Next week sees the annual migration of business jet people to Geneva for the European Business Aviation Convention. Thousands of people will be flying over in the next few days to stand around discussing important things like how much they have paid for their hotel.
There will of course, also be a lot of talk about the market. Since the Global Financial Crisis EBACE has traditionally seen a lot of optimism – or most people saying they are “cautiously optimistic” – only for that not to materialise. This year’s EBACE is likely to follow a similar pattern.
Part of the problem is that the business aviation market consists of many different submarkets. OEMs are having a tough time – and no one is expecting a flurry of new aircraft launches next week – but charter brokers say they are seeing some new demand.
AMSTAT says that 2,417 business jets are for sale at the moment – 11.39% of the fleet. This is up slightly from 10.9% in April 2015. Some of the larger aircraft brokers say that business is good.
Jetcraft says it sold 23 aircraft in the first three months of the year – and there are signs that small aircraft values may finally be firming up.
EBACE will be full of many conflicting opinions next week – even with the human tendency to talk things up – and that is one of the attractions. The only thing you get consensus on is how overpriced Geneva hotels are.
NOTE: The below originally appeared as the editorial in our Corporate Jet Investor One Minute Week newsletter. To find out more, and sign up for free, please click here.