Sale of Private Business Aircraft Expected to Boom in the Wake of Terror Attacks; Survey by Aircraft Shopper Online Shows Surge in Inquiries to Dealers & Brokers

Business Wire, Oct 3, 2001

Business Editors

CORTE MADERA, Calif.--(BUSINESS WIRE)--Oct. 3, 2001

The number of serious shoppers for private business aircraft has surged since the September 11 terrorist attacks on the World Trade Center and the Pentagon, according to a survey of aircraft dealers and brokers by Aircraft Shopper Online (ASO).

Nearly half of the survey respondents reported a significant increase in serious inquiries about pre-owned business jets, while one-third have seen a substantial jump in interest in turboprops -- smaller planes that are frequently purchased as entry-level business aircraft. In contrast, very few dealers reported rising interest in single- and multi-engine planes, which are typically used by weekend pilots and hobbyists.

"The most logical explanation for the flurry of interest in business aircraft is that companies are considering alternatives to commercial air travel in the wake of the tragedies of September 11," said Tony Friend, President of ASO.

"A business executive who previously could not justify the cost of purchasing an aircraft may now be reconsidering because of the time that's going to be wasted flying under the new security regulations and the perceived risk of flying commercially," Friend said. "That, along with favorable interest rates, may push many businesses toward private planes."

Specifically, the survey showed that:

-- Business jets are generating the greatest interest, with 44 percent of
respondents reporting increases of 10 percent or more in serious inquiries for
this category. These aircraft range in cost from $1 to $40 million.

-- Turboprops are coming on strong as well, with 32 percent of respondents
reporting a significant rise in interest. These planes typically cost less than
$1 million.

-- Single- and multi-engine aircraft are suffering the most, with 64 percent
and 57 percent declines in shopper activity, respectively. These figures
apparently reflect the adverse effect of the economy on personal purchases.

ASO is the leading Internet-based listing service for sales of pre-owned aircraft. The company surveyed virtually all of the professional aircraft dealers and brokers in North America in an attempt to measure the impact of the events of September 11 on general aviation. Nearly 25 percent of the 1,400 dealers and brokers contacted responded to the survey, which was issued the week of September 24.