JETNET releases October 2012 and first ten months 2012 data

JETNET has released October 2012 and year-to-date (YTD) 2012 results for the pre-owned business jet, business turboprop and helicopter markets.

Market Summary
Highlighted in Table A are key worldwide trends across all pre-owned aircraft market sectors, comparing October 2012 to October 2011 as well as YTD. The Fleet For Sale percentages for all market sectors were down in the October comparisons, with the largest drop in business turboprops, to 8.5% from 9.8% in October 2011.

Key Metrics (October 2012 vs. October 2011 and YTD)
For Sale inventories continue to decline:
• Business jets for sale were at 13.5% (down 0.3% from 13.8%)
• Business turboprops for sale were at 8.5% (down 1.3% from 9.8%)
• Turbine helicopters for sale were at 6.2% (down 0.5% from 6.7%)
• Piston helicopters for sale were at 6.0% (down 0.3% from 6.3%)

Full Sale Transactions had mixed results, with only business jets showing growth:
• Business jets were up 7.6%
• Business turboprops were down (-3.3%)
• Both turbine (-7.2%) and piston (-7.7%) helicopters were down

Average Asking Prices show mixed results:
• Both business jets (+5.5%) and turbine helicopters (+12.8%) increased
• Both business turboprops (-3.7%) and piston helicopters (-2.2%) decreased

Average Days on Market are all at very high levels:
• All market sectors were on the market for at least one year or more (on average) before a sale, except business turboprops (at 342 days)
• All market sectors have shown increases in Average Days on Market YTD through October, except business jets which took exactly one year (365 days). The YTD October 2011 Average Days on Market was also 365 days, so there was no change.
• Piston helicopters took more than a month (41 days) longer to sell than a year ago

While the pre-owned market continues to show improvement, all market metrics have been slow to recover, though are much improved compared to the lows recorded over the past three years.

The Compounded Annual Growth Rate (CAGR) has averaged 12.2%, reflective of the great strides that have taken place in the pre-owned business jet market full-sale transactions from YTD October 2009 to YTD October 2012. A strong recovery of the pre-owned business jet market full-sale transactions is underway in 2012 and should result in a new record peak activity, surpassing that last seen in 2007.

Business jets are on a positive pace in 2012 with 7.6% growth YTD in pre-owned sales transactions, and a 5.5% increase in average asking price compared to the same period in 2011. However, other market sectors are not showing similar results. Other pre-owned aircraft are showing decreases in sales transactions, are taking longer to sell on average, and are at much greater average asking prices compared to the same period in 2011.

Significant is the double-digit increase in turbine helicopter average asking price. While price increases are evident across the board for all models in this segment, there were also several very-high-asking price models that came to market in 2012. These models had asking prices exceedingly higher than those of the typical helicopter on the market.