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The corporate buyer is back – the industry responds to new levels of demand

The corporate buyer is back – the industry responds to new levels of demand

NAFA member and Jetcraft CEO Chad Anderson discusses the return of corporate buyers in the business aviation market.

At Jetcraft, our client base tends to be evenly split between Ultra High Net Worth Individuals (UHNWIs) and buyers of corporate fleets.

Naturally, during the pandemic, the level of activity from corporate buyers significantly tailed off, with many businesses establishing policies advising against travel.

The good news for our industry is that, with the world once again open for business, corporate travel is increasing, and companies are looking to renew their fleets as they restart their travel planning.

These are market developments that reflect our own optimistic outlook in our recent 5-Year Pre-Owned Business Jet Market Forecast.

Rising to the challenge

Corporate fleet planning, in which businesses begin evaluating opportunities to update their aircraft, typically takes place months in advance of aircraft replacement, meaning a dialogue should be constantly ongoing between aircraft suppliers and buyers.

With these conversations dropping off due to the pandemic, as well as some corporates selling aircraft fleets completely during 2020, there is added pressure on flight departments to act quickly in order to fulfill travel needs.

UHNWI interest in business aviation is still extremely high and aircraft inventory remains relatively low. This makes it even more important for corporate fleet planners to work with the right company to source fleet replacements and manage their transactions.

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This article was originally published by Jetcraft on November 7, 2022.

 

 


 January 06, 2023