Record Low Prices in Q2 pre-owned jet and turboprop transactions

Anthony Kiousis

According to Asset Insight, the demand for pre-owned business jet and turboprop aircraft remains unchanged with record low prices enticing value-focused buyers to act.

Turboprops and small jets lead the list of aircraft in demand with the latest Quarterly Market Report analysing both the value and maintenance exposure of 92 fixed-wing models and 1,881 aircraft listed for sale.

Other trends the 14-page Quarterly Market Report include:

• For sale fleet Asset Quality remains “Excellent”, while average Ask Price reaches yet another new record low.
• Ask versus final transaction value gap posted a marked improvement for all four aircraft groups with small jets posting the best/lowest differential at 8.0%.
• 90-Day Future Values are decreasing slower than Q2 values with large jet values expected to fall 56% slower in Q3.
• High quality assets trading have worsened the Maintenance Exposure by 1.9% over the past three months.
• Maintenance Exposure to Ask Price Ratio (“ETP Ratio”) did not improve during Q2, once again increasing the anticipated marketing time for many aircraft.

Tony Kioussis, president of Asset Insight said: “With record low ask prices and excellent maintenance quality, the pre-owned business aircraft market in Q2 2017 offers great deals for buyers that are motivated to purchase either business jets or turboprop aircraft. The available inventory, while posting a notably smaller pricing decline, signals that pricing is beginning to stabilize, while market demand for all categories of business jets and turboprops remains steady.”

Asset Insight’s proprietary Asset Grading System Process (AGSP) analysed the average maintenance condition of jet and turboprop aircraft listed for sale as of June 30, 2017, (Source: AMSTAT) to generate the AI2 Market Report.