A shortage of newer-model business jets is driving up prices of second-hand aircraft, a trend that is expected to deliver a windfall for luxury planemakers as new affluent buyers enter the market.
After a turbulent 2020 due to COVID-19, the rush toward private transport is so marked that some buyers are snapping up second-hand planes before fully inspecting the wares as the market shifts toward sellers, lawyers and brokers said.
That is expected to push up demand for new jets from planemakers like General Dynamics Corp‘s Gulfstream, Textron Inc and Bombardier Inc since buyers have fewer pre-owned options, and the price gap between old and new narrows.
“There are virtually no young pre-owned aircraft available – good news for would-be sellers and for (planemakers),” said aviation analyst Rolland Vincent.
He recalled one trucking company’s recent search for a pre-owned Gulfstream jet: “There was one aircraft in the world that fit their requirements.”
Traffic from business jets, which carry roughly a handful to 19 travelers, has rebounded to pre-pandemic levels in the United States, the world’s largest market for private aviation, according to FlightAware data.
“On the pre-owned side, inventory appears to be fairly low, and that’s always a benefit to new aircraft sales,” said Scott Neal, senior vice president worldwide sales, Gulfstream.
“We are seeing strong interest across the board from first-time buyers and high net worth individuals as well as corporate customers with a desire to grow their fleets.”
Textron in April raised its full-year profit forecast, propelled by a rebound in business jet demand.
The trend could encourage some planemakers to increase production rates, although any ramp-up would hinge on supply chain capabilities, Vincent said.
Planemakers do not disclose total number of orders.
Preowned aircraft for sale in May accounted for 6.6% of the worldwide fleet, the lowest level recorded in 25 years by JETNET data, Vincent said. He said 864 pre-owned business jets sold during the first four months of 2021, up 36% from the same period last year.
“There are multiple offers on planes,” said Florida-based aviation attorney Stewart Lapayowker, founder of Lapayowker Jet Counsel PA.
Amanda Applegate, a partner at Aerlex Law Group, said she handled more deals for new jets than usual in May, as buyers fail to secure popular pre-owned planes like the G650, raising prices.
Applegate said it’s a case of pent-up demand as some wealthy travelers previously avoided private jets due to concerns like “flight shaming” over the environment. Corporate planes burn more fuel per passenger than commercial.
But since COVID-19, buyers have been shifting to private aviation to avoid airport crowds and coronavirus variants.
Applegate said some deals are so competitive she’s seen buyers give up pre-purchase inspections to win them.
Don Dwyer, managing partner at Guardian Jet, which does aircraft brokerage, appraisals, and consulting, recalled one case where a client didn’t undertake a pre-purchase inspection, which can take more than a month to complete.
It was a particular case since the plane was highly coveted, in good shape based on a visual inspection, and the seller was reputable, Dwyer said.
“I don’t recommend it, but in certain situations it can work.”
(Reporting by Allison Lampert in Montreal; Editing by Denny Thomas and Steve Orlofsky)
Union ratifies deal with Bombardier at Downsview; talks with De Havilland continue – CP24 Toronto's Breaking News
TORONTO – Unifor says members of two of its locals have ratified an agreement with Bombardier Aviation at its Downsview plant in north Toronto.
Unifor National President Jerry Dias says in a statement that the three-year collective agreement approved by members of Local 112 and 673 makes “significant progress” on key issues such as pensions, as well as on job protection against outsourcing and the use of contractors.
Workers will see raises of 0.5 per cent in Year 1, 0.75 per cent in Year 2 and one per cent in Year 3.
The workers launched a strike late last month against the business jet manufacturer and De Havilland, which it says had made Dash 8 turboprops at the facility.
Unifor says the ratified deal covers approximately 1,500 Bombardier Aviation workers, and runs from June 23, 2021 to June 23, 2024.
But it says 700 De Havilland workers remain on strike as negotiations between it and the company continue, with a dedicated picket line in operation at the De Havilland area of the facility.
“As the industry recovers from this once-in-a-century pandemic and Bombardier prepares to move production to a new facility at Pearson Airport, these collective agreements will ensure our highly skilled members will maintain wages, pension, benefits and other working conditions that are among the best in the industry,” Dias said in the statement.
The union has said the future of the Dash 8 program is the focus of talks with De Havilland.
De Havilland announced earlier this year that it would no longer produce new Dash 8s at the facility beyond currently confirmed orders. De Havilland indicated two years ago that work will end at Downsview once lease agreements for the land expire.
This report by The Canadian Press was first published July 31, 2021.
Ontario reports 258 new COVID-19 cases on Saturday – CBC.ca
Ontario reported another 258 cases of COVID-19 on Saturday. The latest case count includes 53 cases in Toronto, 33 in York Region, 28 in the Region of Waterloo, 27 in Hamilton and 26 in Peel Region.
Here are some other key pandemic indicators and figures from the Ministry of Health’s daily provincial update:
Seven-day average of daily cases: 183
Tests completed: 19,112
Provincewide test positivity rate: 1.2 per cent
Active cases: 1,606
Patients in ICU with COVID-related illnesses: 112; 83 needed a ventilator to breathe
Deaths: Six, pushing the official toll to 9,345
Vaccinations: 81,590 doses administered for a total of 19,459,198 as of 8 p.m. on Friday.
One New Case of COVID-19, Two Recoveries – Government of Nova Scotia
Today, July 30, Nova Scotia is reporting one new case of COVID-19 and two recoveries.
The case is in Central Zone and is under investigation.
There have been 4,200 cases from March 15 to July 27, 2021. Of those:
- 28 (0.7 per cent) were fully vaccinated
- 235 (5.6 per cent) were partially vaccinated
- 3,937 (93.7 per cent) were unvaccinated
There were 254 people hospitalized. Of those:
- 2 (0.8 per cent) were fully vaccinated
- 28 (11 per cent) were partially vaccinated
- 224 (88.2 per cent) were unvaccinated
Twenty-seven people died. Of those:
- 1 (3.7 per cent) was fully vaccinated
- 3 (11.1 per cent) were partially vaccinated
- 23 (85.2 per cent) were unvaccinated
As of today, Nova Scotia has nine active cases of COVID-19. Of those, one person is in a hospital COVID-19 unit. The person is in ICU.
There were 3,364 tests administered between July 23 and 30 at the rapid-testing pop-up sites in Halifax, Dartmouth, Cole Harbour, Bedford, Hubbards, Spryfield and Brooklyn, Hants Co.
On July 29, Nova Scotia Health Authority’s labs completed 2,964 tests.
As of July 29, 1,345,401 doses of COVID-19 vaccine have been administered. Of those, 606,975 Nova Scotians have received their second dose.
Since April 1, there have been 4,145 positive COVID-19 cases and 27 deaths. Cases range in age from under 10 to over 90. There are 4,109 resolved cases. Cumulative cases may change as data is updated in Panorama.
Nova Scotians with or without symptoms can book a test at https://covid-self-assessment.novascotia.ca/en for primary assessment centres across the province. Those with no symptoms are encouraged to use one of the primary assessment centres with drop-in testing, pop-up sites, or public health mobile units if they want to be tested.
More information on testing can be found at https://www.nshealth.ca/coronavirustesting
Anyone with COVID-19 symptoms is advised to self-isolate and book a COVID-19 test.
Anyone advised by public health that they were a close contact needs to complete a full 14-day quarantine, regardless of test results, unless they are fully vaccinated. If they are fully vaccinated at least 14 days before the exposure date, they do not need to self-isolate as long as they are not experiencing any COVID-19 symptoms. They should still get tested and should monitor for symptoms up to 14 days after the exposure date. If symptoms develop, they should get tested and self-isolate until they receive a negative test result.
Symptoms and self-assessment:
Nova Scotians should visit https://covid-self-assessment.novascotia.ca/ to do a self-assessment if in the past 48 hours they have had or are currently experiencing mild symptoms, including:
- fever (i.e. chills/sweats) or cough (new or worsening)
- sore throat
- runny nose/nasal congestion
- shortness of breath/difficulty breathing
People should call 811 if they cannot access the online self-assessment or wish to speak with a nurse about their symptoms.
Anyone with symptoms should immediately self-isolate and book a test.
- a state of emergency was declared under the Emergency Management Act on March 22, 2020, and extended to Aug. 8, 2021
More information on COVID-19 case data, testing and vaccines is available at: https://novascotia.ca/coronavirus/data/
Nova Scotians can find accurate, up-to-date information, handwashing posters and fact sheets at: https://novascotia.ca/coronavirus
Nova’s Scotia’s five-phase reopening plan, announced May 28, 2021: https://novascotia.ca/reopening-plan/
Businesses and other organizations can find information to help them safely reopen and operate at: https://novascotia.ca/reopening-nova-scotia
A list of primary assessment locations, including locations with drop-in testing, is available at: https://www.nshealth.ca/coronavirustesting#assessment-centre-locations
More information about public health text notifications of positive COVID-19 cases and close contacts is available here: https://www.nshealth.ca/news/public-health-begins-contacting-positive-covid-19-cases-close-contacts-text-message
More information on what is considered essential travel is available here: https://novascotia.ca/coronavirus/travel/#from-outside-atlantic-canada
Government of Canada: https://canada.ca/coronavirus or 1-833-784-4397 (toll-free)
The Mental Health Provincial Crisis Line is available 24/7 to anyone experiencing a mental health or addictions crisis, or someone concerned about them, by calling 1-888-429-8167 (toll-free)
Anyone needing help with a non-crisis mental health or addiction concern can call Community Mental Health and Addictions at 1-855-922-1122 (toll-free) weekdays 8:30 a.m. to 4:30 p.m.
Kids Help Phone is available 24/7 by calling 1-800-668-6868 (toll-free)
For help or information about domestic violence 24/7, call 1-855-225-0220 (toll-free)
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