Buyers to determine jet prices in 2020

According to a new analysis by the brokerage and consulting company Mente Group, the current year will be stable in terms of sales of used business aircraft in US Dollars, but one should not expect that 2020 will be a record year in terms of sales in quantitative terms. The company, based in Dallas, believes that in the secondary market the year will be smooth with a slight decrease in the number of aircraft sold.

“In general, the secondary business jet market has moved from the seller’s market in early 2019 to a more balanced market in the middle of the year, and we ended the year mainly in the buyer’s market,” said Brian Proctor, President and CEO, Mente Group. “We expect the trend to carry over to 2020, possibly with fewer transactions and increased price sensitivity for used business jets.”

According to Brian Proctor, the last two weeks of 2019 have been active transactions with high amounts and large business jets. “For us, as a dealer, this was the largest volume of transactions in dollars over the past 10 years, and I expect this to be true for the industry as a whole.”

He expects that in 2020 the market will depend on prices, with the highest activity being observed in the first and fourth quarters. But buyers will be mercantile. “Buyers seek utility where they can find it,” Proctor explained. “Over the past couple of years, a lot of wealth has been created, and these buyers will continue to buy if and when they see good deals on the market.”

Price sensitivity will put pressure on sellers and manufacturers, as well as on their used and new business aircraft. “Sellers and manufacturers of new aircraft will have to very, very quickly respond to what will happen on the market in 2020,” he added.

Source – http://www.bizavnews.ru/

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