Summary
- Pre-owned business jet market forecast: 10,307 transactions valued at $70.7 billion, average value $7.4 million in 2024.
- Softening market noted by Vref due to high interest rates and market complexities, sales nearly halving in Q1 2024.
- Bombardier offers pre-owned jets with latest reliability improvements, pristine cabins, and painted exteriors, promising excellence.
The business jet market has seen a significant uptick in recent years. The aviation recovery from the pandemic saw large numbers of business jet transactions. Whether it is independent ownership, fractional ownership, or jet charter services, more and more business jets have been sold in the last few years.
As new jets enter the market, pre-owned aircraft become available.
It is common for large corporations, executives, business owners, and celebrities to purchase pre-owned private jets. Aircraft manufacturers and jet management companies offer a wide range of pre-owned aircraft. Gulfstream Aerospace, as one of the largest manufacturers of corporate jets, also sells pre-owned certified aircraft.
Photo: Gulfstream Aerospace
According to Gulfstream Aerospace,
“When you purchase an aircraft through the Gulfstream Pre-Owned Brokerage, you gain access to all the resources of the most trusted name in business aviation. We know Gulfstream aircraft better than anyone. And we are dedicated to helping you acquire, customize and maintain your dream aircraft. With the world’s largest and fastest growing customer support network, we meet you wherever your journey takes you.”
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The pre-owned business jet market
Five-year market forecast
| Pre-owned transactions | 10,307 |
| Revenue forecast | $70.7 billion |
| Predicted average pre-owned transaction value in 2024 | $7.4 million |
| The last five-year increase in share of jet aircraft buyers under 45 | 14% |
| The average number of days a pre-owned aircraft is on the market | 129 |
Jetcraft.com shows that in the next five years, there will be thousands of transactions involving pre-owned business jets, representing over $70 billion in value. Based on the 2024 calculations, an average pre-owned transaction is recorded to be approximately $7.7 million. The information is obtained from recent change-of-hands of business aircraft.
Photo: Juice Dash | Shutterstock
Current softening of the market
An aircraft valuation firm, Aircraft Value Reference (Vref), notes that in the last four quarters (from 2023), the business jet market has been experiencing a period of adjustment, with a notable increase in the inventory and softening of preowned aircraft sales. The agency shows that this phenomenon reflects the shifting of buyer sentiment and evolving market conditions.
In the first quarter of 2024, a pronounced decline was noticed across the market, with sales transactions nearly halving from the first quarter of 2023. According to Vref, as reported by AINOnline,
“The convergence of high interest rates, declining values, election year uncertainties, and global economic issues has led to an increased level of caution among buyers, sellers, and intermediaries alike. “The current state of the business jet market is a reflection of these complexities, signaling a period of strategic reassessment and careful planning as stakeholders aim to mitigate risks and capitalize on opportunities in a rapidly evolving landscape.”
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Pre-owned business jet offerings
Bombardier Aerospace also offers a range of pre-owned aircraft. As one of the pioneers in corporate jets, Bombardiers offers certified pre-owned labeled aircraft that are backed by an exclusive one-year warranty by Bombardier. Bombardier shows that there is a significant demand for pre-owned business jets, and this demand will increase further. The manufacturer promises three major things in its pre-owned offerings,
- Latest improvements in reliability: Bombardier states that each pre-owned aircraft included the latest technological improvements in reliability through state-of-the-art inspection and maintenance.
- Pristine cabin conditions: From a complimentary deep cleaning and sanitization to a fully refurbished interior, Bombardier follows through on its promise.
- Painted exterior: All pre-owned aircraft come with a fresh coat of Matterhorn white paint, enabling customers to add a personal touch to their signature livery.
According to Bombardier Aerospace,
“Just like with all new Bombardier jets, Bombardier Certified Pre-Owned aircraft hold the promise of excellence in quality and reliability. It is all of Bombardier’s expertise and know-how as an OEM that customers can count on to access the most exclusive selection of Bombardier Pre-owned aircraft on the market.“
Aircraft value settling
In the last two years, the value of business jets, particularly in the pre-owned market, has settled. From the highs of 2023, the value of most midsized and super midsized aircraft has depreciated in recent months. This is also related to a slight decline in overall sales since last year. Long-range business jet sales were at a peak in November 2023 and have since gone down.
Photo: Kevin Porter | Shutterstock
The Aircraft Sales & Acquisitions Sales Representative of Duncan Aviation, Doug Roth, predicts a more stable market in 2024 by stating,
“Aircraft prices have come off their highs from the end of 2022 and have settled at a level that could be considered normal market depreciation from the values at the end of 2019, making it more of an opportunity for buyers. The values for the G450 today are just slightly lower than they were in 2019. This price decline results from increased available aircraft for sale and some economic uncertainty among buyers.”
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What are your thoughts on the pre-owned business jet market? Share your views in the comments section.