Jetex Navigates a Changing Pre-Owned Jet Market

As Jetex grows into the pre-owned aircraft sales market, what is the company’s vision, and how does it perceive the current marketplace? Madhu Muraleei shares his insights...

Anyone who has attended NBAA-BACE or EBACE in recent years cannot fail to have noticed the presence of Jetex whose branding and sponsorship efforts have been unmissable.

An industry heavyweight with its global network of Fixed Base Operations and Trip Planning services for business aircraft owners and operators travelling across the globe, Jetex is also an exclusive HondaJet dealer for Honda Aircraft. But if you think that covers all the key areas of Jetex’s business, look again. 

The company has also launched its own pre-owned aircraft sales division – Jetex Aircraft Sales – with Madhu Muraleei (pictured left) as its Aircraft Sales Manager.

“I have more than 14 years’ experience working in Business Aviation,” Madhu explains. “And I have been actively involved in business and commercial aircraft sales and leasing worldwide for the last ten.”

The holder of an FAA commercial pilots license, Madhu recently joined Jetex to help build the division, which has also become an active member of the Global Licensed Aircraft Dealers Association (GLADA).

“As many will know, Jetex has first and foremost been an exclusive dealer for HondaJet for the last four years,” Madhu says. “But with Honda, like all the other OEMs, having full order books and customers asking for more options and earlier delivery times, we recently started offering pre- owned aircraft solutions too.”

Covering all pre-owned aircraft models from Light and Mid-Size Jets all the way through to Large Cabin and Ultra-Long-Range Jets, requests have been received from customers based in almost every major region of the world.

Through an extensive global network and an experienced in-house team, Jetex Aircraft Sales says it sources the best aircraft for individual buyers, including those not openly listed on the market – “we are confident we offer access to the widest selection,” Madhu claims.

The company also seeks to provide a wide range of services to buyers and sellers of pre-owned aircraft, each of whom has a very specific set of requirements. Those services go beyond successfully navigating the transaction, to getting the aircraft fully operational and flying.

“Our team provides specialism in sales and acquisitions, aircraft valuation, marketing, leasing services and Pre-Purchase Inspections,” Madhu highlights. “The aim is for Jetex Aircraft Sales to be a one-stop solution both for new and existing aircraft owners.”

Current Pre-Owned Business Jet Market Dynamics

This time last year, the pre-owned aircraft sales market was ablaze with activity. Inventory had reached record low levels, the [on-market] supply of like-new jets was almost non-existent, the time it took for an aircraft to sell had plummeted, and sale prices were consistently increasing for the first time since before the global recession of 2008/09.

“The market environment is drastically different since last year,” Madhu reflects. “Price reductions have replaced the premiums buyers were willing to pay, and sellers are finding it a bit more of a struggle to find buyers for their aircraft.”

However, while he agrees that this marks a correction point in the market, Madhu disagrees that aircraft inventory is increasing across the board.

“The inventory is increasing only in certain categories of jets like the Bombardier Global 5000 and Global 6000, and Gulfstream G650 and G550 (for example). And while prices have been trending down on these aircraft, they haven’t dropped substantially.”

For example, Madhu recently came across a 2011 model Bombardier Global 5000 with an asking price of $17.8m, whereas the same jet would have sold at $11– 13m pre-Covid. “Of course, the litmus test will be whether the seller can achieve anything near to the price they’re asking,” he adds.

Nevertheless, as the pre-owned market restocks with newer aircraft for sale, Madhu believes further price corrections will occur across the board, including among the OEMs who may resort to price discounting tactics as lower-priced ‘like-new’ pre-owned options become more abundant for buyers.

“As alluded to earlier, delivery times from many manufacturers currently stand at three years, meaning someone who placed an order for a new aircraft now will not receive it until 2026,” he says. “This may also contribute to keeping the demand for pre-owned aircraft high for the foreseeable future.”

Tips for Buyers and Sellers in Today’s Pre-Owned Jet Market

These are undoubtedly interesting times, with shifting tides in the pre-owned marketplace, and both buyers and sellers would do well to approach it knowledgeably.

“Today’s buyers need to understand the resale value of the aircraft,” Madhu says, reflecting on the delirious nature of the seller-driven market of recent years. “A business jet is an expensive asset and must be purchased at the right price.

“Many aircraft are still being sold at a higher price than their market value due to supply and demand pressures,” he adds, highlighting that it’s important not to be held to ransom but take time over acquiring the right jet at the right price.

“Sellers who are thinking about entering the pre-owned market today will still find they’re entering a seller’s market, but they will find it tougher to find buyers willing to spend premiums.”

Thus, Madhu concludes, sellers are best advised to utilize the market intelligence of an experienced broker like Jetex to establish the true value of their jet in today’s market, thereby quickening the time it takes to find a buyer while optimizing the sale price.

More information from  www.jetex.com/aircraft-sales

Read more Business Aviation Market Insights