Asian Sky Quarterly 2022 Q4

GLOBAL
BUSINESS
AVIATION
MARKET
UPDATE
By Global Jet Capital
Flight operations improved on a year-over-year basis and
manufacturers received a high level of orders. Transactions were
down compared to a brisk 2021 but were higher than pre-COVID levels.
Aircraft listings increased, although pricing remained stable as overall
inventory levels were still low. The biggest question going forward is
the health of the global economy, with many economists expecting a
recession in 2023. Due to business aviation’s unique value proposition,
the business jet market has remained resilient but will likely be tested
this year.
• While many economists forecast the global economy to experience
a recession in 2023, Q4 2022 data indicates that the contraction may
be less severe than originally expected
• While flight operations dipped slightly in Q4 2022, they remained
nearly 18 percent above 2019 levels, demonstrating that the
broadening of the business aviation user base has endured.
• OEMs experienced robust demand in 2022, driving up backlogs.
Strong deliveries and normalizing order intake during Q4 resulted in
lower book-to-bill ratios.
• Pre-owned transaction levels were down in 2022 compared to a redhot
2021 but were higher than pre-COVID levels.
• Inventory levels increased along with aircraft listings in 2022 but
remained well below historical levels.
• With demand strong and supply remaining low, business jet bluebook
values increased in Q4, but signs that the market is normalizing
began to emerge.
52 | GLOBAL SKY QUARTERLY — FOURTH QUARTER 2022