June 2012 And YTD 2012 Results For The Pre-Owned Business Jet, Business Turboprop And Helicopter Markets.
Corporate aviation information provider Jetnet has released June 2012 and YTD 2012 results for the pre-owned business jet, business turboprop and helicopter markets. The “Fleet For Sale” percentages for all market sectors were down, comparing June 2012 to June 2011.
Business jet sale transactions increased 4.9 percent YTD in June 2012 compared to 2011, and they are selling in 14 fewer days. Business Turboprops also showed a small improvement of .2 percent, whereas Turbine and Piston helicopters saw declines in YTD sale transactions of 14.2 percent and 12.1 percent respectively. The business jet average asking price increased 4.9 percent for the 2012 YTD comparison to the same period in 2011. Sale transactions for turbine helicopters have declined at an average of 14.9 percent since January 2012. However, the average asking price increase of 9.7 percent continues to fuel the decline in pre-owned sale transactions. It is also now taking 21 days longer to find a buyer compared to the same period last year.
Real gross domestic product increased at an annual rate of 1.5 percent in the second quarter of 2012 (that is, from the first quarter to the second quarter), according to the “advance” estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 2.0 percent, up from 1.9 percent last month. The Bureau emphasized that the 2nd quarter advance estimate is based on source data that are incomplete or subject to further revision by the source agency. The “second” estimate for the 2nd quarter, based on more complete data, will be released on August 29, 2012. The report showed the economy grew for the 12th straight quarter. However, the weaker growth adds to worries that the economy could be stalling three years after the recession ended. The 1.5 percent growth rate in the second quarter was the weakest since the economy, as measured by GDP, expanded at a 1.3 percent rate in the 3rd quarter last year.
U.S. business jet domestic flight operations were at 271,000 in June 2012, which is 102,000 (or 27.3 percent) flights below the peak level of 373,000 reported in October 2007. However, there has been a steady improvement from the low of 225,000 recorded in February 2009. March 2011 represented a peak of 297,000 flights. Over the past 24 months domestic flight operations have averaged 274,000 operations and have been unchanged in spite of the recent decrease in fuel prices. International flight operations activity has shown an average of 54,000 flights over the past 24 months, with peak periods hitting 62,000 flights twice during March and once in September.
Expectations for the remainder of 2012 remain cautiously positive, and it is hoped that the YTD 4.9 percent growth rate in business jet retail transactions can be sustained throughout the balance of this year.