Story ID: 
Uncertainty Stifling Used Bizjet Values, Sales
By: Jerry Siebenmark
Caption: Mente Group blames political and economic uncertainty for lower used business jet pricing, sales.
Word Count: 263
A little more than three months into 2019, activity and pricing in the used business aircraft market is mixed amid political and economic uncertainty in the U.S. and abroad, according to a report from business aviation consultant and broker Mente Group. The Dallas-based group said an increased availability of good preowned inventory and limited access to pre-buy inspection facilities because of high demand for ADS-B conversions are contributing to an "in-flux" preowned market.

“As a result, we are beginning to see decreasing market values in what were relatively strong sectors last year,” said Mente Group CEO Brian Proctor. “Some of the higher-end markets are giving back price gains realized last year in a more buoyant environment.”

Price gains made last year on used super-midsize and larger business jets have been erased, Proctor explained. For example, the 8 to 10 percent price gains on Bombardier Challenger 350s last year are gone this year, he noted, as are the 5 to 8 percent price increases on Gulfstream G550s. “Challenger 300s were up about 15 percent in 2018 and today they’re down about 10 percent,” Proctor added.

In terms of international market activity, a modest recovery has begun in South America, with stabilization in Brazil, Chile, and Argentina explained Cole White, who leads Mente Group’s strategic consulting division. “However, there is obviously upheaval in Venezuela that is expanding to its neighbors.” Activity is up in Eastern Europe, but Brexit concerns are stifling it in Western and Central Europe. “Until that gets figured out, we won’t see much activity there,” White said.