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JETNET releases May 2011 market information

July 4, 2011, Utica, N.Y. - JETNET LLC has released May 2011 and the first five months of 2011 results for the pre-owned business jet, business turboprop, and helicopter markets.


July 4, 2011
By Carey Fredericks

JETNET reported that the first five months of the 2011 pre-owned market
showed early-stage recovery signs with expectations that 2011 would be a
year of correction. In May this trend continued as JETNET reported
doubledigit growth of 19.7% in pre-owned business jet retail sale
transactions in the first five months of 2011, along with a continued
decline in average asking price.

Market Summary

Highlighted in Table A are key worldwide trends across all aircraft
market segments, comparing May 2011 to May 2010. Business Jet inventory
For Sale percentage showed the largest change (down 1.2 points), to
14.1% from 15.3%. However, the only market sector to show an increase in
for-sale inventory was the piston helicopter market, increasing 4/10 of
a point, from 6.4% in May 2010 to 6.8% in May 2011. Business Jet Sale
Transactions increased 19.7% in the first five months of 2011 compared
to the same period in 2010. Business turboprops also showed an increase
of 4.6%. Both helicopter categories saw declines in sale transactions
(down 6.3% for turbine and 16.2% for piston) in the first five months of
2011 versus the first five months of 2010.

All pre-owned aircraft categories showed large decreases in average
asking price percentages except piston helicopters, which showed an
increase of 7.1%. The decrease in the average asking price ranged from a
-26.7% for business jets to -4.9% for business turboprops and -12.6%
for turbine helicopters, as shown in the Worldwide Trends Table A.

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12 Month Moving Total Trends – Pre-owned Retail Sale Transactions

The 12 Month Moving Total Trend for both the Pre-owned Business Jet and
Business Turboprop Aircraft Retail Sale Transactions are illustrated in
Chart A from January 2004 to May 2011. As of May 2011 the Business Jet
retail transactions are 6.8% below the peak set in February 2008, and
down 23.7% for Business Turboprops from the peak also set in February
2008.

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US Economy

The U.S. Bureau of Economic Analysis (BEA) reported that 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 1.9% in 1st quarter 2011 (that is, from 4th quarter to 1st quarter) according to the “third” estimate. In the 4th quarter, real GDP increased 3.1%. Historically, whenever the U.S. economy shows a growth in GDP of greater than 3.0%, the business aviation market is in a growth mode.