Pre-owned aircraft sales remain sluggish: JetNet
JETNET LLC has released June 2015 and the first six months of 2015 results for the pre-owned business jet, business turboprop, helicopter, and commercial airliner markets.
In an analysis of key worldwide trends across all aircraft market segments, comparing June 2015 to June 2014, “Fleet For Sale” percentages for business jet, piston helicopters, and commercial jet market sectors were down, but stayed the same or increased slightly in the other markets. This is the lowest percentage (11.2%) for business jets since the great recession began. However, the total number of aircraft for sale is still well above the 2,200 mark.
TRENDS: Higher Asking Prices, Quicker but Fewer Sales
It has been something of a mixed bag for business jets, with the first six months of 2015 showing a 6.1% decrease in pre-owned retail transactions from the same period one year ago. But on average those jets that have sold this year have turned over on the market 39 days faster, while listing at asking prices 17.7% higher than was the case in 2014. Conversely, business turboprops decreased 10.8% in retail transactions, and did so with a double-digit decrease in asking price (down by 16.9%). Further analysis of the asking price increase has revealed that on average, newer aircraft were sold in the first six months comparison. This would seem to indicate a shift in market preference away from older equipment.
Turbine helicopters saw a decline in YTD sale transactions, down 12.2%. However, piston helicopters saw an increase in sales transactions of 14.4%. Both turbine and piston helicopters saw declines in YTD average asking prices, down 7.5% and 5.2% respectively, and are taking longer to sell, at 49 and 58 days respectively. The other aircraft markets are all selling in fewer days.
Commercial airliner trends reported by JETNET include the number for sale for both commercial jets (including airliners converted to VIP) and commercial turboprops. Commercial turboprop YTD sale transactions were significantly lower (at 291) than any of the other market sectors.
For the first six months of 2015, there were nearly 4,000 pre-owned jets, turboprops, and helicopters sold, with both business jets and commercial jets leading all types.
Global, USA, and Non-USA Pre-Owned Market Trends
A comparison of the business jet and turboprop fleet and market totals for 2014 and 2015 show that there were 52 fewer business jets for sale in the Non-USA market. However, there were 37 more turboprops for sale in the Non-USA market than in the USA. The USA also had 12,097, or 60%, of business jets in operation in June 2015, and 7,370, or 50.7%, of turboprop aircraft.