Pre-owned private jets see “mediocre” sales activity in Q1

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by CJI Expert
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New data from AMSTAT shows year-on-year decreases for pre-owned private jet transactions.
ACJ319 NBAA 2013

Heavy jets, such as the Airbus ACJ319, are seeing large increase in average asking prices.

In the first three months of 2014, some 468 pre-owned business jets were sold in what has been described by AMSTAT, the leading provider of corporate aviation fleet and operator data, as a “mediocre” quarter.

This represents 2.3 per cent of world’s 20,170 business jets, which break-down as follows:

  • Heavy jets: 92 sales (1.7 per cent of the fleet)
  • Medium jets: 184 sales (2.7 per cent of the fleet)
  • Light jets: 192 sales (2.4 per cent of the fleet)

All three of these segments saw percentage decreases of up to 0.9 per cent, when compared to the number of sales in the previous quarter, and up to 0.4 per cent, when compared to the first quarter of 2013.

“With Q4 traditionally the most active quarter for transactions each year, it is not unusual for transaction activity to drop during Q1 of the following year,” said Andrew Young, general manager of AMSTAT. “This was certainly true this year with 2.3 per cent of the business jet fleet turning over in Q1 2014, compared to 3 per cent in Q4 2013. However, it was disappointing to see a smaller percentage of the active fleet turning over in Q1 2014 versus Q1 2013.”

AMSTAT also counted a total of 2,355 business jets listed for sale (11.7 per cent of the fleet) in Q1, which was 1.1 per cent down on the previous year.

Looking at average asking prices, year-on-year for medium jets and light jets continued their downward trend, although heavy jets were up 9.5 per cent year-on-year from around $14 million to $15.4 million

“It should be noted that the heavy jets represent a smaller data set and the addition of a few higher priced units can change the averages and potentially the short-term market trend,” added Young. “If we look at the raw data for April we see that a number of new listings (largely, later heavy jet models) were added for sale with asking prices that might be termed “adventurous” in the context of peer listings.”

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