The Buying Continues…
In February of 2021, Bombardier announced that they would end the production of the iconic Learjet line of aircraft. As a professional aircraft broker, I found myself holding my breath a bit in anticipation for what this meant for the future of the pre-owned Learjet markets. Would buyers discount the Learjet considering it would no longer be in production? Would sellers flood the markets with aircraft in anticipation of falling prices? As we now know, none of these fears came to pass. Rather, quite the opposite has happened. The Learjet markets have seen ferocious buying over the last few quarters leading to record low inventory. While at the same time, acquisition clients continue to stack up chasing less and less available options. The good news, as acquisition experts, we continue to buy and sell Learjet’s in this tight market environment. The trick is knowing where to look and how to buy right.
As discussed, quality pre-owned aircraft have been harder to come by over the last two quarters. Inventory numbers are the lowest that the industry has seen in over two decades and prices are holding stable. Just 12 months ago, the number of mainline Learjet’s (40, 45, 60, and 75) for sale was 139 aircraft. Today, that number has dropped by 55% to just 77 aircraft for sale. Moreover, average asking prices and values have stabilized and even ticked up in some Learjet markets. Additionally, in what is normally a linear line down to account for depreciation, the VREF Very Light Jet Index values have been flat over the past three quarters. The Learjet markets find themselves with record low supply and high demand. Another important point to mention is that there seems to be no changing in the tides. Until inventory builds back up to more normal levels, the pre-owned Learjet will continue to be a solid seller’s market.
All this data may seem discouraging to hopeful buyers, but rest assured there are still decent options available if you hire a broker for representation that knows where to look for your next aircraft. Over the last quarter, Omni Aircraft Sales has been successful at both buying and selling the Learjet despite low inventory and steep competition. Over the last 38 years we have built a solid client base for the Learjet, giving us an inside track on the Learjet markets. We leave no stone unturned when tasked with Learjet acquisitions. As such, our success in buying Learjet’s in these stingy markets has been to the benefit of our clients. Your next Learjet is out there, you just need someone to go find it for you.
By Ryan Linn and James Norris