JETNET publishes July and first seven months of 2011 activity
Report indicates mixed signals, some signals showing that recovery is slowly working and that others are not
JETNET has released July 2011 and the first seven
months of 2011 results for the pre-owned business jet, business turboprop, and
As the 2nd half of 2011 begins, we are seeing mixed
signals from both new and pre-owned fixed wing and rotary marketplaces. Some of
the signs are indicating that the recovery is slowly working, while others are
- New aircraft deliveries are down 16% and billing is down 22% compared
- Business Jets showed the largest decline, down 26%
- Cessna is the only OEM in the Top 6 to show an increase in new
deliveries: up 35%
- Dassault Falcon and Embraer are down 58% and 48% respectively
- Pre-owned Business Jet Sale Transactions are up 11.2%
- Average Asking Price is down by 9.2% but showed increases in June
and July 2011 vs. 2010
- For Sale
inventories have continued to slowly drop to 13.7% for business jets and
10.1% for business turboprops
- Jet-A Fuel Prices have increased steadily and are within 3% of the
previous 2008 record level
- The U.S. Economy had a weak 1% GDP growth (“second” estimate) in
the 2nd quarter of 2011
GAMA released first half year new deliveries. The new
aircraft deliveries for the first six months of 2011 totaled 791 compared to
937 in the first half of 2010.
Business jets total new deliveries for six months
2011 were 261, down 94 from the total of 355 in first half 2010 (decline of
Business turboprops total new deliveries for six
months 2011 were 143, 14 from the total of 157 in the first half of 2010
Piston total new deliveries for six months of 2011
were 387, down 38 from the total of 425 in the first half of 2010 (decline 9%).
GAMA reported that total billings for new deliveries
for six months 2011 were $7.307 billion, down from $9,405 billion in the first
six months of 2010 (decline 22%).
GAMA reported new aircraft deliveries from the six
leading OEMs show that they delivered 287 new aircraft deliveries in the first
six months of 2011, compared to 344 in the first half of 2010 (decline 17%)
New aircraft deliveries for Bombardier for the first
six months of 2011 were 69 aircraft; compared to 82 in the first half of 2010
New aircraft deliveries for Cessna for the first six
months of 2011 were 100 aircraft; compared to 74 in the first half of 2010,
this figure includes turboprops and piston aircraft (increase 35%).
New aircraft deliveries for Gulfstream for the first
six months of 2011 were 47 aircraft; compared with 56 in the first half of 2010
New aircraft deliveries for Hawker Beechcraft for the
first six months of 2010 were 21 aircraft; compared to 27 in the first half of
2010, this figure includes turboprops and piston aircraft (decline 22%).
New aircraft deliveries for Dassault Falcon for the
first six months of 2011 were 19 aircraft; compared with 45 in the first half
of 2010 (decline 58%).
New aircraft deliveries for Embraer for the first six
months of 2011 were 31 aircraft; compared with 60 in the first half of 2010
GAMA reported Top Six OEM billings for the first six
months of 2011 were $6.584 billion, down from $8.230 billion in the first half
of 2010 (decline 25%).
JETNET reported that the first six months of the 2011
pre-owned market showed early-stage recovery signs. In July this trend
continued as JETNET reported double-digit growth of 11.2% in pre-owned business
jet retail sale transactions in the first seven months of 2011. However, the
long-anticipated good news is that the average asking price in June and July
improved by $1.2 million and $2.7 million respectively compared to 2010, a
trend seen for the first time in 2011. Two consecutive months of increases in
the average asking price for business jets is a clear signal that the bottom
has been reached in average asking price and that a turn-around is in the
JETNET Market Summary report key worldwide trends
across all aircraft market sectors comparing July 2011 to July 2010. Business
Jet inventory For Sale
percentage showed the largest change (down 1.2 points), to 13.7% from14.9%.
However, the only market sector to show an increase in for-sale inventory was
the piston helicopter market, increasing from 6.3% in July 2010 to 6.5% in July
2011. Business Jet Sale Transactions increased 11.2% in the first seven months
of 2011 compared to the same period in 2010. Business turboprops also showed an
increase of 3.7%. Both helicopter categories saw double-digit declines in sale
transactions (down 11.5% for turbine and 17.7% for piston) in the first seven
months of 2011 versus the first seven months of 2010.
All pre-owned aircraft categories showed large
decreases in average asking price percentages after seven months except piston
helicopters, which showed an increase of 5.2%. The decrease in average asking
price ranged from a -9.2% for business jets to -3.8% for business turboprops
and -11.0% for turbine helicopters.
JETNET report that in July 2011, there were 2,391
business jets for sale (13.7% of pre-owned business jets). There were 1,324
business turboprops for sale (10.1% of pre-owned business turboprops). There
were 1,189 turbine helicopters for sale (6.7% of pre-owned turbine helicopters
and finally 592 piston helicopters for sale (6.5% of pre-owned piston
JETNET report the January to July 2011 full sale
transactions were 1,181 business jets with an average days on market of 385
days and an average asking price of $4.490 million. There were 611 business
turboprops with an average days on market of 310 days and an average asking
price of $1.276 million. There were 709 turbine helicopters with an average day
on market of 406 days with an average asking price of $1.268 million. There
were 479 piston helicopters with an average days on market of 322 days with an
average asking price of $0.223 million.
JETNET report that the 2011 pre-owned business jet
fleet in operation in July 2011 is 18,160 aircraft, compared to 17,561 in July
2010 (increase 3.4%).
There were 151 full sale transactions in July 2011,
compared to 172 in July 2010 (decline 12.2%).
Average days on market for these 151 transactions were 393 days with an
average asking price of $6.857 million, compared to the 172 transactions in
July 2010, the average days on market for those were 384 days with an average
asking price of $4.177 million (increase 64.2%).
The January to July 2011 full sale transactions were
1,181, compared with 1,062 in the seven months of 2011 (decline 11.2%). The
average days on market for the 1,181 transactions in the first seven months of
2011 were 385 days with an average asking price of $4.490 million. The average
days on market for the 1,062 transaction in the first seven months o 2010 was
384 days with an average asking price of $4.944 million (decline 9.2%).
JETNET Business Jet for-sale fleet age report says that
of the 18,157 aircraft in operation in July 2011, 12,237 aircraft are under 20
years old with 5,920 older than 21 years. 1,239 aircraft between 0 – 20 years
are for sale (10.1% of the current fleet). 1,251 aircraft older than 21 years
are for sale (21.1% of the current fleet).
In July 2006, the in operation fleet totaled 13,744
aircraft. The 0 – 20 years aircraft totaled 8,629 with 5,115 older than 21
years. 664 aircraft between 0 – 20 years were for sale (7.6% of the then
fleet). 1,062 aircraft older than 21 years were for sale 20.8% of the then
JETNET report that the 2nd quarter 2011 US Jet-A prices at $6.63 per gallon
are on the rise, up $1.10 per gallon (19.9%) from $5.53 in the 2nd quarter
2010. A big concern is that the current fuel price is only 20 cents below the
2008 record-setting price of $6.83 per gallon.
JETNET report that in the US Economy real gross domestic
product-the output of goods and services produced by labour and property
located in the United States-increased at an annual rate of 1.0% in the 2nd
quarter 2011, (that is, from the 1st quarter to the 2nd quarter),
according to the “second” estimate released by the Bureau of Economic
Analysis. In the 1st quarter, real GDP increased 0.4%. Historically, whenever
economy shows a growth in GDP of greater than 3.0%, the business aviation market
is in a growth mode. Unfortunately, the U.S. economy has reported in the
first two quarters of 2011 GDP percentage growth numbers well below this level.
JETNET summarises that the market recovery in the 2nd
half of 2011 depends on stronger GDP growth in the US economy and fuel prices being
held in check. It is very important that new aircraft deliveries pick up in the
2nd half as well. The pre-owned market has been slowly improving in 2011, and
the average asking price for pre-owned business jets has improved in the past
two months, providing positive signs for business aircraft owners.