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It didn’t happen suddenly and without warning. The signs were there: Dealers and brokers handling pre-owned business- turbine aircraft called the signs of a slow decline in transactions, but by the time the economy started its tire-screeching collapse in late 2008, the slowly developing slump in pre-owned sales morphed into a fully-fledged rout.

In 2010, according to the forecasts, the market recovery was supposed to start in 2012. In 2011 surety fell by the wayside in favor of a sense of gloom at the possibility of recovery moving further out, past 2012 into 2013. Now the market is full-tilt into 2012 and based on the signs of the last few months, the Business Aviation market - both preowned and new-production segments.....

In truth, my first thought upon being tasked with writing the following article, was that the topic seemed pretty unnecessary. Surely anyone reading this publication already has a good understanding of the aircraft sales transaction process, I mused. Furthermore, several of my friends and family objected because they believed that I would be giving away trade secrets.

Would it be tax uncertainty, or unrelenting spending-shyness? Perhaps it’s the poor business climate, or maybe it’s been mugged by businesses engaged in their own bet-hedging? Alternatively, it could be a reaction to Europe’s financial struggles, or a realization that the existing aircraft still works fine? If you are looking for an excuse to do nothing, the word “uncertainty” is getting most of the action these days – despite numerous and monumental certainties that should normally dwarf the doub

Rated AA+: If you were to assign that rating to any airplane or any segment of general aviation we would all be quite happy. However, that S&P rating and the political dithering surrounding it are causing widespread unhappiness. While most of the general aviation marketplace does not get a Demand Rating of AA, there has been a surprising amount of activity.

This month we provide an update on the pre-owned business aircraft industry market trends before scrutinizing the numbers by weight classifications (MTOW). After more than two years of decline, our expectations had been that 2011 would be another year of correction with high hopes for sustained growth starting in 2012 and beyond.

It shouldn’t be happening like this. Despite all kinds of signs that the economy is picking up, we continue to see disappointing results in new aircraft deliveries. The latest report by the General Aviation Manufacturers Association (GAMA) is out and the message regarding recovery is clear: It’s just not happening. GAMA released the report for the second quarter of 2011 in August, and to be completely candid, the results were abysmal.

In this month’s JETNET >>KNOW MORE we will provide a status update for the year 2011 as it continues to unfold. After more than two years of industry decline, our expectations were that 2011 would be another year of correction with high hopes for sustained growth starting in 2012.

On balance, the signs in the used aircraft market seem to concur: business people are moving back to using their business aircraft. They are reducing their use of the airlines and charters in favor of using airplanes they own or share.

Uneven…Mixed… These words continue to plague today’s pre-owned marketplace. When we take a closer look, however, this market continues its transition to normality – or at least ‘the new normal’. Inventory is eroding away, ever-so-slowly.