MEBAA: Jetcraft: Hot market to continue in 2023

“The market peaked in September/October when we were in a situation where there was almost no aircraft availability,” said Bachmann. “Inventory is rising a bit but demand exceeds supply so prices will remain stable.

“There are a lot of buyers who are waiting. They will enter the picture in Q1 and Q2 and that will drive the market.”

The past two years have been stellar for Jetcraft. It performed 121 aircraft transactions in 2021, it highest ever, and expects a similar volume this year, with 17 aircraft deals to close before year-end, said Bachmann.

Despite headwinds such as global recession and the war in Ukraine, it will remain a sellers’ market for business aviation aircraft well into 2023 driven by high market demand and the lack of aircraft availability, he said.

The Middle East and African regions for private business travel have boomed post-Covid with many entering business jet operations as airlines stopped flying. And this will continue. “Once discovered it’s difficult to go back,” he said.

Jetcraft performed 12 transactions in this region in 2021 and the market is going to increase. “We are seeing increasing potential in this region and in Africa,” said Bachmann. His optimism is based on Dubai’s excellent global connectivity and the fact that airline networks in Africa offer poor intra-region services, both promoting the rise of business aviation.

“Our customers in Africa need large aircraft and they need range,” said Bachmann.

The need for larger aircraft means Jetcraft records an average aircraft transaction price in this region of $21 million, compared to Europe, where it is $16 million to $17 million and the range requirement is less.

In its recently released Pre-owned Business Jet Market Forecast 2022-2026, the standout trend Jetcraft has seen over the past five years is the rising number of buyers under 45. It rose to 27% of buyers in 2021 from 7% in 2017.

It is not clear exactly what is driving this trend but what is clear, according to Bachmann, is that for the young entrepreneurs entering the sector “business aviation gives them an edge”.

Jetcraft, owned by board chairman Jahid Fazal-Karim, has been celebrating its 60th anniversary this year and will hold a reception downtown for customers during the show. The business has performed more than 800 aircraft transactions, worth $14 billion, over the past decade.