Aircraft brokers Vance & Engles warn that the large and super-large end of the secondhand business aircraft market is in danger of becoming overheated as scarcity sets in.
Used Gulfstream Vs, Bombardier Global Expresses and Dassault Falcon 2000EXs are among those currently "hot", with demand outstripping supply, the company says. Prices for secondhand examples of the types are rising faster than at any time since the late 1990s. A market is considered balanced at around 10-12% of produced aircraft being available for sale at any time. If there are less than 10% available, it is a sellers' market and more than 12% tips the scales in the favor of the buyer, says Rick Engles, president of Vance & Engles.
Engles says the strong demand is the result of free trade, leading to globalization for oil, pharmaceutical, automotive and textile firms. Aircraft with a range of at least 4,000nm (7,400km) are in strongest demand, with those still in production highest, he says.
Source: Flight International
