IADA reports spike in pre-owned aircraft transactions at year-end


Following a “pandemic-induced plunge” in pre-owned aircraft sales in March last year, members of the International Aircraft Dealers Association (IADA) have reported a rise in transactions, highlighted by a fourth quarter surge of 554 closed deals.

IADA began tracking sales metrics in April as a result of the volatile used aircraft sales transactions caused by the impact on the economy from Covid-19.

“In total, IADA dealers accounted for 1,011 transactions in the April-December period, not counting pre-owned aircraft sales handled by our OEM members,” said IADA executive director Wayne Starling. “Our dealers registered 285 sales in December alone, by far the most active month of the year and double any other COVID-19 impacted month.”

Looking towards 2021, IADA dealers ended the year by putting another 74 aircraft “under contract” in December. However, dealers reported that only 36 of the 554 transactions closed in the fourth quarter involved lowered prices. Marking a return to stabilised prices, that contrasts with 45 deals that involved aircraft with lowered prices on sales of 174 aircraft in the second quarter, as the industry began recovery from the plunge in activity during March.

“While it is way too early to say the industry has rebounded completely, as the pandemic is still raging, the activity in the preowned aircraft marketplace is certainly trending upwards across all of our dealers,” Starling said.

Jet Perspectives owners, Bob Zuskin, told Corporate Jet Investor his phone had been off the hook going into year end. Talking to the broker and dealer community that I speak to regularly, they were going insane in the last quarter 2020. The amount of business was unbelievable — there were closings left and right.”

Meanwhile, IADA’s marketing arm, www.AircraftExchange.com, handled 638 transactions for aircraft that were listed exclusively by IADA dealers, worth more than $5bn during 2020. This occurred “despite the most volatile sales environment in the aviation industry’s history due to the ongoing pandemic.” Today there are over 500 aircraft listed for sale on the site.