JETNET releases August and eight month 2012 figures
JETNET has released August 2012 and YTD 2012 results for the pre-owned business jet, business turboprop and helicopter markets.
The market summary highlighted in Table A are the key worldwide trends across all pre-owned aircraft market sectors, comparing August 2012 to August 2011 as well as YTD numbers. The Fleet For Sale percentages for all market sectors were down in the August comparisons, with the largest drop in business turboprops, from 10.1% in August 2011 to 8.8% in August 2012.
Key Metrics (August 2012 vs. August 2011):
For Sale inventories continue to decline.
Business jet inventory for sale is at 13.7% (down 0.1 points from 13.8%)
Business turboprop inventory for sale is at 8.8% (down 1.3 points from 10.1%)
Turbine helicopter inventory for sale is at 6.3% (down 0.4 points from 6.7%)
Piston helicopter inventory for sale is at 6.2% (down 0.3 points from 6.5%)
Full Sale Transactions had mixed results, with only business jets showing growth.
Business jets were up 6.6%
Business turboprops were down 3.2%
Both turbine and piston helicopters were down (9.5% and 11.9% respectively)
Average Asking Prices show mixed results.
Business jets (down 1.1%) and business turboprops (down 5.2%) show decreases
Turbine helicopters (up 12.9%) and piston helicopters (up 2.7%) show increases
Average Days on the Market are all at very high levels.
All market sectors show aircraft on the market more than a year (on average) before a sale, except business turboprops (at 339 days)
In August, all market sectors have shown increases in average days on the market, except for business jets which took 8 fewer days before being sold
Piston helicopters took two months (61 days on average) 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.
Historically, business aviation has done well when the U.S. GDP growth is 3.0% or greater. The U.S. Bureau of Economic Analysis (BEA) has reported through September 2012 that the 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 1.3% in the second quarter of 2012 (that is, from the first quarter to the second quarter), according to the “third” estimate released by the Bureau of Economic Analysis.
In the first quarter, real GDP increased 2.0%.