Business Aircraft Resale Market Update - October 2016

AMSTAT releases latest Business Aircraft Resale Market Update Report showing slightly slower Business Jet resale transaction activity so far in 2016.

Tinton Falls, NJ – October 24, 2016: According to AMSTAT, the first three quarters of 2016 saw a slightly
lower percentage of the Business Jets and about the same percentage of Business Turbo‐Props turning
over as resale transactions versus the same period in 2015.

In the first three quarters of 2016, 7.1% of the global Business Jet fleet turned over. This percentage
was down versus 7.4% in the same period in 2015. By comparison, 5.8% of the Business Turbo‐Prop
fleet turned over versus 5.7% for the same period in 2015.

Resale Retail Transaction activity year to date was up for Heavy Jets with 5.9% of the fleet turning over
in the first 3 quarters of the year, compared to 5.5% for the same period in 2015. In contrast,
transaction activity for the Medium Jets resulted in 7.1% of the fleet turning over versus 8.2% for the
same period in 2015. For Light Jets and Turbo‐Props, Resale Retail Transaction activity was largely flat
for the first 3 quarters of the year compared to the same three quarter period in 2015 (7.8% versus 7.9%
and 5.8% versus 5.7% respectively).

The report also shows that business aircraft inventory levels continue to climb but with some evidence
of a recent plateauing in certain market segments. 10.8% of the Heavy Jet fleet is now for sale. This
percentage is up from 10.4% at the start of 2016. Over the last 24 months more of this inventory has
come from Newer Heavy Jets, with 10% of that fleet for sale today versus 8% in 2015. Today 11.6% of
the Medium Jets fleet is available for sale versus 11.2% at the start of the year. As with Heavy Jets, it is
the Newer Medium Jet models that are seeing their inventory increase the most. The Light Jet inventory
is currently 11.8% of the active fleet. This up since the start of the year but flat compared to the same
time last year. 8.5% of the Turbo‐Prop fleet is for sale, up since the start of 2016 but down from 8.7% a
year ago.

Average Asking Price trends have been a mixed bag so far in 2016. The Average Asking Price for a Heavy
Jets is $13.9M down 6.6% year over year. The increase in Heavy Jet Resale Retail Transactions so far in
2016 has not been enough to raise Average Asking Prices. The Average Asking Price for a Medium Jet is
$3.4M, down 7.8% from a year ago which is consistent with falling Resale Retail Transaction activity and
increasing inventory in this market segment. The Average Asking Price for Light Jets is $1.7M up 6.7%
versus a year ago and $1.4M for Turbo‐Props up 5.5% versus a year ago. These are curious trends given
that transaction activity and inventory levels are essentially flat in these markets.

For a full copy of the report go to:‐MUR‐1024‐2016.pdf

About AMSTAT, Inc.
AMSTAT is the leading provider of market research information and services to the corporate aviation industry. Founded in 1982, and based in Tinton Falls, NJ, AMSTAT introduced the concept of providing researched information to corporate aviation professionals.

AMSTAT’s mission is to provide timely, accurate, and objective market information to its customers. AMSTAT products and services provide aviation market and statistical information that generates revenue and delivers competitive advantage to brokers/dealers, finance companies, fractional providers, and suppliers of aircraft parts and services.

Andrew Young
New Jersey: (732) 530-6400 x147 / /