Expectations at the beginning of the year were cautiously positive for 2012 but with a warning label to “Open with Care” as there is still a strong need for both business and consumer confidence to improve.
Utica, NY (PRWEB) July 05, 2012
JETNET LLC, the leading provider of corporate aviation information, has released May 2012 and YTD 2012 results for the pre-owned business jet, business turboprop and helicopter markets.
Fleet For Sale percentages for all market sectors were down in the May 2011 to May 2012 comparisons. Business jet sale transactions was the only market segment to show an increase (5.0%) YTD in May 2012 compared to 2011, and business jets are selling in less time (45 fewer days) on the market. However, business turboprop, turbine and piston helicopters saw declines in sale transactions YTD at 2.4%, 14.6% and 13.8%, respectively.
The turbine helicopter market was the only segment to show an increase (9.7%) in average asking price in the YTD results, while the percentage change in sale transactions declined by 14.6%. In an analysis of year-to-year percentage change in averaging asking price compared to sale transactions, measuring YTD by month from January to present, sale transactions have declined at an average of 15% since January 2012. However, the average asking price reduction has not deterred this decline in pre-owned sale transactions.
US Economy (“third” estimate of the 1st Quarter 2012)
Real gross domestic product (GDP) has increased at an annual rate of 1.9% in the first quarter of 2012 (that is, from the fourth quarter of 2011 to the first quarter of 2012), according to the third estimate released by the Bureau of Economic Analysis (BEA). In the fourth quarter, real GDP increased 3.0%. This is the same trend seen in the first quarter of 2011 compared to the fourth quarter of 2010. Next month BEA will provide the first estimate of the second quarter 2012, and an improvement over the first quarter 2012 results would be welcome in the markets. As reported in previous analyses, whenever U.S. GDP growth is 3.0% or greater, business aviation does well.
Expectations for the remainder of 2012
2011 ends over three years since the economic downturn in late 2008. Expectations at the beginning of the year were cautiously positive for 2012 but with a warning label to “Open with Care” as there is still a strong need for both business and consumer confidence to improve. There is a slight upward trend in the business jet market, as a strong month of June and 2nd quarter ending results are anticipated. This optimism may be the result of lower fuel pricing, as it was inching up to another record fuel price level before turning downward.
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.