The International Aircraft Dealers Association's 2022 Third Quarter Market Report documents a flourishing resale market for business aircraft with a balanced outlook for the next six months. IADA's industry report includes validated sales data and candid market perceptions from transaction experts.
Closed transactions by IADA dealers during the 2022 third quarter remained strong at 331 sales transactions, compared to 340 in the third quarter of 2021. Year-to-date IADA dealers have completed 929 deals, up even from the frantic pace set in 2021 with 869 transactions over the equivalent period. With over 60 per cent of transactions in cash, global buyers and sellers seem somewhat immune to rising interest rates.
“Obviously, from the international perspective, stability in Europe and Asia are wildcards for the future. However used aircraft sales were strong in the third quarter and the fourth quarter outlook is encouraging,” says newly installed chair Zipporah Marmor, vice president of aircraft transactions at Montreal-headquartered ACASS.
“The collective sentiment of IADA members is that traditionally heavy fourth quarter volume will be driven by the phase-out of 100 per cent bonus depreciation in the US, airline cutbacks to smaller cities spurring first-time buyers and cash availability for most aircraft purchases,” she adds.
Third quarter survey responses from IADA membership show a slight increase in supply while demand remains stable for the next six months in the markets for turboprops and light, mid-size and ultra-long-range jets. Pricing across all aircraft categories is also projected to be steady.
What Are the Experts Saying? IADA's market report is a product of trusted opinions by aircraft transaction experts, backed by hard sales data. It incorporates quantitative resale information from IADA's AircraftExchange.com marketing tool and qualitative survey data from IADA members.
“The market has returned to a much more reasonable mood," says Dallas Jet International senior partner Shawn Dinning. "Buyers in the market took a summer pause due to bad economic headlines and a small incremental increase in inventory across most all makes/models. That pause is over, as evidenced by brisk activity and offers across the spectrum of the market.”
“Our feeling that 'the end is near' continues to be proven wrong by activity in the markets, where demand continues to outpace supply and values have remained very close to their recent highs,” adds QS Partners EVP Paul Kirby.
“Global stability (Ukraine, Russia, Taiwan, China) are the biggest wildcards out there. Sanctions may be useful tools for global policy, but they could also impede aircraft transactions,” says HCH Legal founding member Greg Cirillo.
“I do feel there will be a strong fourth quarter, mostly driven by year-end tax-driven buyers,” says Leading Edge Aviation Solutions director of aircraft transactions and consulting Kyle Wagman.
IADA-accredited dealers are active in all areas of the world, many in multiple regions. Nearly every dealer does business in North America, 56 per cent operate in Europe, 44 per cent are active in Latin America, 42 per cent do business in Asia and the Pacific region, and 39 per cent work in the Middle East and Africa.
IADA's AircraftExchange marketing search portal is the only site where every aircraft listed for sale is represented by an accredited dealer. AircraftExchange enables users to create a confidential dashboard of business jets for sale, filtered based on their features and amenities, class size, age and price. Users can browse through data-rich listings for available business aircraft.