What Will the Remainder of 2024 Bring for Business Aircraft Sales?

Aug. 21, 2024

Looking toward the final quarter of what has already been a very interesting year, an Aug. 21 NBAA Thought Leadership webinar examined what we might expect for business aircraft sales and industry growth for the remainder of 2024.

Sponsored by Mesinger Jet Sales, “What Floats the Boats and Keeps Their Sales into the Wind?” examined past trends and current realities. For example, while “things tend to be slow in an election year cycle, with [buyers] sitting on the fence,” moderator Jay Mesinger said 2024 is shaping up to defy conventional wisdom.

Jetcraft CEO Chad Anderson agreed. While sales have declined from the peaks of 2021-2022, “supply [of aircraft] has climbed and that’s exactly what we needed,” he said. “We finally have a balance of supply that our clients can logically select from.”

“We were acutely aware in June that summer was upon us, but it made an abrupt turn in July,” added OGARAJETS President and CEO Johnny Foster. “We’re very bullish as we roll into Q4.”

Lagging factors do remain, however. Panelists cited continued supply chain issues and the lack of available slots at maintenance facilities for pre-buy inspections.

“We’re seeing more and more creative solutions,” said Brian Proctor, president and CEO of Mente Group LLC. “We see it on scheduling, we see it on procurement, we see it on maintenance.” That may include guaranteed spare parts inventories as a stipulation in purchase contracts.

Anderson noted buyers may also look to a non-manufacturer maintenance provider or going outside the country. “Most buyers prefer a U.S. pre-buy,” he said, “but there are quality facilities outside the borders of the Americas. It will cost more, but [the pre-buy] can typically get done much quicker.”

Despite the uncertainties surrounding the presidential election, panelists cited other factors weighing more heavily on purchase decisions. “Interest rates are the biggest change we’ve seen from an inventory perspective,” Proctor said. “There’s a significant delta between where we were four years ago and where we are today.”

“This industry today is significantly more complicated than it was five years ago, and certainly more than 10 years ago,” Foster added, pointing to new FAA and IRS regulations impacting the industry, as well as decreases to bonus depreciation in 2025.

NBAA President and CEO Ed Bolen thanked the panelists for their views on the “exciting” year underway, adding that prospective aircraft buyers can gain additional purchasing guidance and information at the NBAA Business Aviation Convention & Exhibition (NBAA-BACE), coming to Las Vegas, from Oct. 22-24.

“We will celebrate all things business aviation, put buyers and sellers together, show the technologies and meet with all the government officials,” he said. “We’ll inspire people and fire imaginations.”