Peter Menza, new VP Global Aviation in Hillsboro, Oregon,

Global Aviation Vice President of Client Services and Acquisitions Peter Menza

Perspectives is a new featured column in the Global Aviation Newsletter written by Peter Menza, an industry expert and Global Aviation’s Vice President of Client Services and Acquisitions.

An overall perspective…

The world in which we operate is both dynamic and exacting. Three months into my new role at Global Aviation, I couldn’t be more proud to be part of an organization where the collective ability to seamlessly adjust to customer needs and market expectations are demonstrated everyday.

State of the market…

Aviate. Navigate. Communicate. These three simple words are familiar to anyone who has piloted an aircraft. Keep the aircraft flying, get where you need to go and communicate effectively when applicable. The words become more profound – in that order – when confronted with abnormal situations. Think of the current aviation market in terms of piloting through an abnormal situation.

Today’s aviation market is very different from what was experienced in the roller coaster ride of the last three cycles prior to 9/11. At present, the number of available aircraft for sale – both new and pre-owned – out number the available, or more appropriately called, “willing” buyers. Corporate entities are increasing their overall utilization, resizing their fleets to meet their needs and keeping assets longer. New corporate entrants are expending more time in evaluating aviation options before executing their buy orders. Similarly, the high net worth individual buyer is patiently waiting for their perceived bottom of the market to materialize.

While no one can predict with accuracy where the market is heading, it is clear that buying opportunities exist. For example, ten years ago, there were four or five aircraft priced under $20M that could meet a specific mission criteria. Fast forward to today: that same price point exposes the buyer to a greater selection of aircraft that is considerably larger, longer range and comparably equipped. This is not exclusive to the pre-owned inventory; new aircraft are also in the mix.

Downward pricing pressure will continue to close the gap between new and pre-owned options within certain categories of aircraft. Projections from the respective industry groups and analysts point towards a more measured growth rate across business aviation between now and 2024. As financial markets in general began to settle, buyers sitting on the sidelines will get in the game to take advantage of great opportunities in the market.

Part of what we do at Global Aviation is keep our customers informed. We are here as your aviation resource and available to discuss how we may help in your aviation planning.

Read more from the Global Aviation February 2016 Newsletter…

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