With the warm rays of the summer sun approaching, the current economic condition of values for pre-owned aircraft is anything but sunny. The aircraft market has suffered its greatest loss in value since the corporate jet became a part of American enterprise with its introduction in the 1960s. As with any commodity traded in a free market, one that is not restricted or regulated by government controls on pricing, the core element of value is in human perception. For aircraft values, perception of worth is always on the leading edge of value.

Looking at the few jet sales that occurred in the final three months of 2008, it is interesting to attempt to identify the types of transactions. Are the sale prices considered fair market values, or are they more along the lines of distressed liquidation values? It depends on the side of the bargaining table. For the seller, chances are the distress in the negotiated sale price has to do with some urgency to liquidate the asset. On the other hand, the buyer who is the end user will argue the sale price is fair market value because he would not be willing to pay more for the aircraft. With too many buyers and sellers still riding the fence, it is hard to know what to call the sale. One thing is certain: If the present economy is our OK Corral, it is getting close to high noon. With the showdown at hand, one side or the other will be the first to break leather. After the smoke clears, everyone will know who the winner is. Time will tell.

The end of the third quarter of 2008 brought havoc and chaos to our national and global economies. Consider the devastation of a violent act of Mother Nature. Everything in the radius of destruction gets annihilated, without concern for good or bad, passive or active, aware or unaware. Corporate aircraft sales could not dodge the violence of the economic meltdown. In the wake of economic failure, the aircraft market is searching for stability.

Seems like everywhere one turns these days, it is easy to cue in on the worst-case scenario revolving around the depressed U.S. real estate market and the subprime mortgage scandal. Still, by official definition, the United States does not fit the mold that would indicate an economic recession has occurred. As Johnnie Cochran, the well-known defense lawyer once said in a high-profile trial, “If the glove doesn’t fit, you must acquit.” His statement would fit well with those who want to doom our economy to a recession.

As the story goes, one day Chicken Little was walking through the woods when an acorn fell on his head. Accordingly, he assumed the sky was falling. Thus, Chicken Little initiated a media blitz to warn the government (in this case the king) of the impending doom. There are some good endings and not-so-good endings to this fairy tale, but the messenger, Chicken Little, and the message of impending doom have remained consistent.

In the midst of all the usual confusion with the economy, real-estate woes and the subprime lending practices offering fuel for a possible recession, general and corporate aviation value trends continue to remain generally stable. Even the nearly $100 per barrel price for crude oil seems to get at the most a raised eyebrow at the pump. After a possible grumble, it’s wheels up, and life goes on. It’s the American way.

If there were any question that amergence of a global economy is a reality, one would only have to look at the impact U.S. markets had on global markets during the second week of August. The jitters experienced in U.S. markets with noticeable declines in a wide range of stocks set a rippling effect into world markets. While negative speculation created a wave of sell-off frenzies, the seasoned investor, like a professional pilot flying through unexpected turbulence, remained steady knowing their knowledge, expertise and skills would see them through into calmer air. Behind every cloud is a silver lining. As markets recover from a case of jitters, it is a proven fact a global market does exist even though each market is an independent entity. The good news is products and services remain strong, and the opportunity for economic growth is limitless.