Asking Prices On Resale Bizjets Ticked Up 3.5 Percent

One of the reasons often given for slow sales of new business aircraft is the existing inventory of pre-owned aircraft on the market. Recent data from JETNET may indicate that the inventory is shrinking, causing prices in some sectors to firm up just a bit. In its August, 2011 report reflecting resale statistics for the first eight months of the year, the analyst released some long-hoped-for good news, at least in business jet retail sale transactions. In the first eight months of 2011, the year-to-date (YTD) average asking price increased 3.5% while the industry maintained double-digit growth at 11.4%.

The company tracks statistics for the the pre-owned business jet, business turboprop, and helicopter markets.

The report also indicates "For Sale" inventories continue to decline:

• Business jet inventory for sale at 13.8% (down 1.1 points from 14.9%)
• Business turboprops for sale at 10.2% (down 0.5 points from 10.7%)
• Turbine helicopters for sale at 6.7% (down 0.2 points from 6.9%)
• Piston helicopters for sale at 6.5% (no change)

 
Full sale transactions show mixed results, with both Business Jet (+11.4%) and Business Turboprops (+11.7%) showing double-digit growth, while both Turbine (-11.6%) and Piston helicopters (-17.9%) show double-digit declines

As far as average asking prices are concerned, the results are mixed. Business jets show positive change for first time YTD, up 3.5 percent, and piston helo asking prices went up 5.1%. But both business turboprop fixed wing (-1.5%) and turbine helicopters (-13.8%) show decreases

All market sectors are over 300 days average on the market before a sale, but that is down in August, except for business turboprops which took 11 days longer

JETNET says that, while the pre-owned market continues to show improvement, it has been a slow recovery. It is a good sign that the numbers are much improved compared to the lows recorded over the past two years.

FMI: www.jetnet.com