RE:RE:RE:RE:Implications of this plunge I think the concern will be, if the stk mkt fall continues, that the recent big influx of new end-user customers will end and at least somewhat reverse. It's those actually flyers that drive jet orders, so orders will not be as high as was just recently expected. It could be the stress test of the wealth effect part of the recent Covid/wealth effect demand bump that a lot of investors have been wondering about---how sticky will these flyers be?
stockitnow wrote: Its not cheap to walk away from a jet order. It will cost them a lot. When private jets are ordered then customer puts initial deposit of 10-20% of full purchase price, and as the airplane gets build more payments are made to reflect increase value of unfinished jet. When the customers goes to pick the jet up then they pay for the reminder. If they walk away then they lose all the deposit. During 2009 financial crisis alot of business who had made deposit and were close to receiving their jet ended up quitely taking ownership of the jets and parking them. Some who had less than 40% deposit walked away giving the OEM 40% paid off jet to be sold later for full price. Only exception is Cessa, they still build white tails. The pain in stock market is short term. I suspect those buying jets will go through with it.
Truthifest wrote: For sure, but the stk mkt unwind, if it keeps going, will cause some number of new private jet customers to go cautious and retreat from the business. IOW, at least a partial unwind of those customers. The big question is how much, which of course no one can yet answer.