Posts Tagged ‘recession’

Piston values have stopped dropping

Tuesday, September 17th, 2013

A few months ago I reported in AOPA Pilot that all aircraft were dropping in value; if it flew, it was down. Recently I checked back to see if things are looking better. Rarely would we celebrate being drug along the bottom of the used aircraft value “ocean, ” but that is the case with piston-engine singles and twins. Vref, the airplane value reporting firm, says prices that dropped into the toilet, let’s make that the vast clean ocean, have stopped dropping. They bounce up and down, but there appear to be no more cliffs ahead. They should stay where they are for another year, says Vref’s Fletcher Aldridge.

Aldredge looked at 25 jets and found all but seven of them are in a buyers’ market. If 10 percent of the fleet of, say, Lear 60XR aircraft are for sale, then it is a buyer’s market. If the percentage is less and few are available, it is a seller’s market. The Lear 60XR is in a buyer’s market because 22 percent of the Lear 60XR fleet is for sale, and the used inventory is growing. The Global Express, Falcon 900, Citation II, Beechjet 400A, CitationJet 525, and Gulfstream IV, IVSP, and V, are all in a buyer’s market. The Gulfstream 450 and 550 are in a seller’s market. You can see the whole list for yourself right here.

Exclusive from Las Vegas; Top stock analyst says the economy is doing better than you think

Wednesday, October 12th, 2011

If you have watched our coverage of the National Business Aviation Association from Las Vegas, you already know we have one item you won’t see anywhere else. Morgan Stanley aerospace analyst and Managing Director Heidi Wood was chosen top stock picker on Wall Street three years in a row (2004-2007), and Tom Horne interviewed her in this video about the future of Cessna, Hawker Beechcraft, and the miserable recession, which she says is truly coming to an end. For a lift and a little good news, click here to see a top stock picker at work.

Diamond withdraws from major consumer shows

Saturday, July 9th, 2011

Diamond Aircraft will not exhibit at EAA Airventure, the National Business Aviation Association convention, and AOPA Summit as a cost-savings measure. The company will continue to exhibit at law-enforcement and government security shows to demonstrate its special mission aircraft. The decision was a cost-saving move to focus on the D-Jet program and continue support of the piston-engine fleet, said Diamond President Peter Maurer. A recent loan from an unnamed source was to support development of the D-Jet. Maurer said the decisions were necessary because of the “…continued weakness of the economy,” and “…slow industry wide retail sales.” The company’s September open house at the factory in London, Ontario, will continue as planned.

Mystery buyers plucking recession-stessed firms

Friday, October 23rd, 2009

Seven people who represented high rollers or were themselves high rollers patrolled the aisles of the National Business Aviation Association convention in Orlando this week looking for companies to buy. I met one of them at breakfast. His particular area was aircraft manufacturers and he said the others represent avionics buyers and other specialties. He wore a badge naming him an official of a firm that does not employ him. I checked later and found he was a guest of that firm’s CEO. I didn’t determine whether he was working in conjunction with the other six buyers or just working for himself.

I mentioned this to a woman staffing an exhibit for a small firm that builds infrared cockpit displays for aircraft. Five months ago during an aerospace show a seemingly hot prospect made an appointment with her for a briefing on the firm’s products. After she finished her presentation he said, “Now I can make you an offer for your company.” She explained she was an employee, and selling the firm out from under her boss did not sound like a good idea. She later called the owner and said, “I think I just sold your company.” The offer was rejected.