IADA: Preowned bizjet market is rebalancing
Expectations in the preowned business aircraft marketplace for the next six months have increased. That’s according to the First Quarter 2023 Market Report’s global perception survey of members of the International Aircraft Dealers Association (IADA). IADA dealers ended the first quarter with 197 aircraft under contract, compared to 259 a year ago, and 248 in the first quarter of 2021. Interestingly, 52 of the first quarter 2023 transactions experienced lowered prices while only six did the same period a year ago and 27 in the first quarter of 2021. There has been some replenishment of inventory levels and a return to more rational pricing and valuations. Even though macroeconomic forces, geopolitical tensions, and the latest banking crises flood the headlines, customer interest appears to remain high. While 2023 activity levels – aircraft sales, flight activity, MRO shop demand – have generally slipped back from record highs in 2022, the market remains vibrant.
“There is evidence that demand and supply forces are rebalancing, with less frenetic activity, more realistic pricing, and a slow but steady buildup of available inventory,” said IADA Chair Zipporah Marmor, VP of Transactions for ACASS in Montreal. “Although pre-owned inventory levels have begun to slowly replenish, most OEMs have grown their order backlogs to represent more than two years of production and they are straining to accelerate deliveries in the face of slowly recovering supply chains,” noted IADA Executive Director Wayne Starling. “Our organization foresees a continuation of relatively tight market conditions through 2023, driven by customers who cannot or will not wait two or more years to receive their next aircraft,” Starling added. The report is available for download at:
Flexjet pulls out of planned public launch
Flexjet announced earlier this month that it has agreed to terminate its previously announced business combination agreement with Horizon Acquisition Corporation II, a publicly traded special purpose acquisition company, that would have resulted in Flexjet becoming a publicly listed company. As a result of the termination, Flexjet will remain a private company.
“Because we have been dedicated stewards of our capital, there will be no impact on the growth initiatives we have launched during the past several years, which remain full steam ahead,” said Flexjet Chairman Kenn Ricci. “We believe that the decision to terminate at this time is in the best interests of our aircraft owners, employees, and other stakeholders.” Flexjet will remain opportunistic with respect to all capital markets and available opportunities moving forward. Added Ricci, “Our position of strength gives us the flexibility to access the public markets at the appropriate time.” www.flexjet.com
UK government to mandate SAF by 2025
The UK government is planning to mandate the use of Sustainable Aviation Fuel (SAF) by 2025, according to a new report from its working group Jet Zero Council. The Jet Zero Council (JZC) is a partnership between industry and government, with the aim of delivering at least 10% sustainable aviation fuel (SAF) in the UK fuel mix by 2030 and zero emission transatlantic flight within a generation.
The group’s two-year plan to establish and accelerate the delivery of SAF includes a SAF mandate consultation which will open for responses this month, assessing feedback from this in the third quarter of this year, confirming the details of the mandate policy in Q1 2024 and legislating the mandate in Q4 2024, ready to start in 2025. It added the goal of having at least five commercial-scale SAF plants under construction by 2025. Alongside SAF, the government said it would invest more than £1m into research on the development of liquid hydrogen aviation technology. www.gov.uk
People: Former Gulfstream President Larry Flynn dies at age 71
Larry Flynn, former president of Gulfstream Aerospace and vice president of General Dynamics, died April 12 after a battle with cancer — he was 71. Flynn retired from his full-time role with the Savannah, Georgia manufacturer in 2015 for health reasons but he remained on boards of companies including Duncan Aviation and Heads Up Technologies. And his legacy continued, including being named a Living Legend in Aviation in 2020. “Gulfstream is saddened to hear of the passing of Larry Flynn,” said Mark Burns, who succeeded Flynn at the helm of Gulfstream. Burns added that during Flynn's tenure as president of Gulfstream, the OEM notched many accomplishments, including the launch of the G500 and G600, as well as the G650ER, all in 2014.
Born Feb. 13, 1952, Flynn had grown up in a flying family. His father, a TWA pilot for 38 years, had taught him and his two brothers to fly. Flynn had obtained a bachelor’s degree in business administration and a master’s degree in manpower management from the University of Kansas.” His aviation business career traces into the early 1980s, when he held several roles within the FBO sector, including as v-p for Stevens Aviation, as regional v-p and general manager for AMR Combs, and as regional v-p for Signature Flight Support. He joined Gulfstream in 1995, holding positions of increasing responsibility, serving as senior v-p of marketing and sales, and then president of Gulfstream Product Support. He was named president of the company in 2011. In addition to his service at Gulfstream, Flynn became involved in industry advocacy, serving on the boards of directors of the General Aviation Manufacturers Association and Professional Aviation Maintenance Association, as well as the NBAA Associate Member Advisory Council.
“Larry Flynn was a staunch champion of business aviation. Larry led an Illustrious career and devoted himself to furthering the recognition of the importance of general and business aviation," said GAMA president and CEO Pete Bunce. Larry Flynn was married and a proud father and grandfather