As tourism grew after the recession, airlines required more planes, raising demand for used aircraft
Los Angeles, CA (PRWEB) June 27, 2013
The Used Aircraft and Equipment Dealers industry is closely trailing trends in the overall economy and air travel. In the five years to 2013, industry revenue is estimated to increase at an average annual rate of 1.1% to $10.9 billion. “The industry met declines during the recession, but bounced back as corporate profit, per capita disposable income and demand for air travel increased,” IBISWorld industry analyst Andrew Krabeepetcharat says. As consumers and businesses gained higher incomes, they were more able to afford flights and industry products. In 2013, the industry is expected to achieve additional growth of 1.4%.
After 2009, demand from tourism quickly picked up steam, and small airlines and travel companies purchased used aircraft and equipment to supplement their existing fleet. “In addition, thanks to increasing per capita disposable income, high-end travelers and hobbyists were better able to spend on aircraft and equipment for private use,” Krabeepetcharat says. Businesses also contributed to the industry's growth; after they battled through recessionary lows, their revenue and profit margins rose greatly, allowing them to provide chartered flights to their employees, which helped boost demand for used aircraft and equipment.
The Used Aircraft and Equipment Dealers industry is highly fragmented and is comprised of many small firms. Industry concentration has increased marginally in the five years to 2013 on the back of industry exits and some organic growth. With the diffused and saturated nature of this market, significant changes in industry concentration are unlikely to occur. Any major increases in industry concentration will only occur with the entry of a large used aircraft and equipment dealer or with significant expansion of an existing operator.
In the five years to 2018, the industry is expected to grow as the economy continues to improve. During this period, industry revenue is forecast to increase. Growing corporate profit, higher per capita income and increased demand from domestic airlines will spur this growth. The global economy is also expected to recover, prompting exports to increase slowly. Profit margins for the industry are also expected to grow slowly as well during this period, as used aircraft and equipment dealers start charging higher prices due to rising demand. For more information, visit IBISWorld’s Used Aircraft and Equipment Dealers in the US industry report page.
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IBISWorld industry Report Key Topics
This industry sells used aircraft and equipment to passenger aviation service providers, freight service providers and individuals.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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