Steve VarsanoFounder at The Jet Business

How covid impacted private aviation! Part-3

Name: How covid impacted private aviation! Part-3
Uploaded: 2023-09-03T22:36:16+00:00
Duration: 27 s
Channel: Steve Varsano
Description: Steve Varsano breaks down how the private aviation boom left operators exposed. Buyers overpaid $20-40 million for older planes, relying on charter…

3 Sept 2023 · 0 min

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Steve Varsano breaks down how the private aviation boom left operators exposed. Buyers overpaid $20-40 million for older planes, relying on charter income to cover payments. Now demand is slowing and values rose 10-20%, but the higher debt load is becoming a liability.

A little bit. Those people who overpaid for those older airplanes are going to get stuck. But the charter companies were so busy, they said, give me this airplane, I'll keep it so busy and it'll pay for itself. That was true at the point. But now when the demand starts coming down a little bit, you don't have that activity and then you can't start paying those bills and you have to start reaching into your pocket to pay the bills. The airplanes that were $20, $30, $40 million, they went up 10%, 15%, 20%. It went up less percentage, but a lot more in absolute dollars.