Asian Sky Quarterly - Q3 2020

Q2 2020 – GLOBAL MARKET UPDATE: GLOBAL JET CAPITAL
TRANSACTIONS
BUSINESS JET TRANSACTIONS
New
Pre-Owned
$7.3B
(843 Units)
46.9%
53.1%
$6.0B
(709 Units)
48.9%
51.1%
$8.8B
(952 Units)
44.6%
55.4%
$5.8B
(629 Units)
43.1%
56.9%
$6.8B
(760 Units)
41.1%
58.9%
$6.9B
(738 Units)
38.9%
61.1%
$807B
(1003 Units)
39.2%
60.8%
$5.1B
(605 Units)
46.0%
54.0%
$4.3B
(490 Units)
39.7%
60.3%
2018 Q2
2018 Q3
2018 Q4
2019 Q1
2019 Q2
2019 Q3
2019 Q4
2020 Q1
2020 Q2
YOY% CHANGE IN TRANSACTION $ VOLUME
60%
40%
20%
0%
-20%
-40%
-60%
2018 Q2
2018 Q3
2018 Q4
2019 Q1
2019 Q2
2019 Q3
2019 Q4
2020 Q1
2020 Q2
Q2 2020 MONTH-BY-MONTH PERFORMANCE
$0.4B
(79 Units)
53.6%
46.4%
$0.7B
(100 Units)
40.8%
59.2%
$1.1B
(147 Units)
28.7%
71.3%
April May June
The outbreak of COVID-19 has had a substantial impact on business
jet transactions. While transaction value was down in January and
February, unit volume was up 6.6 percent compared to the same
period in 2019, setting the stage for a stable year with potential
upside in 2020.
Between April 2020 and June 2020, transactions increased
sequentially, rising from $869 million in April to $2 billion in June.
Sequential increases through Q2 are a typical dynamic for business
jet transactions and a sign that the market may normalize once the
COVID-19 threat abates.
However, after the World Health Organization (WHO) officially
declared COVID-19 a global pandemic on March 11, 2020, business jet
transactions declined. As nations implemented social distancing and
“stay-at-home” orders, it became difficult to conduct the necessary
activities to buy and sell aircraft (e.g. inspect the aircraft, travel to a
location to deliver or pick up the aircraft, etc.). Furthermore, many
business jet OEMs and suppliers shut down or slowed operations,
delaying new deliveries. In Q2 2020, transactions declined 35.5
percent, while transaction value declined 37 percent.
THIRD QUARTER 2020 — ASIAN SKY QUARTERLY | 37