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Gama urges bizjet owners looking to sell in current buyers' market to consider refurbishment

New research from Gama Aviation, the global aviation services company, reveals there are around 526 private aircraft for sale in Europe, which equates to approximately 12.7% of the continent’s fleet.

Anything over 10% tends to make it a buyers’ market where those selling have a lot of competition to secure a sale at a satisfactory price.

Gama Aviation believes it makes economic sense for some of those looking to sell their private aircraft to have them refurbished, increasing their chances of securing a buyer and achieving a higher sale price. It estimates that the total value of private jets for sale in Europe is as much as $2.9bn (€2.5bn / £2b), or $5.5m (€4.9m / £3.8m) each.

Gama Aviation has three principle centres of excellence in Europe, where they can upgrade aircraft for a variety of private, commercial and Government clients. These centres are, Farnborough - Beechcraft King Air (civil, military and aeromedical); Fairoaks - Rotary (civil & military), Cirrus and Twin Commander specialists; Oxford - Business jet service centre (Hawker, Bombardier Challenger, Global and Embraer 135/145 specialists).

Duncan Daines, Group Chief Marketing Officer, Gama Aviation said: “It’s a competitive market for pre-owned aircraft at the moment with residual values at low levels. Owners seeking to exit a position on an aircraft may choose one of three avenues: keep the aircraft and upgrade key features such as in-cabin connectivity with a view to selling once values improve; sell the aircraft with value accretive modifications to increase its market standing and potential list price; or keep the aircraft as is and hope a buyer is found. We think the third choice is poor given the current market as even small changes can differentiate an aircraft positively.”

Gama Aviation’s paint shop in Oxford provides one such mechanism to implement aesthetic changes. Daines continues: “Refreshing a livery, adding new soft finishes and small cosmetic touches can make the difference in converting an enquiry into a sale. It’s not different to selling premium property - presentation is everything.

Business aircraft for sale as a proportion of the total fleet:

Country Number of private aircraft for sale Percentage of fleet for sale
Germany 72 9.5%
United Kingdom 76 13.5%
Switzerland 50 17.2%
France 46 9.9%
Italy 32 16.8%
Austria 29 13.7%
Spain 23 13.8%
Belgium 21 18.8%
Russian Federation 21 11.2%
Portugal 11 8.2%
Rest of Europe 145 13.7%
All Europe 526 12.7%

Of the 526 private aircraft for sale in Europe, 76 of them are in the United Kingdom, and this is followed by 72 in Germany, 50 in Switzerland and 46 in France. In terms of which of the major European countries have the highest percentage of their fleets of private aircraft for sale, Belgium is top with 18.8%, followed by Switzerland with 17.2% and Italy with 16.8%.

Gama Aviation has operations in 45 different locations in 17 countries across five continents, making it one of the world’s leading aviation services companies. Its services include: line and base maintenance; FBO services; engineering design; aircraft management; charter operations; training; and aviation and ground management systems.

BlueSky Business Aviation News | 26th May 2016 | Issue #369