The USA is by far the largest market for private jets in the world. Of all the jets in service roughly 66% are registered in the USA. What is not often discussed is how this USA majority affects owners and buyers in other parts of the world and in particular Europe.
The most direct effect is that the number of aircraft suitable for an EU buyer becomes significantly smaller due to non-reciprocal certifications by the FAA and EASA. The USA and Europe each have their own regulatory authority (the FAA and EASA, respectively), and while their roles are very similar, it is the differences that create consequences to the European market. For example, EASA will not accept many FAA modifications to aircraft. As a European buyer, if the aircraft you want has USA modifications you likely won’t be able to register the aircraft in an EASA country without a time consuming and often expensive EASA certification to those modifications. Many Bombardier products that were originally built for USA buyers have interiors installed in compliance with FAA rules but not EASA. Europeans must be careful to ensure the aircraft they are buying has its interior completed and certified to European standards. With mid-size aircraft, EASA requires a Flight Data Recorder to be installed while the FAA does not. Retrofitting one is expensive and time consuming, and most USA built aircraft do not have one installed during initial build. This lack of acceptable aircraft cuts the supply for European buyers drastically.
The other noticeable effect is that in certain markets a price discount for a non-USA based aircraft is needed to entice a USA buyer to consider a European aircraft. This is common in markets where most buyers are in the USA and there is a large supply of USA aircraft, typically in the light and midsize segment. Quite often USA based buyers require a price reduction to consider a foreign aircraft to compensate for the extra time and effort needed to import the aircraft into the USA. Not only is the discount to account for the higher costs, but also the steps and extra time involved.
Some markets are international enough where the USA market does not exert an overwhelming influence, such as the Global XRS and 6000. But for many models, the size of the USA market does impact buyers and sellers worldwide.
As a buyer in Europe, a key to a successful aircraft search and transaction is flexibility, especially if you are in a market with a very limited supply of EU capable aircraft. It may mean looking at multiple aircraft types, being willing to wait for the right aircraft to come to market or paying a little more for an aircraft that suits your requirements.
As a seller competing in a USA dominated market, ask yourself how much of a price discount would you demand if you were in a buyer’s position. Use the same logic as a buyer to help understand their mentality. Alternatively, try to offer ways to overcome traditional obstacles such as offering to ferry the plane to the USA after closing or other incentives to attract a foreign buyer to your jet. And of course, waiting for an EU buyer is always an option but it may take longer for one to come along.
