The COVID-19 pandemic has disrupted many global markets and the business jet industry is no exception. To confront the rapidly changing global economic profile and develop a path forward for business aircraft, the International Aircraft Dealers Association (IADA) impaneled a prominent group of leaders and experts to calibrate the markets today and provide some insight into a timeline for recovery.
IADA is taking a leadership role in ensuring that the business jet industry becomes well positioned for a recovery,” said IADA Executive Director Wayne Starling, who organized the webinar to address the current status and begin the process of developing long term solutions. “Over 450 of our members heard a distinguished panel articulate where we are today and the shape and timing for a recovery,” he added.
“We wanted to share the gist of that discussion with the rest of the industry, so we compressed it into 14 minutes of highlights for anyone who is interested in where aviation is today and where it might be headed,” Starling said. The April 9 webinar highlights are available for viewing at :https://iada.aero/iada-state-of-the-industry-webinar.
Panel participants and a short select comment from each is listed below.
Paul Kirby, IADA Chairman and Executive Vice President of QS Partners, an aircraft sales and acquisition company whose parent company is NetJets, the world’s largest private jet company owned by Berkshire Hathaway. — “The offer activity that we’ve had in the last 10 days is frankly really encouraging. Almost all of those offers have been within 10 to 12 points of what an airplane was worth on January 1st.”
Michael Amalfitano, the President and CEO of Embraer Executive Jets, with a broad roster of business jets. Amalfitano serves as the OEM member of the IADA Board of Directors.– “…When you look at…our aviation sector and the systemic nature by which the travel bans, and the supply chain, and the production plans, and the buying and selling activities that are taking place, you might tend to say that it’s going to take a longer period. Maybe a U-shaped, or even an L-shaped type structure. It’s going to take a long time to systemically recover. That might look more like 18-24 months to get back on the pace that we had been at.”
Greg Byrnes, Sales Director at West Star Aviation, a large MRO with numerous facilities throughout the United States. — “We have seen the corporate flight hours drop 25 to 35 percent here in the last three weeks…Of course we were all hit hard and quick, and it was a big surprise. Some corporate flight departments have shut down temporarily. Others have gone under self-quarantine.”
David Deitch, Vice President of Sales for Swiss-based Jet Aviation with maintenance and FBO facilities in the Americas, Europe, Middle East, and Asia Pacific. Jet Aviation’s parent company is General Dynamics. — People are sitting on the sidelines. They’re watching, monitoring to see what happens out there today…We’ve heard from quite a few airline pilots that would like to get back into the corporate market. Flight attendants as well.”
Richard Aboulafia, Vice President of Analysis with the Teal Group, an aerospace and defense market analysis firm based in Fairfax, Va. that provides competitive intelligence to industry and government worldwide. — “Most experts seem to think that a recovery will probably take about as long as the…epidemiological recovery from COVID-19, which is to say about 18 months. This is roughly an 18-month situation. That’s true for the vaccine. That’s probably true for oil prices. It’s probably true for a lot of the economic fallout.”
IADA Member Webinar Poll
IADA polled its members during the webinar, including dealers, brokers and products and services members. Over 78 percent said they expected a stronger second half and more than 65 percent indicated aircraft pricing as a result of the CODID-19 pandemic will drop 10 to 15 percent. More than 72 percent were very optimistic about the pre-owned business jet market post recovery while 58 percent were slightly optimistic about new aircraft sales.
IADA is a professional trade association formed more than 25 years ago, promoting the growth and public understanding of the aircraft resale industry. IADA now offers the world’s only accreditation program for dealer organizations and the only certification program for individual brokers. Products and Services members are verified by the organization. The process delivers high standards of ethical business and transparency regarding aircraft transactions, leading to a more efficient and reliable marketplace.