JETNET releases February 2012 figures

JETNET has released February 2012 results for the pre-owned business jet, business turboprop and helicopter markets.

Highlighted in Table A are key worldwide trends across all aircraft market segments comparing February 2012 to February 2011. Fleet for sale percentages for all market sectors were down in the February comparisons.

Business turboprops came in well below the 10% mark, clearly moving it into a seller’s market.

Business jet sale transactions increased 7.7% YTD ending February 2012 compared to 2011. Business turboprops decreased 8.7%. Both turbine and piston helicopters saw double-digit declines in sale transactions YTD at 15.5% and 18.6%, respectively.

The business jet market sector was the only one to show a decline (82 days) in average days on the market YTD ending February 2012 compared to the same period in 2011. The remaining market sectors took more days to sell. In particular, the business turboprop and piston helicopter market sectors took more than 2 months on average to sell.

Pre-owned aircraft categories showed increases in average asking price percentages in the YTD February 2012 comparisons to YTD February 2011. Both business turboprops and turbine helicopters continued to show doubledigit increases in average asking prices as shown in the Worldwide Trends in Table A.

Business jets showed a positive start in 2012, with a 7.7% increase in pre-owned sales transactions, and by selling in less time than last year with a 3% increase in average asking price. However, the other market sectors are not showing similar results. Pre-owned turboprops and helicopters entered the new year with pronounced decreases in sale transactions, spending weeks-if not months-more time on market to sell, all while average asking prices are on a sharp increase.

Chart A depicts pre-owned business jet sale transactions based on a 12-month moving total, and average asking prices based on a 12-month moving average from 2004 to present. Whereas the close of 2011 was marked by a distinct, albeit brief, spike of activity
(prices decreased and sales increased), the first quarter of 2012 has performed in a very flat-line manner.

A similar view of business turboprops in Chart B shows a steady growth in pre-owned sales transactions and a flat line in average asking price over the past several months. This is a much different picture than that depicted for January and February 2012, where sale transactions were decreasing while average asking prices were increasing at double-digit rates. The overall increase in prices is welcome news for the OEMs, some of which had to offer deep discounts to move unsold inventory. It’s not the first increase in prices since the downturn.

There were temporary upticks early last year, and JETNET cautions that one or two months do not make a trend. A number of factors could play into the price increases, including the mix of models sold. However, this is an indicator that a correction is still in the works as 2012 continues to unfold.