ExecuJet Aviation Group is experiencing so much demand for pre-owned aircraft that it has created a dedicated division with sales representatives in Europe, South Africa, the Middle East and very shortly, the USA. Under the continuing worldwide team leadership of Andrew Hoy, Nicholas McHaffey takes the management responsibility as newly appointed Head of Global Pre-Owned Sales, having served for three years as Sales Director for ExecuJet Middle East.
 
Pre-owned demand is being led primarily by the Middle East which is growing by 20% each year and also in India, and China, where ExecuJet recently opened offices in Mumbai and Beijing.
 
Last year, the Middle East market accounted for $300 million of pre-owned aircraft sales, comprising over a dozen transactions and representing nearly 50% of ExecuJet’s total transactions during 2007. “On the back of these transactions ExecuJet Middle East has gained seven new aircraft under management, which have since joined the fleet,” says Nicholas McHaffey.  Currently, ExecuJet Middle East is receiving one new enquiry every week with demand largely focused on wide-bodied cabin aircraft.
 
Rest of World market expands as US dips

The US business aircraft market is pretty much saturated now, ExecuJet asserts. “Five years ago this would have a massive effect on aircraft values and perceptions worldwide, but that was when 70% of all business aircraft transactions were US based. Today we are competing in a global market – and we have seen the US market dip to just 40-45% of all transactions,” said ExecuJet’s Executive Director, Group Sales, Andrew Hoy.
 
“The new emerging regions such as the Middle East, India and the Far East are driving the pre- owned market,” adds McHaffey. “Consider the massive lead times on new build aircraft (Year 2011 for a new Learjet; first quarter 2012 for a new Challenger 605) and it makes sense to look to the pre-owned market.” 
 
Furthermore, demand has put a premium of up to 15% on late model aircraft due to the lack of supply and customers not willing to sell.

Recent ExecuJet transactions have seen a Year 2006 model Challenger 604 sell for $2 million more than its original price and last month ExecuJet placed a year 2005 Challenger 300 for $2 million more than its original price tag due to the demand for the quality aircraft provided within the ExecuJet inventory. Even now, customers are placing multiple orders, to meet their future needs, with some prospects in the ME and Asia booking aircraft as late as 2013, McHaffey reports.