Per my previous sign-off….NBAA, October 2011, Las Vegas was apparently the appropriate venue for the latest announcements (orders ?) from the current crop of China bizav neophytes
…to wit “I’ll see your fifteen Gulfstream 550′s and raise it seven XRS’s”…..okay, I’m going all-in with my five Falcon 7X’s“….(yawn).
In our opinion this was nothing more than ‘headline-grabbing’ and we predict a ‘slight tempering‘ of these puzzling announcements in the near future. It wasn’t too long ago that a certain China-based financing entity was imploring us to ‘help sell‘ two ultra-long-range jets that were somehow stuck in their order inventory….ultimately these jets disappeared into the hotpot that is currently business aviation in China.
The inference here is that this particular financing entity was not purchasing these jets on behalf of qualified clients in the first place….au contraire, this ‘entity’ was speculating, marking up the price and then looking for buyers….at some pretty steep finance rates…nothing has changed.
Of course, there is also the other end of the food chain at the smorgasbord…..brokers in the US and elsewhere are now conditioned to listening for the clatter of coins (Vegas style) when the ‘phone rings with an ’86′ caller ID. The internet is playing havoc with the past mystique and cadence of both the new and pre-owned markets and certain China-based brokers are busy mimicking some of their ‘foreigner’ counterparts…..right up to and including the self-dealing and corruption that are so often evident when lots of money collides with an unregulated and lucrative business opportunity.
More on China after the year of the Black Water Dragon gets under way.