Global Jet Capital’s Q2 2020 Quarterly Business Aviation Market Report

Global Jet Capital’s Q2 2020 Quarterly Business Aviation Market Report

 

Special Feature Contributor: Jason Thomas, Managing Director and Head of Global research for The Carlyle Group, discussing the global economic impact of COVID-19.

When 2020 began, the business jet market appeared to be in a strong position. However, as COVID-19 spread and social distancing measures were implemented, the industry entered a forced hiatus. Flight operations, new deliveries, and pre-owned transactions all reached low-points in April, but have gradually increased since then.

Global Jet Capital’s Q2 2020 Quarterly Market Briefing covers the state of the aviation market for new and pre-owned business jets; including, an overview of overall economic conditions, business jet flight operations, pre-owned and new market conditions, business jet transactions, and changes in aircraft residual values.

This report includes the following insights:

  • Business jet operations declined 50 percent compared to the same period last year as social distancing measures continued from Q1.
  • Despite a 9 percent year-over-year decline in OEM backlog, overall backlog remains just under $30 billion, which represents a strong position for the industry.
  • While aircraft inventories, as measured by the percentage of the active fleet for sale, have been inching up since Q1 2019, they ended Q2 2020 slightly above 10%, a historically sound position.
  • Overall, new and pre-owned transactions for the quarter were down 36 percent by unit volume and 37 percent by dollar volume versus the same period last year. Following a low in April transactions did pick up month over month through Q2.
  • Despite low transaction volume, the number of aircraft listed for sale remained stable throughout the first half of 2020 resulting in only gradual increases in inventory.

The Q2 2020 market briefing also includes a special feature from Jason Thomas, Managing Director and Head of Global research for The Carlyle Group, discussing the global economic impact of COVID-19.

Click here to download the full report:

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Posted By GJC Insider  \  

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