Aircraft Interiors International
  • News
    • Aircraft Safety
    • Aircraft Seating
    • Airline News
    • Airframer News
    • Cabin Design
    • Catering & Onboard Retail
    • Galleys & Monuments
    • Industry News
    • Inflight Amenities
    • Inflight Connectivity
    • In-flight Entertainment
    • Materials. Trim & Finish
    • MRO
    • Passenger Experience
    • Passenger Health & Safety
    • Sustainability
  • Features
  • Online Magazines
    • June 2025
    • March 2025
    • Design Showcase 2025
    • November 2024
    • March 2024
    • November 2023
    • Archive Issues
    • Subscribe Free!
  • Opinion
  • Videos
  • Images
  • Supplier Spotlight
  • Jobs
    • Browse Industry Jobs
    • Post a Job – It’s FREE!
    • Manage Jobs (Employers)
  • Events
LinkedIn YouTube X (Twitter)
LinkedIn YouTube
Subscribe to Magazine Subscribe to Email Newsletter Media Pack
Aircraft Interiors International
  • News
      • Aircraft Safety
      • Aircraft Seating
      • Airline News
      • Airframer News
      • Cabin Design
      • Catering & Onboard Retail
      • Galleys & Monuments
      • Industry News
      • Inflight Amenities
      • Inflight Connectivity
      • In-flight Entertainment
      • Materials. Trim & Finish
      • MRO
      • Passenger Experience
      • Passenger Health & Safety
      • Sustainability
  • Features
  • Online Magazines
    1. June 2025
    2. March 2025
    3. Design Showcase 2025
    4. November 2024
    5. September 2024
    6. May 2024
    7. March 2024
    8. Archive Issues
    9. Subscribe Free!
    Featured
    June 6, 2025

    The June issue of Aircraft Interiors International is out!

    Features By Web Team
    Recent

    The June issue of Aircraft Interiors International is out!

    June 6, 2025

    The March 2025 issue: How to make truly sustainable cabin choices, why First Class is back, ANA interview

    March 6, 2025

    The 2025 Aircraft Interiors International Showcase issue

    January 13, 2025
  • Opinion
  • Videos
  • Podcast
  • Images
  • Supplier Spotlight
  • Jobs
    • Browse Industry Jobs
    • Post a Job – It’s FREE!
    • Manage Jobs (Employers)
  • Events
LinkedIn YouTube
Aircraft Interiors International
Opinion

Low supply and high demand in the pre-owned jet market

Opinion WritersBy Opinion WritersAugust 16, 20214 Mins Read
Share LinkedIn Twitter Facebook Email
a crew member on a private jet holding a tray of champagne

Analysis of AMSTAT data by Colibri Aircraft, a private jet broker which specialises in the marketing, resale and purchase of pre-owned private aircraft, reveals that only around 4.65% of the pre-owned jet fleet is for sale – the lowest level since records began in the 1980s. In total, around 1,134 private jets are for sale globally, compared to approximately 1,839 in June 2020 – a decline of over 38%.

This low inventory, plus a drop in the number of new private jets being delivered – down 20% last year from 2019 (the lowest number since 2004), means that despite a difficult market for commercial aviation and travel in general, the private jet sector has been experiencing high levels of demand.

Buying private jets is extremely difficult right now, particularly for Europe-compliant aircraft. Multiple buyers and a shrinking inventory of available aircraft have made for a very competitive market. We recently tried to purchase a late-model Challenger 650 for a client, and at least six offers were made for this aircraft, which ended up trading close to its headline asking price. To say that the market is competitive at the moment is an understatement.

The decline in the supply of private jets has been led by the USA, which re-opened far quicker than other parts of the world. Key factors driving the dramatic drop in the supply of private jets for sale was a strong desire to travel in an environment with far lower risk of Covid transmission – there are as many as 680 fewer person-to-person interactions when flying by private jet compared to commercial (GlobeAir data) – and a significantly reduced airline service making airlines less convenient, which meant that more owners of private jets wanted to keep hold of their aircraft and a large number of first-time buyers entered the market.

In addition to this, surging asset prices in stock markets and real estate, historically cheap debt due to government stimulus, and depreciation benefits that applied to private jet purchases, removed many of the financial pressures some owners might have been under to sell their aircraft in more normal circumstances, and also encouraged new buyers to act.

Finally, as inventory declined so rapidly we found that current owners are often holding onto their current aircraft as they struggle to find a suitable replacement in such a supply-constrained environment, further decreasing the aircraft that are becoming available for sale.

New versus pre-owned

One of the biggest reasons for the popularity of the pre-owned market compared to new aircraft is the price difference. Colibri Aircraft says depreciation has been a constant feature of aircraft since the financial crisis in 2008, and thus a pre-owned aircraft typically offers significant savings on the purchase price.

This proposition of similar utility for a lower purchase price has driven the popularity of the pre-owned market. To illustrate this point, of the top 20 best-selling jet types in 2020, 14 of those models were trading for under US$2.5 million. Given that the lowest price for a new private jet (a single engine, light jet) is around $3 million, it suggests that many buyers are taking advantage of the value of pre-owned aircraft.

Another difference is the purchase cycle. New aircraft manufacturers will normally have pre-sold several months of their annual production quotas, and as a result buying a new aircraft usually entails waiting several months, or longer, for it to be built and delivered. Pre-owned aircraft have a shorter purchase cycle, taking several weeks once the right aircraft has been identified. For clients for whom timing of entry into service is critical, pre-owned jets normally offer a faster path to do so. This was especially true during 2020, when many new buyers wanted to have an aircraft to avoid airports and needed a faster entry into service than a traditional new aircraft purchase would provide.

Finally, it cannot be overlooked that the difference in size of the inventory available between pre-owned and new jets is substantial. Inventory of new aircraft available each year is determined by OEMs which, in general, try to keep a certain inventory level to maintain stability. As a result, new buyers have only around 700 aircraft per year to choose from. The contrast from the pre-owned market, which currently comprises over 20,000 jet aircraft and growing, is significant. The sheer size of the pre-owned jet fleet leads to a larger number of transactions each year as owners buy, upgrade or leave ownership.

Colibri Aircraft Ltd specialises in the marketing, resale and purchase of pre-owned private aircraft around the world.

 

Share. Twitter LinkedIn Facebook Email
Previous ArticleHow the aircraft seating market will reach US$ 16.5 billion by 2027
Next Article FAA: Here’s how to behave on a plane
Opinion Writers

Related Posts

Airframer News

Why there could be up to 800 commercial aircraft orders at Paris Air Show

June 10, 20259 Mins Read
Opinion

The satellite laser communications market is set to grow at 40% CAGR

June 3, 20253 Mins Read
Catering & Onboard Retail

A new era for in-flight connected commerce

May 29, 20254 Mins Read
Latest Posts

Embraer sees huge growth potential for intra-African air connectivity

June 16, 2025

News from the rail sector: Tshiuetin Rail installs Butterfly flexible seating

June 16, 2025

Mankiewicz wins two Airbus supplier awards

June 16, 2025
Supplier Spotlights
Our Social Channels
  • YouTube
  • LinkedIn
Getting in Touch
  • Subscribe to Magazine
  • Meet The Editors
  • Contact Us
  • Media Pack
Related Topics
  • Aerospace Testing
  • Business Airport
  • Business Jet Interiors
FREE WEEKLY NEWS EMAIL!

Get the 'best of the week' from this website direct to your inbox every Wednesday


© 2023 Mark Allen Group Ltd | All Rights Reserved
  • Cookie Policy
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.