Use of business aviation is a hallmark of well-managed, admired and profitable American enterprises, and these firms outperform those that don’t use business aircraft, a new study of S&P 500 companies by Nexa Advisors finds.

The study, “Business Aviation and Top Performing Companies, 2017,” covers the years 2012 to 2016 inclusive and builds on five previous Nexa studies, sponsored by NBAA and the General Aviation Manufacturers Association (GAMA), that have consistently found bizav-boosted S&P 500s create more shareholder value than their counterparts. Growth in enterprise value “is over 70 percent greater for users over that five-year period,” lead author Michael Dyment said.

Serving as an unintended rejoinder to news of GE’s flight operations shuttering, the study also indicates companies that eliminated flight departments subsequently had less financial success than continuing bizav users. The report also notes that business aviation is used by 98 percent of the top 50 among Fortune’s “World’s Most Admired Companies,” 100 percent of the companies in Forbes magazine’s listing of “100 Most Trustworthy Companies in America,” and 92 percent of the 100 Best Corporate Citizens, according to the CRO 2017 rankings.

Available preowned business jet inventory last month was 7 percent lower year-over-year and now represent 10.3 percent of the installed base, the lowest since before the financial crisis, according to data from UBS Global Research.

At 5 percent of installed base, inventory of zero- to five-year-old preowned business jets fell 4 percent sequentially and 25 percent lower year over year. Meanwhile, inventory of six- to 10-year-old preowned jets also decreased by 4 percent and shrunk 10 percent from a year ago, now standing at 10 percent of the installed base. Midsize jets improved the most in the former segment, while long-range jets did best in the latter category.

“We believe young used inventories are approaching healthy levels, which we estimate at less than 5 percent for zero- to five-year and less than 10 percent for six- to 10-year,” UBS aerospace researchers David Strauss and Darryl Genovesi said. “Of young aircraft (zero to 10 years old), inventory levels are lowest for Bombardier/Gulfstream at 6 percent and 4 percent for zero to five years old.”

According to UBS, North America appears to be the best with 7 percent of the young business jet fleet available, while Europe is highest at 10 percent. Among young aircraft, small and large-cabin zero to five-year-old inventory has declined to roughly 6 percent of installed base, with midsize jets down to 4 percent, UBS said. Among large-cabin jets, “pricing appears to have stabilized for the Gulfstream G550 and G650/650ER.”

Youngest used drop 4% sequentially, 25% YOY. Available for sale business jet inventories were 7% lower y/y in August (-2% sequentially), and now represent 10.3% of the installed base, the lowest since before the financial crisis. Inventories of 0-5 year old were 4% lower in August (-25% y/y) at 5% of installed base (mid-range best at 4%), with 6-10 year old inventories also 4% Lower (-10% y/y) at 10% of installed base (long best/mid-range worst). We believe young used inventories as approaching healthy levels, which we estimate at <5% for 0-5 year and <10% for 6-10 year. Retirements low at <1% of the installed base.

Bombardier/Gulfstream 4% of 0-5 fleet available for sale Of young aircraft (0-10 yrs. old), inventory levels are lowest for Bombardier/Gulfstream at 6% (4% for 0-5 yrs. old). N America continues to look best with only 7% of young fleet available, while Europe is highest at 10%. Among young aircraft, small & large cabin 0-5 year old inventories have declined to roughly 6% of installed base, with mid down to 4%. Among large cabin, pricing appears to have stabilized for G550/G650/G650ER (Figure 2).COL/GD to benefit from improve in fundamentals Business jet fundamentals, including used inventories and pricing along with utilization, appear to be modestly improving. Both COL (Neutral rated) and GD (Buy rated) should benefit from accelerating defense growth and offer significant leverage to business jet improvement.