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Sales of light and midsize jets will show the strongest growth over the next six months, according to a new report from the International Aircraft Dealers Association (IADA).
IADA brokers predicted how the different sizes of pre-owned aircraft would perform on a scale of ‘significant decrease’ (from 0-0.9) to ‘significant increase’ (from 4-5).
Respondents indicate a “better than normal” market conditions both in the fourth quarter of 2020 and the first quarter of 2021.
The report also showed that IADA Accredited Dealers closed 211 pre-owned aircraft sales transactions in the first quarter of 2021. Another 246 aircraft are expected to close in the next few months.
“This IADA data clearly indicates that the aviation industry has proven its resilience through the economic fluctuations brought about by the pandemic and is now on a trajectory for continued success,” said IADA executive director Wayne Starling.
In the 12-month period from April 1st, 2020 to March 31st, 2021, IADA dealers closed 1,222 global transactions.
Since the beginning of the pandemic, the industry has seen several first-time buyers keen to fly privately. A recent report by Jetcraft showed that large jets (Bombardier Global, Dassault Falcon 7x, Gulfstream G500, etc.) account for a major share of aircraft purchased by buyers under 50 years of age.
The forecast also showed that pre-owned transaction volume and value will recover to steady growth during the forecast period, reaching 2,271 transactions worth $11.1bn annually by 2024.
Jahid Fazal-Karim, board chairman, Jetcraft said: “Aviation is one of the most dynamic and resilient industries in the world and I’m confident in its post-Covid-19 recovery, particularly with more first-time buyers realising the value of business aviation.”
Meanwhile, the latest Asset Insight AI2 Market Report identified a 7% rise in the sales of pre-owned business aircraft during the first quarter of 2021. But ask prices were down by nearly 6% over the period.
IADA report – at a glance:
-Light and midsize jets will show the strongest growth over the next six months
-Assessment of the current business aircraft sales market is “better than normal”
-Demand for light jet market in the next six months will see “slight increase”
-Dealers closed 1,222 global deals from April 2020 to March 2021
-211 pre-owned aircraft sales completed in Q1 2021, with 246 expected in coming months