JETNET reports double digit growth of 15.7% in pre-owned business jet retail sales transactions.
Utica, NY (PRWEB) June 07, 2011
Last month, corporate aviation intelligence firm JETNET reported 1st quarter 2011 pre-owned market early-stage recovery signs. This trend continues as JETNET reports double digit growth of 15.7% in pre-owned business jet retail sales transactions in the first 4 months of 2011, along with a decline in average asking price. The health of the pre-owned market sets the stage for new aircraft orders.
New Business Aircraft Deliveries
In 1st quarter 2011 new business aircraft deliveries as reported by GAMA shows the total percentage decline of deliveries across all aircraft sectors is down by 5% and total billings are down by 20% (or $1.9 billion). New business jet deliveries were down by 22% in 1st quarter 2011 compared to 2010.
New piston aircraft deliveries improved by 13% in 1st quarter 2011 compared to 1st quarter 2010. This is very good news. This is the first time since 2007 that new piston aircraft deliveries in the first quarter have increased.
The U.S. Bureau of Economic Analysis (BEA) reported that real gross domestic product increased at an annual rate of 1.8 percent from 4th quarter 2010 to 1st quarter 2011, according to the “second” estimate. In the fourth quarter, real GDP increased 3.1 percent, historically a growth mode for the business aviation market. The current estimate of 1.8% is a concern.
Comparing April 2011 to April 2010 across all aircraft market segments, Business Jet inventory For Sale percentage showed the largest change (down 1.2 points), to 14.3% from 15.5%. The only sector to show an increase in for-sale inventory is the piston helicopter market, from 6.4% in April 2010 to 6.8% in April 2011. Business Jet Sale Transactions increased 15.7% in the first four months of 2011 compared to the same period in 2010. Business turboprops also showed an increase of 3.5%. Both helicopter categories saw double-digit declines in sale transactions (down 12.8% for turbine and 14.4% for piston) in the same period, a further softening of asking prices.
All Pre-owned aircraft categories showed large decreases in average asking price percentages except piston helicopters, which showed an increase of 4.2%. The decrease in average asking price ranged from -24.5% for business jets to -9.4% for business turboprops and -10.3% for turbine helicopters.
US Flight Operations—Domestic
U.S. Business Jet Domestic Flight Operations were 95,000 flights, or 25% below the peak level of 373,000 in October 2007 compared to 278,000 in April 2011. However, there has been an unsteady improvement from 225,000 flights in February 2009 to today, as reported by the FAA.
US Flight Operations—International
U.S. International Flight Operations reached 57,000 in April 2011. This result was up 8.8% from April 2010 at 52,000, and down from the record peak of 62,000 set in September 2010. However, the current April results have improved from 44,000 flights in January 2011. The low point was 40,000 flight operations in February 2009.
US JET A Fuel Prices
The 1st quarter 2011 U.S. Jet A Fuel Price of $6.05 per gallon is on the rise, up $.69 per gallon from $5.36 in 1st quarter 2010. Current prices are well below the 2008 fuel price bubble of $6.83 per gallon.
Since 1988, JETNET has delivered the most comprehensive and reliable business aircraft research to its exclusive clientele of aviation professionals worldwide. JETNET is the ultimate source for information and intelligence on the worldwide business aircraft fleet and marketplace, comprised of some 60,000 airframes. The company offers services for both fixed wing and helicopter aircraft. Headquartered in its state-of-the-art facility in Utica, NY, JETNET offers comprehensive user-friendly aircraft data via real-time internet access or regular updates.