IADA: Used BizJet Market Steadying as 2023 Approaches Upbeat Dealers Finish 2022 Strong
A very active December for business aircraft resale dealers is capping a powerful year for members of the International Aircraft Dealers Association (IADA).
Association members bought and sold more than 1,200 business aircraft worth $8 billion in the first 11 months of the year, according to statistics from IADA. And the December business pace has intensified further with more inventory to choose from and the pending expiration of 100 percent bonus depreciation in the United States, the most active market in the world.
While IADA’s Fourth Quarter Market Report won’t be released until January, an early projection indicates that once the year ends, the organization’s resale experts could conduct over 1,320 deals worth more than $8.8 billion dollars.
The stunningly robust year will surpass a surprisingly strong 2021 which saw used business aircraft sales rebound mightily while available aircraft dropped precipitously from March of 2020, when the pandemic induced a brief market collapse. IADA members are seeing signs that 2023 could be normalizing, depending on many factors, including the world’s economies and regional stability.
Where is the Market Headed in 2023?
“The signals that we’re seeing from the broker-dealers in our group and our service providers are that the markets are beginning to normalize, and buyers are starting to become more rational. The frenzy of the last 12-24 months has calmed down quite a bit and we see this as healthy for our industry,” said Zipporah Marmor, IADA Chair and Vice President, Aircraft Transactions at Montreal-based ACASS.
“Aircraft are not appreciating any more at an unsustainable rate as they were for many quarters, which was creating some wonderful times and also a lot of challenges for different types of buyers and sellers. We do think the first half of 2023 will be strong as we’re seeing some buyers waiting to see what happens after 100 percent U.S. bonus depreciation is no longer on the table, and the rush to close at the yearend is over. And, of course, we are seeing increased inventory,” she added.
About the International Aircraft Dealers Association
IADA is a professional trade association formed more than 30 years ago, promoting the growth and public understanding of the aircraft resale industry. IADA’s dealers consist of the top 12 percent of the world’s experts who handle 46 percent of used business aircraft sales. IADA accredited dealers buy and sell more aircraft by dollar volume than the rest of the world’s dealers combined, annually averaging over 1,100 transactions.
Ninety-nine percent of IADA dealers do business in North America, 56 percent of dealers operate in Europe, 44 percent are active in Latin America, 42 percent do business in Asia and the Pacific region and 39 percent work in the Middle East and Africa.
To earn accreditation, IADA dealers must meet tough accreditation standards, receive sponsorship from current IADA-accredited aircraft dealers and undergo a formal review process. IADA-accredited aircraft dealers agree to adhere toa strict code of ethics that ensures fully transparent transactions between IADA dealers and aircraft buyers. IADA also represents a variety of IADA-verified product and aviation services that operate with the highest professional standards in the industry. For more info go to https://www.iada.aero.