Global Used Aircraft Market - How bad is it where you are ?
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Global Used Aircraft Market - How bad is it where you are ?
Hi all
I'm a wholesale aircraft dealer and parts dealer based in Indonesia , we locate aircraft and parts packages here and export to about 14 countries around the World , about 50% of our business is with USA based companies. We rarely sell locally
October to December 2008 was totally dead , 90% drop in turnover and 4 aircraft 'done deals' cancelled. Luckily we've had some speculators come into the market during Jan and Feb to buy stock but they don't expect to be able to resell it soon, pricing is down 30% to 40% .
I spoke with an aircraft dealer friend of mine in Australia and he said since 4th quarter 2008 it's the worst he's seen the used aircraft market in 30yrs.
Is this happening in other parts of the World right now ?
If you have the cash now's a good time to buy .
I'm a wholesale aircraft dealer and parts dealer based in Indonesia , we locate aircraft and parts packages here and export to about 14 countries around the World , about 50% of our business is with USA based companies. We rarely sell locally
October to December 2008 was totally dead , 90% drop in turnover and 4 aircraft 'done deals' cancelled. Luckily we've had some speculators come into the market during Jan and Feb to buy stock but they don't expect to be able to resell it soon, pricing is down 30% to 40% .
I spoke with an aircraft dealer friend of mine in Australia and he said since 4th quarter 2008 it's the worst he's seen the used aircraft market in 30yrs.
Is this happening in other parts of the World right now ?
If you have the cash now's a good time to buy .
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In the Uk there are larger numbers of aircraft parked up. At some regional airporta there are 146 / RJ' / EMB 145's that have been parked for most of last year and in the case of older aircraft over a year. Lasham an airfield dealing only with eng has around 30 + newer 37's that have been parked for probably 6 months. My conclusion is the same as yours tough times still to come with older frames maybe not flying ever.
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For used aircraft dealers in the US the only time the phone rings it is another salesman calling to see if a customer has called. A good friend of mine told me that he calls his office phone from his mobile phone to make sure his office phone is working. I started laughing and he looked at me and said, "I'm serious, I do call myself to make sure the phone is working."
As someone said the other day, "Six, eight months ago we had thirty customers running around trying to buy one $50 million dollar aircraft, today we have thirty $50 million dollar aircraft sitting around looking for one customer." If someone has the cash, or credit line, to buy, now would be a good time. However, I have a client and I actually told him that we need to wait for few more months because I believe the market will get worse before it recovers. I really hope I am wrong, but....
I do know that Dassault has a 7X available right now.
As someone said the other day, "Six, eight months ago we had thirty customers running around trying to buy one $50 million dollar aircraft, today we have thirty $50 million dollar aircraft sitting around looking for one customer." If someone has the cash, or credit line, to buy, now would be a good time. However, I have a client and I actually told him that we need to wait for few more months because I believe the market will get worse before it recovers. I really hope I am wrong, but....
I do know that Dassault has a 7X available right now.
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" believe the market will get worse before it recovers. "
I have to agree with you con-pilot , we were planning to prepare to ferry an aircraft to Australia this week but the buyer is still waiting for his finance approval which for him normally takes a few days for verbal approval and a week for formal approval (we sold him an aircraft 12 mths ago) and we have been waiting 3 weeks now as the bank has gone back 2 times to his accountant to ask more questions , we may end up with an aircraft swap and a cash top up deal as he has an aircraft that the seller wants if the bank doesn't come through.
I have to agree with you con-pilot , we were planning to prepare to ferry an aircraft to Australia this week but the buyer is still waiting for his finance approval which for him normally takes a few days for verbal approval and a week for formal approval (we sold him an aircraft 12 mths ago) and we have been waiting 3 weeks now as the bank has gone back 2 times to his accountant to ask more questions , we may end up with an aircraft swap and a cash top up deal as he has an aircraft that the seller wants if the bank doesn't come through.
