Recent statistics indicate that the number of used private jets in the resale market have declined for the first time in several months.

The number if used private jets had increased for 18 consecutive months before decreasing by 2 percent last June, according to report from UBS Securities analyst David Strauss.

However, Strauss said that the used jet inventory still remains 48 percent higher compared to last year. 

“Overall, we think the current business jet market is still characterized by significant oversupply, weak pricing and tight financing,” maintained Strauss.

The business jet industry has been one of the biggest victims of the recession. Strauss says that there may still be more production cuts and extended downturns.

During the first quarter, the number of business jets delivered dropped by a significant 36 percent. In response to this, Cessna Aircraft, Hawker Beechcraft, and Bombardier Learjet have laid off or announced cuts of about 12,000 employees in Wichita.

Brian Foley, a president of a business aviation consultancy firm, says that the next couple of years will be “trough years.” He says that deliveries will hit rock bottom in 2012 and slow recovery will begin in 2013.  

Average asking prices for newer models have dropped by 30 to 40 percent from their peak levels and pricing is down 3 to 4 percent in the last month, cited Foley.

Source: The Wichita Eagle