JETNET releases November 2012 and eleven month data

JETNET has released November 2012 and November 2012 year-to-date (YTD) 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 November 2012 to November 2011 as well as November 2012 YTD numbers. The Fleet For Sale percentages for all market sectors were down in the November comparisons, with the largest drop in business turboprops, to 8.5% from 9.9% in November 2011.

November Business Aircraft Helicopters

Key Metrics (November 2012 vs. November 2011 and November 2012 YTD)

For Sale inventories continue to decline:

• Business jets for sale were at 13.6% (down 0.4 from 14.0%)

• Business turboprops for sale were at 8.5% (down 1.4 from 9.9%)

• Turbine helicopters for sale were at 6.2% (down 0.6 from 6.8%)

• Piston helicopters for sale were at 6.1% (down 0.2 from 6.3%)

Full Sale Transactions had mixed results, with only business jets showing growth:

• Business jets were up (5.7%)

• Business turboprops were down (-4.4%)

• Both turbine (-1.6%) and piston (-4.9%) helicopters were down

Average Days on Market are all at very high levels:

• All market sectors have shown increases in Average Days on Market YTD through November 2012, except business jets which took the same number of days on average to sell

• Piston helicopters took more than a month (37 days) longer to sell than a year ago

Average Asking Prices showed mixed results:

• Business jets (+1.8%), business turboprops (+1.5%), and turbine helicopters (+12.0%) increased

• Piston helicopters (-0.4%) decreased

November 2012 YTD Summary

Business jets are on a positive pace in 2012, with 5.7% growth YTD in November 2012 in the preowned full retail sale transactions (see Charts A1-A4), and a 1.8% 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 decreasing sale transactions, are taking longer to sell on average, and are at much greater average asking prices compared to the same 2011 period.

Source, Charts A1-A4: JETNET; Whole and Lease Transactions; Analysis and Presentation by Chase & Associates

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

Good News

Real gross domestic product—the output of goods and services produced by labor and property located in the United States—increased at an annual rate of 3.1% in the third quarter of 2012 (that is, from the second quarter to the third quarter), according to the “third” estimate released by the Bureau of

Economic Analysis. In the second quarter of 2012, real GDP increased 1.3% and matched the exact same percentage, 1.3%, reported in the 3rd quarter 2011, as reflected in the following table:

US Gross domestic product (GDP)

The “third” estimate of the U.S. GDP is welco me news, and the first time this year that the GDP has exceeded the 3.0% growth mark (when business aviation does well). The BEA release showed the economy grew for the 13th straight quarter. However, reflecting on the strong 4th quarter 2011 GDP growth of 4.1% (see table above), will the U.S. witness a repeat of this growth in the 4th quarter 2012 when all the numbers are in?