 29th July