Thu, Oct 04, 2012
But Data Suggests That Recovery Continues To Be Slow
In its August and year-to-date business aircraft market information released Tuesday, JetNet reports that while the pre-owned market continues to show improvement, all market metrics have been slow to recover. Much has improved, though, compared to the lows recorded over the past three years.
Historically, business aviation has done well when the U.S. GDP growth is 3.0% or greater. The U.S. Bureau of Economic Analysis (BEA) has reported through September 2012 that the real gross domestic product—the output of goods and services produced by labor and property located in the United States—increased at an annual rate of 1.3% in the second quarter of 2012 (that is, from the first quarter to the second quarter), according to the "third" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 2.0%.
The analysis shows that 'For Sale' inventories continue to decline.
- Business jet inventory for sale is at 13.7% (down 0.1 points from 13.8%)
- Business turboprop inventory for sale is at 8.8% (down 1.3 points from 10.1%)
- Turbine helicopter inventory for sale is at 6.3% (down 0.4 points from 6.7%)
- Piston helicopter inventory for sale is at 6.2% (down 0.3 points from 6.5%)
Full Sale Transactions had mixed results, with only business jets showing growth.
- Business jets were up 6.6%
- Business turboprops were down 3.2%
- Both turbine and piston helicopters were down (9.5% and 11.9% respectively)
Average Asking Prices show mixed results.
- Business jets (down 1.1%) and business turboprops (down 5.2%) show decreases
- Turbine helicopters (up 12.9%) and piston helicopters (up 2.7%) show increases
All market sectors show aircraft on the market more than a year (on average) before a sale, except business turboprops (at 339 days). In August, all market sectors have shown increases in average days on the market, except for business jets which took 8 fewer days before being sold. Piston helicopters took two months (61 days on average) longer to sell than a year ago.
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