With an abundance of rhetoric in the current market and questions lingering over when conditions will improve, here are a couple of interesting facts with regard to medium and long-range business jets when comparing current conditions with the height of the market in ’07.
- Selling prices are down 30%
- The number of aircraft sold is 30% fewer
- The number of aircraft on the market has increased exponentially
For example, in ’07 there were 14 Falcon 2000 transactions compared to 9 in 2009. The average selling price in 2007 was 19M compared to 12.2M in 2009. During this 2 year span, the number of aircraft on the market increased by 426%.
For a more detailed examination of the current market, we will be addressing absorption rate in our next post.