Asset Insight says for sale fleet at six month marketability peak
According to Asset Insight’s quarterly Market Report (AI2Market Report), while Q1 2018 indicators are mixed, the combination of asset quality and price across the for-sale fleet is at its best point of the last six months and, as Asset Insight predicted, many ask prices are increasing and the market is generally stabilizing. Both buyers and sellers are realizing the best values in months.
The Q1 2018 AI2Market Report analyzes values for every production year of every modern make and model Business Class aircraft, while the Report’s maintenance analytics cover 92 fixed-wing models and 1,657 aircraft listed for sale.
Other trends detailed in the Q1 2018 Market Report include:
• Large & Medium Jet Ask Prices strengthen,
• Ask versus final Transaction Value gap continues to improve,
• For sale fleet maintains a “Very Good” Asset Quality Rating,
• Maintenance Exposure continues to be better than the historical average, and
• Maintenance Exposure to Ask Price Ratio (“ETP Ratio”) is at its 6-month best figure.
“2018 has started off well, and we expect to see further stabilization in the coming months,” said Tony Kioussis, president of Asset Insight, LLC. “As the Asset Insight system predicted, ask prices for many segments are increasing, and the youngest and best quality aircraft, assuming they are ADS-B compliant, are transacting quickly. The bad news is for owners of older aircraft, especially those not already ADS-B compliant, as they will continue to struggle against the much better-positioned, high-quality aircraft for sale.”
Exclusively available from Asset Insight, the AI2Market Report includes eTrendTM, a 90-day forecast for aircraft value by make and model. This tool is especially helpful to sellers who are evaluating offers on their aircraft while concurrently considering if their prospects are likely to improve.
Statistically, Asset Insight’s eTrendTM forecasts are based on some of the most robust data analytics in the industry and have been thoroughly back tested to confirm a significant degree of accuracy.
To download the complete Market Report covering Q1 2018, visit www.assetinsight.com or click here.
Asset Insight’s proprietary Asset Grading System ProcessTM (AGSP) analyzed the average maintenance condition of jet and turboprop aircraft listed for sale as of March 29, 2018, (Source: AMSTAT) to generate the AI2Market Report.
The AGSP derives the Asset Insight Index, a standardized scale that allows any aircraft to be compared directly to any other aircraft by determining how each asset’s current maintenance status compares to its Optimum Maintenance Condition – achieved on the day the aircraft came off the production line. The AGSP is based on proprietary algorithms that examine current age, flight hours and cycles on an aircraft’s systems and major sectors – airframe, engine(s), propeller(s), APU, paint, and passenger interior – as well as the typical cost to repair or replace parts with no defined life.