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Aviation News Item: 11769
26th Aug 2010
Pre-Owned Aircraft: Recovery Continues, But At An Uneven Pace
Source: fly-corporate.com
 JETNET LLC, a provider of corporate aviation information, has released its July 2010 results for the pre-owned business jet, business turboprop, and helicopter markets.
In Short…
In examining worldwide trends across all aircraft market segments for the first seven months of 2010 versus 2009, it appears that the business jet inventory for sale shows the largest change, down to 14.9% from 17.7%. Most important is the percentage change in the Sale Transactions: business jets lead with the largest percentage gain, 33.8%, compared to 2009.
All aircraft categories are taking longer to sell in 2010, ranging from 30 to 126 more days in the YTD comparisons. The piston helicopter segment is the only one in the aircraft market to show an increase in the average asking price (of 2.9%). However, the piston helicopter segment is also the only one to be down in sale transactions (a 6.3% drop).
Business Jet Aircraft
The number of business jets for sale at the end of July 2010 was slightly more than 2,600 aircraft, compared to 2,961 a year ago in July 2009. This month-over-month decrease was the largest single month decline this year at 345, or 11.7% fewer business jets for sale.
As the for sale inventory has declined, the number of pre-owned full sale transactions increased to 157 in July 2010, up from 137 in 2009. However, when the first seven months of 2010 (at 1,038) is compared to the first seven months of 2009 (at 776), pre-owned full sale transactions are up by 33.8%. Still, they were taking an additional 77 days on the market before selling in the first seven months of 2010 compared to the same period in 2009, while asking prices were down by nearly 13%.
Business Turboprop Aircraft
Inventory levels for pre-owned business turboprop aircraft for sale at the end of July 2010 have followed the same pattern as the business jet aircraft market. The percentage of pre-owned business turboprop aircraft for sale was 10.9% in July 2010, and has declined from the peak of 12.0% set in both May and June 2009.
The number of business turboprops for sale at the end of July 2010 was slightly less than 1,400 aircraft.The number of pre-owned business turboprop aircraft full sale transactions in July 2010 dropped by 1/3 (or 69) compared to 105 in July 2009. This is a significant one-month decline, a trend that JETNET will continue to track and report.
However, looking at the seven-month total transactions shows a 5.5% increase in the year-to-date numbers compared to the same period in 2009. It's taking an additional 30 days on the market for business turboprop aircraft to sell, and the average asking price is down by 10.5% in the first seven months of 2010 compared to the same period last year.
Helicopter - Turbine
The number of pre-owned turbine helicopters for sale in July 2010 was less than 1,200 helicopters. The percentage for sale at 6.8% in July 2010 changed little from 6.7% in July 2009.
The number of pre-owned full sale transactions for turbine helicopters increased by 13.1% in the first seven months of 2010 compared to 2009. However, they're taking an additional 97 days to sell, and at lower asking prices.
Helicopter - Piston
The number of pre-owned piston helicopters for sale in July 2010 was 564 helicopters. The percentage for sale at 6.3% was below the 7.4% level from the same period of 2009. There were 74 fewer piston helicopters for sale on the market in July 2010 compared to July 2009.
The number of pre-owned piston helicopters full sale transactions in July 2010 decreased nearly 25% compared to July 2009. However, transactions are down by 42 in the first seven months of 2010, or 6.3%. JETNET says it will track this month-over-month declining trend in the remaining months of this year.
Also significant is the average days on market of 312 days for piston helicopters, or 162 more days to sell in the first seven months of 2010 compared 2009. However, the average asking price for piston helicopters remained relatively unchanged in the January to July 2010 period compared to 2009.
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