IADA reports increase in used business jet sales
September 1, 2020 By Wings Staff
The International Aircraft Dealers Association in late August reported the pace of used aircraft sales picked up sharply in June and July after much weaker results in the months of April and May brought on by the economic and societal impact of the COVID-19 pandemic.
Dealers accredited by the International Aircraft Dealers Association (IADA) reported 103 closed sales transactions in July, more than three per day for every day of the month. In June, IADA members also had a good month, making 74 deals, up significantly – more than 57 per cent – from 47 closed transactions in April, followed by 53 in May.
Comparing these two dual-month periods, the 177 deals in June and July represent a 77 per cent increase over the 100 total transactions in April and May. In addition, IADA reports fewer deals member deal fell apart in June and July – 27 versus 38 in April and May.
IADA’s executive director Wayne Starling noted the association’s members also experienced a reduced percentage of deals where lowered prices were integral to completing the deal. In April and May, IADA dealers reported 82 of the transactions included a lowered price to some extent. Overall, IADA accredited dealers registered 19 new commitments to purchase aircraft in June and July, and 52 acquisition agreements in the same period. The group also was exclusively retained to sell 217 aircraft in the past four months. The month of August began with 87 additional aircraft under sales contracts.
Just three per cent of all aircraft dealers are IADA Members, but the association notes these dealers, which must be re-accredited every three years, are responsible for more than 60 per cent of all pre-owned aircraft sales globally.