The Business Aviation Market – 2007 vs. 2009

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.

On average:

  • 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%.

This scenario holds true regardless of make/model. In 2007 the average selling price of a pre-owned G550 was 52.4M compared to the 2009 average of 37.5M, a roughly 30% decrease.

For a more detailed examination of the current market, we will be addressing absorption rate in our next post.

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