Since 2008, we have seen a new trend in the way that the pre-owned aircraft and new aircraft sales relate to each other. Prior to 2008, these two markets were almost identical and would rise or fall together. Since then, we have seen a large divergence between the two, with pre-owned aircraft increasing in transaction volume while the new aircraft have steadily declined.
From 2003 to 2008, sales of new and used private aircraft rose together. In 2008, the sale of new aircraft reached its peak when 1,313 new jets were sold. It appeared the pre-owned aircraft market also reached its peak a year earlier in 2007 at a recorded 2,181 transactions (which includes leases).
Right after 2008 when the recession hit, the entire private aviation industry experienced difficult times, much like many other industries. What was not predicted by any analysts was that the sales of new private aircraft would sharply decline by approximately 460 new jets sold in 2009 and continue to decline from that point on. On the pre-owned side, the sale of preowned private aircraft began a dramatic rise after 2009, and in 2015, it reached its highest level recorded at 2,623 pre-owned jet transactions.
The previous trend of activity running in accordance with one another has ended. Overall, the private aviation market has stabilized at 3,100-3,200 private aircraft transactions annually (new, pre-owned and leases), but pre-owned aircraft transactions has remained steady on an upward trajectory, while the number of new jets sold has continued in a steady but slow decline. Worldwide on average, there are four used private aircraft purchased for every one new aircraft purchased.
In the Czech Republic and Slovakia, 63 privately owned aircraft are being flown today by private owners and corporations. In 2015 there were six private aircraft (1 new, 5 used) added to these markets, in 2016 there were eight aircraft (3 new, 5 used) added, and this year we will reach 9 aircraft (2 new, 7 used) added in these market.
These aircraft were not always an increase to the overall fleet of these countries, as in more than half of the cases it is current owners selling and buying other aircraft. Thus, we also record yearly sales of private aircraft to other territories, resulting in a year-on-year increase in private aircraft in the Czech Republic and Slovakia of around 5%.
The ratio between new and used private aircraft in the Czech Republic and Slovakia are showing the same ratio as the worldwide markets of preowned to new private aircraft purchased with four preowned jet purchases to one new private aircraft purchase.
For more information on the Czech Republic and Slovakia markets, contact:
Marian Jancarik
Central and Eastern Europe Sales Director
marian@colibriaircraft.com
+421 (903) 425 746
This article was featured in the February issue of Business Leaders magazine, a publication out of the Czech Republic. You can read the magazine version by clicking Business Leaders.
A version of this article appeared in the Czech translated version of Issue 9 in our Fly-By Newsletter. You can read the Czech version by clicking here.
