Business jet sales and acquisitions company Jetcraft is reporting strong activity at the beginning of 2020 as owners seek faster upgrades to new or longer-range models. This activity can be attributed to the start of the Bombardier Global 7500 resale market, increased trade-in transactions to the company's owned and listed inventory, and the ability to capitalise on both high and low performing regions through Jetcraft's global reach.

“The speed with which buyers are upgrading is unprecedented, with average ownership cycles now taking four to five years, down from the previous seven to 10 years,” explains president Chad Anderson. “The Global 7500 resale market has begun and energy around the product is building. We sold one of the world's first pre-owned 7500 jets at the end of 2019 and closed a second one this past February. We have other 7500 options coming soon, and the more units Bombardier delivers, the more acceptance this flagship seems to receive.”

Jetcraft is seeing a surge in trade-in activity right now, and Anderson continues: “Whether someone is seeking their first aircraft or looking to move to a longer-range model, we're listening to our clients' requests. After seeing high demand for Falcon 900LX aircraft, we recognised a need and strategically targeted and sourced this make and model to bring it to our buyers. We now have three high quality Falcon 900LX listings correctly priced and ready for new owners.”

Another aircraft with notable activity in Jetcraft's inventory is the Bombardier Challenger 605. According to Anderson: “With multiple sales of this model so far in 2020, Jetcraft is in the process of bringing even more 605s to our owned inventory through strategic trade-in transactions against larger aircraft. Of eight Global 5000s listed through Jetcraft, another highly sought-after trade-in model, three have already been sold and interest is high for the remaining jets.”

Despite a softening of demand in some regions due to current economic challenges, Jetcraft's global structure enables buyers from stronger areas such as the Americas to acquire aircraft being sold out of these regions. SVP sales America Chris Brenner adds: “We are experiencing a high velocity of deals in the Americas, as these buyers are capitalising on aircraft coming out of more challenged countries. We expect to see a lot of upgrades happening here throughout 2020, particularly given the US tax law that exists for those who can benefit from bonus depreciation on new or used aircraft.”

As for the effects of the coronavirus on aviation and travel industries, Jetcraft Asia president David Dixon comments: “This is déjà vu for me as I recall only too well the outbreak of SARS in 2002/2003 and the devastation this brought, especially to Asia. But 17 years ago, China was less integrated into the world's economy. As such, the impacts were far more regional, and Asia was hit hard economically. Today, the world is a different place. China is the second largest economy, having grown many times since 2002, supply chains are being impacted and travel is far more restricted than before. Millions more Chinese citizens travel externally now, so tourism and the hospitality industries will feel a huge impact.”