In the first half of 2018, the pre-owned aviation market has seen a dramatic decrease in supply across some significant model types. In the same vein, this has produced a decrease in availability of EASA certified aircraft in certain model markets. This decrease is a result of an increase in aircraft being sold combined with withdrawals from the market. A lot of models are suffering from this decline, especially the models that are “strong value” ones such as the Citation XLS+ and the Gulfstream G550. Both models offer versatility and high capability and are very popular for these reasons.
The implications of this decrease in supply for a buyer are that you may have to be less particular in your aircraft search. This may mean you have to be broaden your horizon on specific aircraft types you are looking for or that you may have to compromise some on your transaction terms.
It’s also important to recognize your motives for purchasing a jet – are you shopping for a deal or shopping for an aircraft? If you are shopping for a deal, it will probably take more time than you anticipate to find the right opportunity with supply decreasing and pricing stabilizing or rising in certain markets. If you are shopping for an aircraft that matches all of your specific criteria, your search may take longer with less available aircraft on the market, or you may have to look outside your original expectations at the aircraft available or be willing to modify your aircraft post-closing to suit your desires.
As always, a quality aircraft usually means a higher price, and this is especially true with supply declining. And remember, you may not get the exact deal and terms you want, but if you are purchasing the aircraft you want, that is value in and of itself. Determine what you are willing and not willing to compromise on when it comes to transaction terms and the actual aircraft itself.
