Impact of recession on bizjet utilisation
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AviationWeek has an article that talks about the drop in demand for business jets:
Full text here: Increasing Resale Value: What Really Counts? | AVIATION WEEK
It's a tough time to try to sell a business aircraft, perhaps the most difficult resale market since the 2001 to 2004 slump. And most analysts believe the resale market will get worse before it improves, perhaps sinking to levels not seen since the early 1980s. The rollercoaster ride will continue for an uncertain period of time because dealers aren't confident enough in market demand to start building inventory at wholesale prices. Without such a wholesale price floor, it's tough to establish profit margins and thus retail prices. So sellers face turbulent conditions well into 2009.
''[In July 2008], the market was still good for large-cabin, long-range aircraft," said Sean Lancaster, vice president of Washington, D.C.-based Bristol Associates, an internationally recognized firm that specializes in business aircraft transactions. "Now, almost everything is cold, including BBJs, Gulfstreams and Globals. There is no wholesale market and I don't know where the bottom is because nobody is buying inventory. Nothing is hot, but if an aircraft is priced insanely cheap, say 20 percent below value, it will sell."
"The market is flooded with inventory, especially with Lehman Brothers and AIG dumping their airplanes," said Marc Foulkrod, chairman of Burbank-based Avjet Corp., a large-cabin, long-range aircraft management and charter firm that also specializes in aircraft sales and purchase transactions.
"Forget the [price] premiums people were used to getting in 2006, 2007 and early 2008 when airplanes sold for up to 120 percent of their original price. The historical core residual value is 85 to 90 percent [of original price] for well-maintained aircraft and it sunk to 70 percent in 2001 through 2003. Now we're correcting back to the norm," explained Mark Bloomer, president of Camarillo, Calif.-based Bloomer deVere Group Avia.
''[In July 2008], the market was still good for large-cabin, long-range aircraft," said Sean Lancaster, vice president of Washington, D.C.-based Bristol Associates, an internationally recognized firm that specializes in business aircraft transactions. "Now, almost everything is cold, including BBJs, Gulfstreams and Globals. There is no wholesale market and I don't know where the bottom is because nobody is buying inventory. Nothing is hot, but if an aircraft is priced insanely cheap, say 20 percent below value, it will sell."
"The market is flooded with inventory, especially with Lehman Brothers and AIG dumping their airplanes," said Marc Foulkrod, chairman of Burbank-based Avjet Corp., a large-cabin, long-range aircraft management and charter firm that also specializes in aircraft sales and purchase transactions.
"Forget the [price] premiums people were used to getting in 2006, 2007 and early 2008 when airplanes sold for up to 120 percent of their original price. The historical core residual value is 85 to 90 percent [of original price] for well-maintained aircraft and it sunk to 70 percent in 2001 through 2003. Now we're correcting back to the norm," explained Mark Bloomer, president of Camarillo, Calif.-based Bloomer deVere Group Avia.
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xxx
Late 1973. Fuel crisis nš 1, the "October War" Israel and Egypt/Syria.
Tricky Dick, also known as President Richard Nixon had 2 VC-137s (707s).
One night, he flew back to California (his home) with Mrs Nixon.
From IAD to LAX, on a commercial scheduled UAL 747 flight.
Apparently, they occupied the upper deck.
Secret Service on board (and flight deck), extra security, etc...
Do not recall the exact details.
United operated their flight as "Air Force One" on R/T.
To the delight - and surprise - of the regular passengers...
xxx
you forgot this point..
On December 23, 1973, then President Richard Nixon flew as a passenger aboard a United DC-10 flight from Washington Dulles to Los Angeles. White House staff explained that this was done to conserve fuel by not having to fly the usual Boeing 707 Air Force aircraft. This however turned out not to be the case as 'Air Force One' (VC137) flew behind in case of an emergency and to return him to Washington
Late 1973. Fuel crisis nš 1, the "October War" Israel and Egypt/Syria.
Tricky Dick, also known as President Richard Nixon had 2 VC-137s (707s).
One night, he flew back to California (his home) with Mrs Nixon.
From IAD to LAX, on a commercial scheduled UAL 747 flight.
Apparently, they occupied the upper deck.
Secret Service on board (and flight deck), extra security, etc...
Do not recall the exact details.
United operated their flight as "Air Force One" on R/T.
To the delight - and surprise - of the regular passengers...
xxx
you forgot this point..
On December 23, 1973, then President Richard Nixon flew as a passenger aboard a United DC-10 flight from Washington Dulles to Los Angeles. White House staff explained that this was done to conserve fuel by not having to fly the usual Boeing 707 Air Force aircraft. This however turned out not to be the case as 'Air Force One' (VC137) flew behind in case of an emergency and to return him to Washington
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Nixon
Goeienaan Springbok -
xxx
At my age - it is a problem to think of events from 35 years ago.
I thought was a 747, you say was a DC-10. Fine for me.
I just somewhat recalled a conversation with a UAL buddy.
Or maybe was news on TV...
xxx
Happy contrails
xxx
...do not recall the exact details
I thought was a 747, you say was a DC-10. Fine for me.
I just somewhat recalled a conversation with a UAL buddy.
Or maybe was news on TV...
xxx
Happy contrails
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This is my opninion about the down turn on aircraft and flight hours.
Big company that has a bizjet payed. Banks don't give financing they sell aircraft and they have money.
Big company has money but not enough to buy the plane, bank gives no money old man dosen't buy the plane.
Big comapny having financial trouble they sell plane and get rid of all departments so as to reduce cost.
Big comapny knows other company with plane one sells his aircraft and shares the other after an agreement of spendingpart of what they got for the sold aircraft.
I have acuatlly lived all these cases myself.
Many companies have spent their benefits in bizaviation as that way they could reduce taxes. Many of those comapnies are not getting any benefits.
On the other side these guys can't stand travelling in airlines and they will come back for sure.
Big company that has a bizjet payed. Banks don't give financing they sell aircraft and they have money.
Big company has money but not enough to buy the plane, bank gives no money old man dosen't buy the plane.
Big comapny having financial trouble they sell plane and get rid of all departments so as to reduce cost.
Big comapny knows other company with plane one sells his aircraft and shares the other after an agreement of spendingpart of what they got for the sold aircraft.
I have acuatlly lived all these cases myself.
Many companies have spent their benefits in bizaviation as that way they could reduce taxes. Many of those comapnies are not getting any benefits.
On the other side these guys can't stand travelling in airlines and they will come back for sure.
