Pre-owned business aircraft sales up 7% in Q1 2021: Asset Insight

Mike Stones

The sales of pre-owned business aircraft rose 7% in the first quarter of 2021, revealed the latest Asset Insight AI2 Market Report. But ask prices were down by nearly 6% over the period.

Overall demand climbed by nearly 44% compared with the first quarter (Q1) of last year but remained unchanged since the fourth quarter.

“Across all segments, the pre-owned aircraft market was robust and active in Q1 2021,” said Tony Kioussis, president of Asset Insight. “Buyers snapped up late model, higher quality aircraft at an impressive rate. Owners with aircraft carrying higher maintenance exposure should expect to spend over six-months more on the market than younger aircraft with less pending maintenance.”

‘Robust and active in Q1 2021’

During the first quarter of this year, higher quality, newer aircraft sold best, leaving older aircraft, with lower quality ratings, in the for-sale pool. This resulted in the inventory fleet achieving an ETP Ratio (Maintenance Exposure to Ask Price Ratio) of 74.4% – the worst on record.

Aircraft with an ETP ratio of 40% or higher were listed for sale 69% longer than aircraft with lower ETP ratios. Maintenance exposure – a measure of the business aircraft’s accrued/embedded maintenance cost – increased for all jet market segments compared with the first quarter of 2020. Exposure for turboprops decreased year-over-year.

Maintenance exposure

Ask prices were down across all market segments during the first quarter of this year versus the first three months of last year. During the past quarter midsize jets and turboprops posted increased prices, while large and light jets saw decreases.

The first quarter AI2 Market Report covers 134 fixed-wing models and 1,661 aircraft listed for sale.

Meanwhile, the International Aircraft Dealers Association (IADA) predicted that sales of light and midsize jets will show the strongest growth over the next six months. The report revealed that IADA accredited dealers closed 211 pre-owned aircraft sales transactions in the first quarter of 2021. Another 246 aircraft are expected to close in the next few months.

Pictured above is a 2013 Gulfstream G280, offered for sale by Mesinger Jet Sales at $10.25m.

 

Asset Insight AI2 Market Report – at a glance

  • -Sales of pre-owned business aircraft rose 7% in the first quarter of 2021
  • -Ask Prices were down by nearly 6% over the period
  • -Overall demand up nearly 44% on Q1 2020 and unchanged on Q4 2020
  • -Higher quality, newer aircraft sold best with older aircraft, with lower quality ratings, remaining in the for-sale pool
  • -Inventory fleet achieving an ETP Ratio of 74.4% – the worst on record
  • -The report covers 134 fixed-wing models and 1,661 aircraft listed for sale.

 

Above: Tony Kioussis, president of Asset Insight.

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