Mx Slot Availability Impeding Late-year Bizcraft Deals

 - November 16, 2022, 10:46 AM
The lack of availability of slots at MROs for pre-purchase inspections is hampering late-year business aircraft deals. U.S. buyers are rushing to take advantage of 100 percent bonus depreciation before it drops to 80 percent in the New Year. (Photo: Banyan Air Services)

Finding an open shop slot for a pre-purchase inspection is the biggest roadblock to closing preowned business aircraft deals by year-end, according to Hagerty Jet Group. The preowned Gulfstream specialist said many potential buyers in the U.S. are rushing to take advantage of 100 percent bonus depreciation before it drops to 80 percent in 2023.

Inspection facilities in the U.S. remain busy, with the average lead time to get into an OEM facility being six to eight weeks, the business jet broker said. However, it noted that European MROs might have availability because they are not performing maintenance on sanctioned Russian aircraft.

Meanwhile, Hagerty Jet said recent interest rate hikes may push more U.S. aircraft buyers on the fence as the cost of financing escalates. It added that the strong U.S. dollar will likely deter foreign buyers from entering the market and could create more foreign supply for those willing to sell.

Regarding foreign supply, the company said the first Russian-owned business aircraft are coming for sale, “but buyers are hesitant to be the first ones to learn how to navigate these difficult transactions where the aircraft are often unairworthy and not supported by suppliers.”