Prices stabilize for pre-owned private jets

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New research by Colibri Aircraft, specialists in the marketing, resale and purchase of pre-owned private aircraft, has found that prices for such jets have stabilized after years of volatility.

The study found that the average asking price for six types of popular private jet rose 1.56% over 2016. In 2017, there was a sharp decrease in the rate of depreciation of private aircraft, and in select models even an increase in value. This is good news for the industry after nine years of consistently depreciating prices, including some of the sharpest decreases in value in the preceding four years.

The mid-range Lear 45 jet saw its average pre-owned asking price decrease by 4.77% between 2016 and 2017 compared to a 17.14% decrease the previous year. The Bombardier Global XRS saw the average asking price for a pre-owned aircraft fall by 5.08%, compared to previous annual depreciations of 17.10%, 14.41% and 9.25%.

The larger Gulfstream G550 jet saw a rise of 8.63% from US$22.378m to US$24.308m. This followed a surge in demand where transactions increased by 46% year-on-year. The G550 was one of the more active markets in 2017 and was one of the examples of prices increasing, despite prices declining by 25.96% the previous year.

Colibri Aircraft believes the developments are a result of a fall in the supply of pre-owned private jets for sale, an improving global economy, and an overall increase in demand.

Oliver Stone, managing director at Colibri Aircraft, said, “After years of falling prices for pre-owned private jets, we are finally seeing them begin to stabilize. This is being driven by a fall in the supply of new and pre-owned jets coming on to the market, and an improving global economy, which tends to increase demand for business aircraft and helps to stabilize pricing.”

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Kirstie joined the team in early 2017 and brings writing, communications and client experience with her. Now an assistant editor, she produces content for our magazines and websites. Away from the office, you will find her blogging on her lifestyle website or searching the internet for photos of sausage dogs.

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