BOCA RATON, Fla., July 25, 2014 /PRNewswire-iReach/ -- In July of 2013, Airstream Jets' CEO Peter Maestrales published a lengthy market forecast on his company's blog titled "Huge Turnaround Brewing in Pre-Owned Business Jet Market". The detailed report outlined the various factors that helped to create a bubble in the business jet sales market, why the market continued to suffer through the recovery, and why conditions were ripe for a sharp reversal. At the time Mr. Maestrales' analysis could easily be classified as contrarian. After all, the general consensus among leading publications, industry experts, and top aircraft consultants from respected companies such as Forbes, JetNet, Corporate Jet Investor, and Aviation Week was that further declines in sale prices were likely or for the market to remain flat at best.
Now just one year after releasing the report, Business Aviation headlines are flooded with optimism and reports that the business jet sales industry is experiencing a strong recovery driven primarily by tremendous international demand and aircraft purchase orders from key industry players such as VistaJet and NetJets. These new developments were predicted with amazing accuracy by Maestrales, a rather young CEO at just 35 years of age. He credits his unique perspective along with common sense as the primary reasons for such a perfectly timed prediction. "I basically grew up at the local airports here in South Florida because my Father owned and operated business jets for his charter company, so I have witnessed first-hand how the ownership dynamic has evolved over time and I'm able to identify the specific reasons behind the evolution." He also stated that in addition to his unique perspective of the industry, the market turnaround in used private jets specifically should have been "obvious". He said "when a perfectly good airplane that is flying regularly can be purchased at a price equal to its residual (salvage) value, the buyer is essentially getting that asset for $0 because any risk of depreciation no longer exists. We are obviously at the bottom of a market when the product is basically being given away for free, so there was really nowhere else to go but up."
Since Maestrales' standout prediction just a year ago, others executives in the industry are beginning to show optimism and the numbers validate the positive trend. According to JETNET LLC, the leading provider of corporate aviation information, business jets are showing a good start in the first quarter of 2014, with a 3.1% increase in pre-owned sale transactions, and are taking less time to sell (73 days less) than last year. Even Textron chairman and CEO Scott Donnelly, an executive who Maestrales refers to numerous times in his 2013 analysis, has characterized the business jet market as "stable".
When asked about the market's future Maestrales said "Aviation Industry players are really waking up to the opportunities that are a result of discounted aircraft, especially the earlier models. A savvy owner or a good Aircraft Management company will make these aircraft very affordable to own as well." He also said "the business jet manufacturers will naturally push back by trying to make the earlier models less attractive to consumers, but the tactics they've used for years have run their course and no longer move markets. Ultimately the OEM's (manufacturers) will need to innovate in order to sell more factory new jets, because at the end of the day there just isn't enough difference between the business jet of today versus 30 years ago to justify the difference in price." The young CEO continued on to say that "when consumers outside the Aviation Industry begin to realize that they can own their own private jet for well under a million dollars and not have to travel on Commercial Airline service any longer, I expect we will once again see incredible growth in Business Aviation."
According to his company's website, Peter Maestrales is the CEO of Airstream Jets Inc (ASJ), an On-Demand Private Jet Charter Brokerage & Aircraft Management founded in 2007 that now has offices in the United States, Canada, and Australia. With worldwide aircraft resourcing power ASJ is fast becoming a global leader in business aircraft charters, management, acquisitions, and leasing.
Media Contact: Airstream Jets Inc., Airstream Jets Inc., 1-561-826-7056, [email protected]
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SOURCE Airstream Jets Inc.
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