Aero Asset 2020 Heli Market Trends Report

NAFA member, Aero Asset, shares key findings from their latest Heli Market Trends 2020 report.

2020 HELI MARKET ROLLER COASTER RIDE

As COVID ramped up through Q2 2020, preowned twin engine helicopter retail sales volume dropped by half. The market went into hypotension, but a strong recovery was just around the corner.
Markets showed incredible resilience Q3 & Q4 with retail sales (# units) on par YOY.
Overall, 2020 preowned retail sales volume (# units) rose 10% YOY and 2020 saw the most retail transactions in the last four years.
Following a sharp rise in the number of units available for sale over the last two quarters of 2020, supply for sale (# units) rose 8% YOY.
The overall absorption rate (across all models & asset classes) remains constant YOY with 20.5 months of supply at 2020 trading levels vs. 21 months in 2019.

WEIGHT CLASS RESILIENCE

With the Sikorsky S-92 and Airbus H225 markets both performing strongly YOY, the heavy weight class market saw the biggest rise in transaction volume of all weight classes last year and nearly twice as many retail transactions YOY.
Heavy’s represented 12% of all units sold in 2020 and 20% of the aggregate transacted value.
The Leonardo AW139’s was the best performing medium twin market in 2020, representing 40% of all medium transactions (# unit). Medium twin’s accounted for 30% of all units sold and nearly 40% of the total transaction value (all models/weight classes).
The Bell 429 saw the strongest increase in light twin sales YOY and represented 15% of all light twin sales (#units) in 2020. The light twin market was stable YOY representing 58% of all units sold last year.

2021 TREND

After four consecutive quarters of decline, the deal pipeline which tracks the number of preowned twin engine helicopter deals pending at various stages of transaction, saw a rise in the amount of deals pending Q4 2020. It is the writer’s opinion that the resilience noted Q3 & Q4 2020 will continue Q1 2021.