If this trend continues, I believe we’ll see the market approach a balance between supply and demand for the first time in several years.
Palm Beach FL (PRWEB) April 12, 2017
The Private Jet Company announced today that demand seen since President Trump took office contradicts recent media reports of a continued sales slump in the pre-owned private jet market. Daniel Jennings, founder and President of The Private Jet Company (TPJC), noted that surging demand over the first Quarter of 2017 – especially for certain aircraft types – is likely an early sign of a rebound in the private jet marketplace.
"Our phones are ringing off the hook," said Jennings. "We're very busy with calls from prospective private jet buyers, particularly in the U.S. market. If this trend continues, I believe we’ll see the market approach a balance between supply and demand for the first time in several years.”
Jennings pointed to notably increased demand for long-range private jets such as the Gulfstream G200, G450, and GIV. "The market is definitely getting tighter on these aircraft," he added.
Data provided to The Private Jet Company by respected business aircraft market research firm JETNET bears out that impression. For example, available G450 inventory has declined over the past five months, accompanied by a marked drop in average days on the market, from 730 (2 years) in Oct. 2016 to 266 (less than a year) in Feb. 2017, a 70% drop in just 6 months.
Inventory levels for Gulfstream GIVs have held steady, but the average number of days these popular aircraft are on the market has decreased more than half from last December through the end of February. Available G200 inventory has dropped 25% in the same time frame, with total average days on the market decreasing by more than one-third since January.
"With fewer aircraft available, we're also seeing the ones with the best pedigrees – lowest flight time, best maintenance records, and newest interiors – being sold fast,” Jennings said. "We’ve even seen buyers making immediate offers for these aircraft, only to find that the aircraft had already been placed under contract by another buyer in a matter of days.”
Based on these experiences, Jennings encourages potential buyers waiting for the market to remain stagnant and for prices to drop further to act now on a private jet purchase to take advantage of current prices before they go even higher. "There's still a sense out there that the market is in a slump," he noted, "but I believe we're seeing the best indication yet that the slump may soon be over.
“Simply stated, someone purchasing a private jet six months from now will almost certainly pay a higher price than they would today, and quite possibly for a less-desirable aircraft,” Jennings concluded. “In 90 days, you're going to see a tightening market - and as the market tightens, buyers will need to move faster on those purchases.”