The Future Of Airplane Prices - Still High!

Light sport aircraft prices have significantly increased in recent years, primarily due to pandemic-related supply chain issues and increased manufacturing costs. The speaker argues that some prices are inflated and discusses potential solutions, including shared ownership models through his platform, air moo.io, and the upcoming Part 23 changes which could potentially alter the landscape of general aviation, specifically entry-level aircraft.

Light Sport Price Hike

• 00:00:08 The average price of a new light sport aircraft is around $300,000, a significant increase from just a few years ago when some models were available for under $100,000. This increase is primarily attributed to pandemic-related supply chain disruptions, increased costs of parts and materials, and higher insurance premiums. The speaker believes that some manufacturers are engaging in price gouging, taking advantage of the high demand and limited supply.

Impact of Part 23

• 00:04:06 The upcoming changes to Part 23 regulations, expected in the first quarter of 2025, are anticipated to change the general aviation market, particularly for entry-level aircraft. The speaker believes that this will increase the demand for certain aircraft, such as the Sling TSI and RV-10, and likely lead to an increase in their value due to their advanced features and capabilities, which compare favorably to certified aircraft.

Solutions for High Prices

• 00:06:30 The speaker suggests solutions to address the high prices, including shared ownership models. His platform, air moo.io, aims to address this by allowing multiple individuals to share the cost of aircraft ownership, reducing the financial burden of acquisition, maintenance, insurance, and hangar costs. The speaker views this shared ownership model as the potential future of aircraft ownership.

Current Market Conditions

• 00:09:59 The speaker notes that the fourth quarter of the year is typically a good time to buy or sell an aircraft as people look to finalize their flying plans for the year. However, even with potential buyers entering the market, the speaker still finds the prices for light sport aircraft to be excessive. The speaker believes that the prices may eventually drop as the market stabilizes, with demand for some planes decreasing.