Private Jets for Sale – Market Update

December 20, 2011 | Posted by Scott Cutshall

The business aircraft market seems to be swinging just like the stock market these days. Overall, the market remains very soft with activity at or slightly below those of this time last year. Despite lower inventories compared to the same period last year, prices continue to lag.

It is still a buyer’s market, and if you have been considering the purchase of a private jet, now is an excellent time to make a purchase. A key area to focus on is young used aircraft. In a recent survey released by UBS¹, they surveyed a cross section of aircraft brokers, financiers, manufacturers, and others in the business aviation field. 47% of those surveyed believe young used aircraft inventors are higher than normal.

Why is this of interest when there are so many 12-15 year old private jets for sale available at such attractive prices? Because the acquisition cost is only one-third of the equation when making a purchase. The other two parts are cost of operation and resale value. A young plane offers lower operating costs and offer greater chances for holding or increasing in value as the market continues its slow recovery. Not to mention if you are considering offsetting the cost of ownership with revenue from jet charter.

Young aircraft in the today’s charter market demand a $300-$600 per hour premium. Combine this with greater fuel efficiencies and lower maintenance costs realized in a young more efficient aircraft, the charter contribution could easily be double a similar size older aircraft.

If you would like to review an operating budget to see how you may benefit from TWC Aviation’s complete private jet service solution. Contact one of our Directors 888-923-1001 or sales@twcaviation.com

1 – UBS Business Jet Monthly – December, 2011