Expectations are cautiously positive for 2012, but there is still a strong need for both business and consumer confidence to improve.
Utica, NY (PRWEB) February 02, 2012
Market Summary – Business Jets and Business Turboprops
Pre-owned business aircraft inventories continued to decline in December, but asking prices—especially for jets—are still dropping. Business jet inventory in December stood at 13.8% of the in-service fleet, down 1.0% from a year ago. For the year 2011, jet sale transactions increased by 7.0%. However, average asking price fell 13.8% to $4.64 million in the same time frame, and average days on the market increased by 20 days to 383.
The turboprop market appears to be improving. Inventory of pre-owned turboprops settled at 9.6% in December, down from 10.6% the previous year. Turboprop sale transactions rose by 13.4% in 2011 compared with the same period the previous year, while the number of days on market decreased by 6 days to 331. Average Asking price was the only negative in the turboprop segment, though it fell by only 3.5% to $1.309 million versus a year ago.
Market Summary – Turbine and Piston Helicopters
Turbine and Piston Helicopter Full Sale Transactions have declined by 11.9% and 17.7% respectively, in 2011 versus 2010. The percentages of the Turbine and Piston helicopter fleets For Sale in December 2011 were both below 7%.
$1 million separates the average asking prices for Turbine helicopters and Piston helicopters, at $1.29 million and $226,000 respectively. While the average asking price for turbine helicopters is declining, the piston helicopter average asking price has increased by 9.3%. This is the only pre-owned market sector to show an increase in average asking price.
US Economy (“advance” estimate of the 4th Quarter 2011)
Real gross domestic product (GDP)—the output of goods and services produced by labor and property located in the United States—increased at an annual rate of 2.8% in the 4th quarter of 2011 (that is, from the 3rd quarter to the 4th quarter), according to the “advance” estimate released by the Bureau of Economic Analysis (BEA). In the 3rd quarter, real GDP increased 1.8%.
A GDP percentage change of 3% or more is always positive for business aviation. While the rate of 2.8% in the 4th quarter is below 3.0%, it provides some positive news.
Expectations for 2012
The end of 2011 marks over three years since the economic downturn in late 2008. Expectations are cautiously positive for 2012, but there is still a strong need for both business and consumer confidence to improve.
For more than 20 years, JETNET has delivered the most comprehensive and reliable business and commercial aircraft research to its exclusive clientele of aviation professionals worldwide. In 2004, JETNET acquired Aviation Data Services, Inc. (AvData), founded in October 1966. JETNET is the ultimate source for fleet and marketplace information and intelligence. The company offers services for aviation professionals over the full spectrum of business and commercial aviation, including business jets and turboprops; fixed wing and helicopter aircraft; and commercial airliners; as well as management and networking tools for business aviation professionals and executives. Headquartered in its state-of-the-art facility in Utica, NY, JETNET provides multichannel access to real-time, user friendly, comprehensive aircraft data.