The overall increase in prices is welcome news for the OEMs, some of which had to offer deep discounts to move unsold inventory.
Utica, NY (PRWEB) April 05, 2012
JETNET LLC, the leading provider of corporate aviation information, has released February 2012 statistics for the pre-owned business jet, business turboprop and helicopter markets.
Fleet For Sale percentages for all market sectors were down in the February year-to-year comparisons. Business turboprops came in well below the 10% mark, clearly moving it into a seller’s market.
Business jet sale transactions increased 7.7% YTD ending February 2012 compared to 2011. Business turboprops decreased 8.7%. Turbine and piston helicopters YTD sale transactions declined, at 15.5% and 18.6%, respectively.
The business jet market sector was the only one to show a decline (82 days) in average days on the market YTD ending February 2012 compared to 2011. The remaining market sectors took more days to sell. The business turboprop and piston helicopter market sectors took more than 2 months on average to sell.
Pre-owned aircraft categories showed increases in average asking price percentages in the YTD February 2012 comparisons to 2011. Both business turboprops and turbine helicopters continued to show increases in average asking price, 19.1% and 38.7% respectively.
Business jets showed a 7.7% increase in pre-owned sales transactions in 2012, and sold in less time than last year, with a 3% increase in average asking price. Other market sectors are not showing similar results. Pre-owned turboprops and helicopters entered the new year with pronounced decreases in sale transactions, spending weeks—if not months—more time on market to sell, all while average asking prices are on a sharp increase.
Where the close of 2011 was marked by a distinct, albeit brief, spike of activity (prices decreased and sales increased), market performance in the first quarter of 2012 was flat.
A similar view of business turboprops shows a steady growth in pre-owned sales transactions and a flat line in average asking price over the past several months. This is a much different picture than January and February 2012, where sale transactions were decreasing while average asking prices were increasing at double-digit rates. The overall increase in prices is welcome news for the OEMs, some of which had to offer deep discounts to move unsold inventory. It’s not the first increase in prices since the downturn. There were temporary upticks early last year, though JETNET cautions that one or two months do not make a trend. A number of factors could play into the price increases, including the mix of models sold. However, this is an indicator that a correction is still in the works as 2012 continues to unfold.
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, commercial, and helicopter aircraft fleet and marketplace, comprised of some 100,000 airframes. 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.