Shift to sellers market expected as business aircraft demand and asking prices increase
According to Asset Insight’s quarterly Market Report (AI2 Market Report), industry indicators are leaning toward a “neutral” to “sellers” market for younger, lower-time aircraft.
The 2Q 2018 AI2 Market Report analyzes values for every production year of every modern make and model Business Class aircraft, while the Report’s maintenance analytics cover 93 fixed-wing models and 1,599 aircraft listed for sale.
Other trends detailed in the 2Q 2018 Market Report include:
• Large Jets and Turboprops increased Average Ask Price through mid-year.
• Ask vs. final Transaction Value gap narrowed (improved) across all categories.
• Demand increased across all categories, except Turboprops.
• The “For Sale” fleet earned a “Very Good” Asset Quality Rating; Large and Medium jet Quality Rating improved while Small Jets and Turboprops declined.
“We’re seeing demand and Ask Price increases for younger, low-time aircraft, especially within the Large and Medium jet sectors,” said Tony Kioussis, president of Asset Insight, LLC. “As the Asset Insight system predicted, Ask Price decreases have slowed considerably for many models, and our forecast is that price decreases will continue to slow through 3Q. However, owners of older aircraft, especially those not already ADS-B compliant, will continue to struggle and meet increasingly difficult selling conditions from higher quality assets as time goes on.”
Exclusively available from Asset Insight, the AI2 Market Report includes eTrendTM, a 90-day forecast for aircraft value by make and model. This tool is especially helpful to sellers who are evaluating offers on their aircraft while concurrently considering if their prospects are likely to improve.
Statistically, Asset Insight’s eTrendTM forecasts are based on some of the most robust data analytics in the industry and have been thoroughly back-tested to confirm a significant degree of accuracy.