Utica, NY (Vocus/PRWEB) March 31, 2011
JETNET LLC, the leading provider of corporate aviation information, has released February 2011 results for the pre-owned business jet, business turboprop, and helicopter markets.
U.S. vs International Business Jets For Sale
Chart A, listed on the right, shows the percentage of domestic U.S. versus international Business Jets For Sale from 1990 to 2010. During the decade of the 1990s the ratio ranged from a high of 83/17 to a low of 66/34 and then increased again to 79/21 for much of the decade of the 00s. However, starting in 2008 this ratio declined rapidly over a two-year period, ending with a 67/33 ratio in 2010. In our view, this change in direction has had an impact on the stubbornly high For Sale inventory levels we witnessed throughout 2010.
Highlighted in Table A to the right, are the key worldwide trends across all aircraft market segments, comparing February 2011 to February 2010. Business Jet inventory percentage For Sale showed the largest change (down 1.4 points), to 14.4% from 15.8%. Both turbine and piston helicopter sectors were basically unchanged in percentage For Sale for February 2011 compared to 7% for the same period in 2010.
Business Jet Sale Transactions increased 17.2% YTD in February 2011 compared to the same period in 2010. Business turboprops also showed a positive change of 10.4%. Both helicopter categories saw large double-digit declines in sale transactions (down 31% for turbine and 28.5% for piston) YTD in February 2011 vs. 2010, in a further softening of asking prices across all sectors.
All pre-owned aircraft categories showed large decreases in average asking price percentages except piston helicopters, with an increase of 5.2%. The decreases in average asking price ranged from -26.9% for business jets to -14.5% for business turboprops and -19.2% for turbine helicopters.
Pre-Owned Business Jet and Business Turboprop Aircraft For Sale
The build-up in Business Jet For Sale inventory decreased to 2,586, or 14.4%, in February 2011 from 2,731, or 15.8%, in February 2010. The Business turboprop market continues to hover just under the 1,400 for sale inventory level, down to 10.7% in February 2011 from 11.1% in February 2010.
So we continue to witness stubbornly high levels of for-sale inventories as we remain in a buyer’s market, with business jets showing for-sale percentages greater than 10%. A seller’s market is when 10% or less of the pre-owned business jets are for sale.
Pre-Owned Business Jets For Sale and Full Sale Transactions
Table B to the right, shows the business jet results for February 2011 compared to February 2010. Inventory continues to decline with full sale transactions increasing by 26.3% for February 2011. This increase is a positive sign but unfortunately at much lower prices (down 28.6%).
In comparing the YTD figures for February 2011, asking prices remain soft (down 26.9%) and the length of time on the market, at 398 days, is about 2 months longer (54 more days) than in the comparable YTD period for February 2010.
Pre-Owned Business Turboprops For Sale and Full Sale Transactions
Table C, listed to the right, shows the business turboprop results for February 2011 compared to February 2010. The average asking price has declined by 3.7%, to an average of $1.357 million. Average Days on Market has been shortened by 99 days to 249 days. However, the good news is that the business turboprop market saw a large percentage change in February, increasing by 38%.
The YTD Full Sale Transactions figure for February 2011 saw an increase of 10.4% (and in fewer days on the market), but at a 14.5% decline in the average asking price.
Helicopter – Turbine (excludes civil Russian manufactured helicopters)
As seen in Table D to the right, the number of pre-owned turbine helicopters for sale in February 2011 of 7.0% (a buyer’s market) showed no change compared to February 2010. A buyer’s market in the helicopter world is when the percentage of helicopters for sale exceeds 5% of the fleet.
The number of pre-owned Full Sale Transactions for turbine helicopters declined by 31.3% YTD in February 2011 compared to 2010. Average Days on Market for turbine helicopters was 390 days, 46 days longer on the market than during the same period in 2010. However, the average asking price fell by 19.2% YTD in February 2011 compared to February 2010.
Helicopter – Piston (excludes Russian manufactured helicopters)
Table E to the right, shows that the number of pre-owned piston helicopters for sale in February 2011 was 635 helicopters, or nearly half the number of turbine helicopters. The percentage for sale of 7.0% in 2011 (a buyer’s market) was nearly the same as the 6.9% seen in February 2010.
The number of pre-owned Full Sale Transactions for piston helicopters decreased by 21% in February 2011 compared to February 2010. Average Days on Market for piston helicopters was 224 days, 63 days less in 2011 than in 2010. However, the average asking price for piston helicopters jumped by 14.8% in February 2011 compared to February 2010.
The YTD average asking price increase of 5.2% has resulted in 28.5% fewer Full Sale Transactions. However, the Average Days on Market has declined by 35 days.
The reality is the current business down cycle will last longer than the industry would like. The good news is that the business aircraft and helicopter markets are mostly on the right track.
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.