The return of the corporate buyer has played a key role in driving business aviation demand, according to research from Jetcraft, the global business aircraft sales and acquisitions firm.
Ever Forward, Jetcraft’s 2023 Pre-Owned Business Jet Market Forecast reveals that continued growth is predicted for the years ahead, despite inevitable market correction in 2023, setting benchmarks for volume and value. In 2022, transaction values hit a record $16.3B, driven in part by the resurgence of corporate aviation, following a dip during COVID.
What were the findings of Jetcraft’s survey?
Jetcraft’s data shows the share of Jetcraft buyers coming from the corporate sector reached 60% in 2022, demonstrating the value corporations place on jet ownership. New entrants to the market, OEM backlogs and the corporate buyer’s return resulted in total annual pre-owned transaction values beyond industry expectations – increasing by 38% in 2022.
“The return of the corporate buyer proves what we’ve always known: the importance of face-to-face interactions in the relationship world of business. Video conferencing tech served a purpose for all of us when the borders were closed, but businesses recognise the value of in-person meetings,” says Jahid Fazal-Karim, Owner and Chairman of the Board, Jetcraft.
“Corporate and individual clients looking to upgrade their aircraft will drive sales volume over the next five years. First-time business jet owners continue to play a role, with many, having tested the waters through charter or fractional ownership, purchasing their own aircraft.”
“From 2024, values will stabilise at above $15.4B annually, due to an increase in the total transaction volume, retirement of a significant portion of Light Jets from the under 25-year-old pre-owned fleet, and a higher share of larger jets entering the market,” Fazal-Karim said.
What do the findings mean for the industry?
Jetcraft’s 2023 survey report also breaks down the nuances found in pre-owned transaction values, further explaining why average prices increased more than expected during 2022.
Chad Anderson, CEO of Jetcraft, commented, “Today’s pre-owned jet marketplace is extremely complex, with aircraft segment prices differing widely and overlapping significantly.”
“This price and segment variation stems from greater demand of popular makes and models, as well as turnkey aircraft, which have always attracted a premium but are especially lucrative at present due to the length of the OEM and maintenance facility backlogs. We expect prices to level out as supply increases and depreciation normalizes in 2024.”
Download Ever Forward, Jetcraft’s 2023 Pre-Owned Business Jet Market Forecast here.