Welcome to the Winter 2017 jetAVIVA Market Report! With 2016 solidly in the rear view mirror, time to report on the goings on of the market.
2016 presented itself to be quite an interesting year. With the election of President Trump, the world has quickly become a different place than it was a year ago this time. Independent of one’s political leanings, it is clear that the US market responded favorably with the DJIA currently at a record high of 20,000 points. Anecdotally, inbound activity at our firm has been at record levels – people are comfortable investing in this new time. It’s rare for me to say this, but I’m optimistic about the aviation market (barring any black swan events). By the end of January our firm had 20 aircraft under contract across the entire spectrum of our portfolio... this is particularly exciting as January/February are typically the slowest months of the year for our business after the mad-dash in December as buyers try to get their year end purchases completed for tax purposes.
As a point of reference, in 2016, jetAVIVA bought and/or sold over 90 aircraft: everything from high–performance piston aircraft up to large cabin executive jets. It was the busiest year in total transaction volume in our firm’s history. I’m proud of the hard work of our team that has earned jetAVIVA the #1 ranking of buyers/sellers of light jets as reported by industry research firm JETNET, and their Statistical Analysis Reports (STAR), and #3 across all markets – cool.
Regardless of any specific policies of President Trump, his election has generally been seen as a bright spot as far as the business and general aviation market goes. President Trump has been a long-time consumer and proponent of business aviation. Case in point: Trump Force One... hence, it is reassuring to know that the leader of our Executive branch is a proponent–nay, a cheerleader–for private aviation.
A few notable industry highlights to hit as we review Q4 2016: Tamarack, the manufacturer of the next generation ATLAS winglet system, achieved FAA certification on their winglet system for the Citation CJ/CJ1/CJ1+/M2 series, giving the series increased range, speed, and efficiency. This is a particularly exciting development as it’s just a matter of time that this technology spreads to other platforms.
Speaking of major industry achievements, many congrats to the fine folks at Cirrus Design for certifying and delivering their revolutionary Cirrus Vision Jet to their first customers at the end of 2016. By the end of 2016, Cirrus had delivered four of the single engine jets, barely putting a dent in their 500+ order book. The arrival of the Vision Jet is probably the most exciting thing I’ve seen in this segment in a long, long time. Why? Once someone crosses the jet threshold, it doesn’t take long for them to move up to the next platform, hence, I expect to see many larger aircraft sold to Vision Jet owners. Embraer, Pilatus (ala PC-24), and Textron Aviation should be jumping for joy with the arrival of the Vision Jet as it is these owners that will likely be their future customers.
If you're a buyer, seller, industry stakeholder, or enthusiast, we hope you will enjoy the contents of this quarterly market report and that you find it helpful in better understanding the dynamics of the market.
And remember – Life is Short. Fly a Jet.