GVFlyer
Well-known member
- Joined
- Feb 22, 2002
- Posts
- 1,461
I just read UBS's October Business Jet Update and extracted what I thought might be of interest here.
UBS Investment Research
October Business Jet Update
�� NBAA this week; GD preferred bizjet play
GD is our top bizjet play given conservative expectations,
currently trading at 16x our 2007 EPS estimate. We also believe BEAV can benefit significantly from the business jet upcycle.
[FONT="]Used Inventory Levels[/FONT]
There were 1,749 used aircraft available for sale at the end of September, 14 less than at the end of August and 15% lower than the November 2002 peak, although still 9% higher than the December trough. As a percentage of the inservice fleet, the number of used business jets available for sale remains at 12%, slightly below its average since 1990 of 13% and down from nearly 16% at the peak. By manufacturer, Bombardier and Raytheon have the highest percentage of their fleet available for sale at 13%, followed by Cessna at 11%, and Dassault and Gulfstream at 10%.
�� Fractional continues to grow at modest rate
Rolling three-month new fractional share sales declined from the prior year, but are up 6% YTD, while fractional providers continued to take delivery of new aircraft to refresh their fleets.
GV
UBS Investment Research
October Business Jet Update
�� NBAA this week; GD preferred bizjet play
GD is our top bizjet play given conservative expectations,
currently trading at 16x our 2007 EPS estimate. We also believe BEAV can benefit significantly from the business jet upcycle.
[FONT="]Used Inventory Levels[/FONT]
There were 1,749 used aircraft available for sale at the end of September, 14 less than at the end of August and 15% lower than the November 2002 peak, although still 9% higher than the December trough. As a percentage of the inservice fleet, the number of used business jets available for sale remains at 12%, slightly below its average since 1990 of 13% and down from nearly 16% at the peak. By manufacturer, Bombardier and Raytheon have the highest percentage of their fleet available for sale at 13%, followed by Cessna at 11%, and Dassault and Gulfstream at 10%.
�� Fractional continues to grow at modest rate
Rolling three-month new fractional share sales declined from the prior year, but are up 6% YTD, while fractional providers continued to take delivery of new aircraft to refresh their fleets.
GV
