Inventory in Short Supply
Apple pie, baseball, and Learjet? OK, maybe that’s a stretch, but the Learjet is truly an American staple. The Learjet brand has seen good days and some not so good days these past 12 months, but the path back to a normal Learjet market is underway. Aided by a big boost in Q4 activity, the Learjet has found itself on firm ground in 2021. Buyers have reappeared and sellers are continuing to engage. The fog of 2020 is beginning to clear and the road forward shows real promise.
Most people who are familiar with the pre-owned Learjet markets will tell you that for the better part of 2020 sales of the Learjet type were few and far in between. The dam broke and buyers returned in the last few months of 2020, leading to what felt like a black Friday type buying frenzy. This frenzy led to 38 Learjet sales in December alone for the Learjet 40, 40XR, 45, 45XR, 75, 60, and 60XR markets. Available Learjets for sale took a large fall of 35% to 109 aircraft currently for sale. What does this mean to the Learjet owner and buyer as we enter Q1 of 2021? Inventory numbers are much lower than a few months ago so buyers are seeing less aircraft to choose from, making their search more extensive. Sellers, on the other hand, might get relief from the stagnation of 2020. Whatever side of the spectrum you find yourself on, once the inventory numbers start to tick back up, the normalcy of the Learjet markets should return to equilibrium.
In order for the Learjet markets to continue their return to normal, it’s going to take calmer waters than what we have experienced these past 12 months. The financial markets continue to stay fluid, which will assist in a strengthening Learjet market. Even though inventory numbers are down, there is still a decent selection of available aircraft. As we look forward, one of the key elements that continues to hang in limbo is the future tax benefits that could be in jeopardy in the months and years to come. With continued stability and barring any outrageous stance in the tax code, 2021 should provide a nice bridge to recovery for the Learjet markets. As a broker who represents both buyers and sellers for all Learjet types, there is a healthy amount of optimism on both sides that will help propel these markets back
By Ryan Linn and James Norris