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Light Twin Sales Lift Pre-owned Helicopter Market

Light Twin Sales Lift Pre-owned Helicopter Market

NAFA member, Aero Asset, shares the latest on the pre-owned helicopter market.

Retail trades of preowned helicopters were up 9 percent across all helicopter configurations and weight classes last year, with the light-twin market leading that increase, according to the inaugural Preowned Helicopter Market Trends report released by newly established Aero Asset.

Co-founders Emmanuel Dupuy, William Strum, and Valerie Pereira announced the formation of Aero Asset, a new global helicopter brokerage, this week at Heli-Expo 2019. All are experienced helicopter sales specialists who formerly worked for Avpro. Dupuy and Strum are leading sales at Aero Asset, while Pereira, a specialist in aircraft market research, is the director of business development and research.

“We believe the time is right for an independent, advisory-focused helicopter brokerage,” Dupuy explained. “The preowned market took an upturn in 2018, after several years of flatlining, and we look forward to the trend continuing on an upward curve.” 

At the same time, the Aero Asset executives released the Preowned Helicopter Market Trends Report for 2018. Based on the firm’s proprietary intelligence and knowledge of the market, the report focuses exclusively on the twin-engine preowned helicopter markets, ranking the best and worst markets in 2018. It also provides analyses of 15 twin-engine helicopter models in the light, medium, and heavy categories, from the Airbus H135 to the Sikorsky S-92A.

For instance, the report finds the sales for the Bell 429 fleet up 30 percent in 2018 and the supply was down 20 percent, with a retail trading range of $4 million to $5 million. The report called the 429 the sixth most liquid twin in the preowned helicopter market. And it noted that the Leonardo AW139 fleet experienced a 350 percent leap in sales volume, while the supply at 30 units, is up 20 percent year-over-year. Meanwhile, the report is calling the EC225/H225 volume "opaque" and "cloudy," finding a retail trading range of between $1.5 million and $8 million.

Overall, the report detailed 90 sales of light twin helicopters last year, a 13 percent increase, while 44 medium helicopters traded hands, unchanged from 2017. In the heavy market, three helicopters were tracked as sold in 2018.

Preowned twin-engine helicopter prices range from sub-$1 million at the very bottom—the Airbus H155/EC155B1 and Leonardo A109E Power—to more than $12 million for the top end marked by the Sikorsky S-76D. Absorption rate—the amount of time it would take to deplete inventory at current sales levels—varied from 1.6 years for light helicopters to 2.8 years for mediums to five years for heavy. This rate was lower year-over-year by double digits across all weight classes, with that for the medium helicopter category down 48 percent, from 4.1 years in 2017.

“Brokers and dealers cultivate a short view of the markets, leveraged by intel from past deals and best buys available for sale,” said Dupuy. "This data is very refined. This report aggregates 2018 helicopter trading intel and compares it with the previous year and leverages key comparative indicators.” 

Toronto-based Aero Asset plans to publish its market report quarterly going forward.

Click here to download the Q1 2019 Preowned Heli Market Trends Report.

This article was originally published by R. Randall Padfield on AINonline on March 6, 2019.

 


 August 15, 2019