No Silver Bullet, Industry Forum Participants Say

More than 200 of the most knowledgeable brokers, dealers and finance officers in the resale market gathered to discuss the financial markets’ impact on the global economy, and the global economy’s effect on aircraft sales.

The remarkable attendance at the forum indicates the concern professionals have about the business aircraft resale market. NARA is  pleased to have provided a timely venue for a frank discussion of what lies ahead, and the roles we all play in fostering a productive market environment.

Bankers Weigh In

The meeting opened with a panel of bankers, who began the discussion with an overview of the current financial disruption and market degradation due to liquidity constraints. The critical message was that banks are still lending, but the rules have changed. Most lenders now require larger down payments and shorter amortization schedules in today’s financial environment.

Brokers and dealers in the audience heard the bankers’ message that both parties play an important role in reaching win-win outcomes. That is, bankers are able to make more favorable decisions on lending when the brokers and dealers exercise greater due diligence in client selection.

Broker/Dealer Perspective

From the brokers’ and dealers’ perspective, the market has not reached equilibrium yet. Buyers are dictating aircraft values that have not yet stabilized. There was consensus among attendees that brokers and dealers could instill consumer confidence by better educating clients and managing expectations more realistically.

Mutual Resolve

Although bankers, brokers and dealers know that there is no “silver bullet” for what ails aircraft sales, the take-away from the meeting was a collective resolve to proactively work together to close transactions.

General aviation is a resilient industry. We will face these uncharted waters with the same hard work, innovative thinking, leadership and good business sense that have sustained us in the past. Level heads will prevail.