Business aircraft brokerage and consultancy Jetcraft is teaming with aviation investment firm AeroVentures as its exclusive trading partner. Founded by former Jet Edge International CEO Bill Papariella, AeroVentures specializes in strategic investments in aviation enterprises throughout the brokerage, technology, and infrastructure categories.
“For Jetcraft, AeroVentures gives us access to Bill’s extensive network supported by strong credit lines, creating even more opportunities for our customers,” said Jetcraft CEO Chad Anderson. He added that Jetcraft offered AeroVentures “access to a leading transaction team located all over the world that’s backed by proprietary data analytics.”
“As the private aviation industry continues to experience shifting demand, AeroVentures looks forward to helping Jetcraft further succeed by accessing our capital on a global scale for aircraft transactions across the world,” Papariella said.
Anderson told AIN that the used aircraft market has returned to equilibrium and that increased interest rates will have a de minimus overall impact going forward, but could slow down the pace of transactions, save for this year’s fourth quarter when “nobody’s going to sleep well.”
“We have so many deals [in the works]. People are really starting to pull the trigger, and I think you’re going to see an extraordinary rush here in the fourth quarter,” he said. Anderson said the supply of used business aircraft on the market “has basically doubled” to 5 to 8 percent “of any given fleet for sale.”
“That's right back to where it should be. Demand was outpacing supply for the last two years. Now supply has caught up to the demand and demand has moderated back to a more rational level. That’s a good thing for buyers,” he said.
Valuations likewise have returned to normal, Anderson said. “If you take a look at where the values are today, values have come down and in most cases, they've come down to, let's call it 2019 levels for the most part, which were never extraordinary values to begin with.”
He credited OEMs, many of which are still supply-chain constrained, with not flooding the market with new aircraft to meet a temporary surge in demand. “They did a good job managing it,” he said.
Anderson said large-cabin and super-midsize jets continue to lead the market and that “the U.S. is still the biggest barometer” for the industry. However, he added, “Asia, and in particular Southeast Asia, has been an amazing bright spot for the market.”