Asian Sky Quarterly 2023 Q4

GLOBAL
BUSINESS
AVIATION
MARKET
UPDATE
By Global Jet Capital
Business jet flight operations were down year-over-year, inventory
levels climbed from an early 2022 low point, supply chain and labor
constraints held back new deliveries, and pre-owned transactions
slowed from recent high levels. Furthermore, while the economy
proved resilient in 2023, many consumers, businesses, and economists
remained uncertain about the future. Still, the business jet market had
a positive finish to 2023: flight operations were strong, backlogs and
lead-times at major OEMs were up, and inventory remained low, leaving
the industry well positioned to weather any future economic downturn.
• The global economy remained resilient in 2023 despite headwinds,
but uncertainty remains moving into 2024.
• Flight operations declined 1 percent year-over-year in Q4 2023 but
were 17 percent above Q4 2019 levels, demonstrating systemic
expansion in the user base for business aviation.
• OEM book-to-bill ratios were around 1-to-1 in Q4 with backlogs
remaining at high levels, placing OEMs in a position to weather an
economic downturn.
• Transactions declined in 2023 due to slower-than-expected new
deliveries (attributable to ongoing supply chain and labor issues)
and price driven inertia between buyers and sellers in the pre-owned
market.
• As more sellers publicly listed their aircraft, business jet inventory
levels increased in 2023, although levels for the overall fleet remained
below historical averages.
• Most aircraft models reverted to historical depreciation profiles in Q4
2023, albeit from a higher starting point following a firming in values
over 2021-22.
FOURTH QUARTER 2023 — ASIAN SKY QUARTERLY | 36