At the height of COVID-19, business aviation experienced a boom. Interest was higher than it had been in several years, maybe ever. People still wanted to fly, but now, they wanted to fly privately. With a huge pool of new buyers and a limited number of new aircraft being manufactured, the demand, and therefore price, of these aircraft skyrocketed. Now, according to a recent AINsight article, the prices of pre-owned business planes have stabilized. Even though prices and availability are returning to pre-COVID levels, there are still less pre-owned jets available than what would have been considered ‘the norm’ before the pandemic. Article writer Joseph Carfagna Jr. believes that these slightly lower rates may just be the ‘new normal’ for pre-owned business aviation. The lower supply is not the only thing that will change for this industry post-COVID. One of the most important changes lies in the hands of MROs.

With a limited pool of pre-owned aircraft to choose from, potential buyers will need to deeply consider their options before making a final purchase. MROs like Pro Star can be instrumental in this process, especially as the supply continues to recover from the all-time lows of the pandemic. While the supply may never quite reach pre-COVID averages, buyers in 2024 still have significantly more pre-owned aircraft to choose from than they did even just two years ago. Despite this, buyers should still err on the side of caution when it comes to choosing which aircraft to purchase. While all of these aircraft may currently be airworthy, there are many underlying factors to consider that may not be readily apparent to potential buyers or even brokers. Multiple aircraft may both be the same make, model, and price, however, only one may have all the necessary equipment for the mission. This information is often down in the weeds and can therefore be easily overlooked. In this ‘new normal’ of slightly lower supply, investigating these facts has become a new kind of hidden service provided by MROs like Pro Star. Pro Star routinely talks with brokers about the status of the avionics equipment to meet the needs of the new owners.

While pricing and supply of pre-owned aircraft continue to return to a new normal, MROs are beginning to offer a new service. This service is equally beneficial for buyers and sellers within the used aircraft market. Regardless if you are a buyer or a broker, a thorough and independent review of the plane’s records can be highly valuable. Even just a quick peremptory glance at some of the more high-profile equipment can help to avoid oncoming problems for a particular aircraft. For example, an MRO may inspect records and find various unsupported and obsolete equipment. Brokers often list aircraft equipment and capabilities but the true story is told when a review of the installed equipment is accomplished. Having Worldwide In-Flight connectivity is not equal across the board. Being equipment with FANS can be very different from aircraft to the next. Even most pre-purchase inspections don’t weigh in on this situation unless specifically asked. PPI are for determining aircraft condition not its ability to perform the mission the new owners desire. It will be cheap to actually locate and verify this equipment, however, a failure to follow through on the aircraft’s equipment could wind up being extremely costly. In addition, once you’ve purchased an aircraft, if its status is not validated by an MRO, it could wind up on the ground for several months while it gets the upgrades it needs to fly. This service MROs are offering in the wake of the industry’s ‘new normal’, is often a free of charge recommendation and cursory evaluation. However it should be rolled into PPI’s in the future. It is something that everyone has yet to take full advantage of. As the industry adjusts to a post-COVID world, services like these help to usher us into a new era for the pre-owned business market. 

Article Link: https://www.ainonline.com/aviation-news/business-aviation/2024-03-22/ainsight-new-normal-preowned-business-aircraft