NAFA member, Joseph Carfagna, Jr., Partner, President & CEO of Leading Edge Aviation Solutions, discusses corporate aircraft.
I am not the only aircraft sales professional you have heard talk about the iconic decrease in supply of pre-owned corporate aircraft. But why do we think we are here, and where do we think things may be headed? Let’s discuss & add up all of the ingredients…
- A strong stock market for a long time
- Unprecedented low interest rates (not for long now)
- Loads of new wealth that has been created in recent years
- The global pandemic
- Big tax incentives (which are scheduled to begin rolling back after 2023)
This all adds up to a frothy mix of ingredients that have caused this shift.
We now know that approximately 30% of all pre-owned corporate aircraft sales in 2021 were to first time buyers. This is a huge factor – first time buyers do not have an aircraft to sell before buying another.
In sum, corporate aircraft have become like oceanfront Palm Beach real estate – hard to find, and you will pay a premium to get the one you want.
This article was originally published by Leading Edge Aviation Solutions on February 16, 2022.