Aug. 18, 2015
After a slow start to 2015, business aviation’s prospects seem to have improved by midyear, according to several industry indicators.
Shipments of new general aviation aircraft improved in the second quarter; late-model, pre-owned business aircraft are selling more quickly, and at higher asking prices; and business flight activity continues to increase.
ARGUS TRAQPak, which tracks IFR business flights, reports that the 5.6-percent increase in activity during July is the highest level of monthly flight activity since February 2012. In its year-to-year July 2014 and 2015 comparisons, all categories of aircraft operations posted positive gains. Turboprops headed the list at 7.6-percent growth, followed by large-cabin business jets at 7 percent, with small and mid-size business jets at 4.9 and 3.2 percent, respectively.
ARGUS estimates that this upward trend in flight activity will continue, with an overall four-percent increase forecast for August.
Review ARGUS business aircraft activity statistics.
JetNet figures for the first six months of the year indicate that U.S. business jets comprise 60 percent of the operational global fleet, and that number has grown by 437 to 12,097. The number of business jets for sale (1,371) is down by eight. The U.S. turboprop fleet, which increased by 148 units to 7,370 aircraft, accounts for 50.7 percent of the operational global fleet.
Analyzing sales of pre-owned aircraft, JetNet reported higher asking prices and faster turnover for business jets. Asking prices were up 17.7 percent. Although retail transactions were down 6.1 percent, business jets for sale turned over 39 days faster. Turboprop asking prices increased 16.9 percent, although retail transactions fell 10.8 percent.
Review JetNet midyear data. (PDF)
Second-quarter new-aircraft shipment and billing figures from the General Aviation Manufacturers Association (GAMA) were “generally improved” over the first quarter, even though they were down compared to the second quarter of 2014.
During the first six months of this year, manufacturers shipped a total of 1,015 general aviation aircraft worth $10.4 billion, including 464 piston-powered aircraft, 246 turboprops and 305 business jets, which meant that OEMs delivered more aircraft in each category during the second quarter of this year than they did in the first.
“Robust new product development continues in each of our member companies, accentuating the need for streamlined certification processes and efficient validation mechanisms between regulatory authorities,” said GAMA President and CEO Pete Bunce in a recent GAMA press release detailing the association’s latest billing and shipping data.
International Business Aviation Council Ltd.