Report Says Used Jet Prices Could Decline Further

JPMorgan Global Equity Research has reported that used business jet inventory declined modestly in November, marking the fourth consecutive monthly drop in the number of aircraft for sale. The midsize class saw the biggest inventory decrease, while the number of available light jets remained relatively unchanged from October. However, about 13 percent of the used-jet fleet is still on the market--a higher number than at any point before the end of 2008--leading JPMorgan to conclude that values could decline further. According to the report, asking prices fell 1.2 percent in November, the 12th straight month of decline, and are down nearly 25 percent from a year ago. JPMorgan predicts that substantial demand for new jets won't return until well into the future and estimates worldwide deliveries of 754 jets (including VLJs) next year, 825 in 2011 and 994 in 2012. For more on the used jet market, see our Preowned column by Bryan Comstock.