Private Air New York

www.privateairny.com Private Air | Summer 2023 40 T he business aviation sector is experiencing a remarkable resurgence as corporate buyers return in full force following the challenges of the coronavirus pandemic. Jetcraft, a renowned preowned business jet market expert, released its latest forecast, revealing a significant surge in demand and preowned aircraft values. Explore the factors behind this resurgence and the enduring appeal of business aviation for corporate buyers in a post-pandemic world. Corporate Buyers Flock Back: According to Jetcraft's forecast, corporate buyers have reemerged as a dominant force in the business aviation sector. As economies recover and travel restrictions ease, businesses again recognize the importance of face-to-face interactions in building relationships and driving growth. e value of in-person meetings cannot be underestimated, with executives increasingly turning to business aviation for its efficiency, flexibility, and heightened security. Shift to Preowned Aircraft: With a surge in demand and limited availability of new aircraft due to delivery lead times, corporate operators are increasingly turning to the preowned market. Jetcraft reports that transactions in 2022 reached an impressive $16.3 billion, with corporate buyers accounting for a substantial 60 percent. e preowned market has become an attractive option, enabling companies to acquire aircraft quickly and efficiently, meeting their immediate travel needs. Rising Preowned Aircraft Values: One of the significant developments in the business aviation sector is the sharp increase in preowned aircraft prices. In 2022 alone, prices rose by 38 percent, driven by the influx of new market entrants, the return of corporate customers, and backlogs in original equipment manufacturer (OEM) deliveries. is trend reflects the growing demand for turnkey aircraft that do not require significant upgrades and highlights the desirability of certain makes and models. Stable Market Outlook: Looking ahead, Jetcraft's forecast suggests a positive outlook for the business aviation market. e volume of sales is expected to remain robust, fueled by existing corporate clients seeking to upgrade their aircraft and an influx of first-time business jet owners. e stabilization of values at approximately $15.3 billion annually is anticipated, driven by the retirement of younger preowned light jets and the increased availability of larger jets. Market Intelligence and Expertise: Jetcraft's annual report draws on extensive market intelligence acquired from its global transactions and interactions within the broker community. With over 60 years of experience and a recent acquisition of brokerage CFS Jets, Jetcraft possesses a deep understanding of the market dynamics across various segments. eir data-driven analysis provides valuable insights and informs the industry about the future of business aviation. e return of corporate buyers to the business aviation sector signifies the enduring importance of face- to-face interactions in the business world. Despite the pandemic-induced challenges, the industry has shown resilience, and business aviation has emerged as a vital tool for corporate buyers seeking efficiency, security, and productivity. As the market stabilizes and preowned aircraft values soar, the future of business aviation appears promising, with corporate buyers at the forefront of driving its continued success. A BURGEONING RECOVERY Corporate Buyers Drive Resurgence in Business Aviation: Preowned Aircraft Values Soar. Words By: Timothy Weaver Photography By: Jetliner Images AVIATION

• Cover