2019 was a strong year for business aviation, with private jet deliveries at their highest level in a decade, as the General Aviation Manufacturers Association (GAMA) reported this week. Aircraft deliveries increased in value by 10%, up to $26.8bn in 2019, compared to $24.3bn in 2018.
Growth by manufacturers is needed by the pre-owned market as buyers continue to trade up to newer models, so the 2019 results are extremely encouraging – particularly for long-range aircraft manufacturers such as Gulfstream, Bombardier and Dassault. As owners upgrade, they release relatively young pre-owned jets onto the market, creating value alternatives for buyers who can or will consider pre-owned options.
It is expected that pre-owned inventory will begin a nominal increase in late 2020 as more new models are introduced and Jetcraft anticipates a good velocity of deals throughout 2020 given the USA tax law that exists for those who can benefit from bonus depreciation on new or used aircraft.
In terms of regional growth, over the past five years the industry has been talking a lot about Asia rivalling Europe for market size. Global events, such as the USA/China trade war and coronavirus, have slowed this market’s progression, so the Americas will continue to be the most dominant for business aviation, followed by Europe.
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