The last few weeks have been a surreal experience for the business aviation community and our country. We have seen motionless aircraft and aircraft transactions have slowed substantially. Our entire community has been radically redefined. The two questions on everyone’s mind are:
This is the first time in modern history that the world’s largest economy has essentially been put on pause. At this point, buyers are looking for deals and sellers are keeping price reductions to a minimum. This leaves both parties firmly on the sidelines waiting to see how this all plays out. It’s clear that we aren’t going to flip a switch and open the economy back to normal. The economic restart will be a slow and an uphill climb for at least the next 18 months. Those buyers with the financial means to take advantage of a dip in prices will more than likely get their chance as the second quarter approaches. We cannot and will not speculate on the extent of the aircraft valuation drop, but be assured there will be a decline in aircraft value over the next two to three quarters.
As we enter a recessionary cycle, the one thing to keep in mind is that not all recessions are the same. We entered this recession unlike the last one. Our economic fundamentals are sound and aircraft prices were not over inflated as in 2008. The optimistic aircraft owner will see a silver lining and opportunity to capitalize on. Is it possible that people and businesses shy away from airline travel and we see a surge in corporate jet charter? Have no doubt, people will want to avoid crowds and lines for the near term, which will make corporate jet travel all the more appealing. With over 300 million Americans given some sort of cautionary stay at home order, there will be a built-up demand for travel. Corporate jets might just be the chariots to freedom for the isolated masses.
Some have said another recession or even another depression. We do agree that the economic forecast does look bleak but we are ensuring our clients that the sky is not falling. The largest economy in the world will not vanish, but rather be redefined by optimistic visionaries who dare to step outside their comfort zones and change how they do business. Omni Aircraft Sales and Omni Air Transport have the unique team in place to assist our clients with the challenges that lie ahead.
This perfect mix of market conditions should encourage buyers and sellers
Those who know Ryan know his longtime passion for planes. As a matter of fact, Ryan soloed his first aircraft before receiving his driver’s license at age 16. Today, he holds multiple jet type ratings (LRJET, CL604 and B737) and is responsible for aircraft sales, brokerage, acquisitions, market analysis, data research and special projects. Ryan puts client needs first, always respecting time and understanding the importance of investments. Outside the world of aviation, Ryan enjoys spending time with his two children and heading out to the golf course as often as possible.
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