AMSTAT Quarterly Report Webinar 2021 - Heavy Demand & Tightening Resale Markets Put Manufacturers In The Left SeatNAFA member, AMSTAT, shares their latest Quarterly Report Webinar. see more
NAFA member, AMSTAT, shares their latest Quarterly Report Webinar.
Watch the latest business aircraft resale market quarterly update from AMSTAT, General Aviation Services, and Bloomberg Intelligence.
Content includes insights into:
- Business aircraft segment value trends.
- Resale transaction activity, resale inventory analysis and charter and fractional aircraft utilization.
- Economic analysis with context for business aviation.
This webinar was published by AMSTAT on September 9, 2021.
Market Insights: Don Spieth, General Aviation Services see more
NAFA member, Don Spieth, General Aviation Services, shares the latest trends and indicators of note in the pre-owned business airplane marketplace? AvBuyer’s Matt Harris spoke with Don Spieth at General Aviation Services to ask for his market perspectives.
Having been trading for more than 50 years, the company has amassed a wealth of expertise, and today specializes in all turbine-engine markets from turboprops all the way up to Large Jets. In a typical year, the General Aviation Services team can expect to buy and broker anywhere between $20m to $50m in aircraft assets, depending on how the economy is performing.
The General Aviation Services team consists of sales professionals and market researchers who offer expertise in specific markets, “but we work together to keep everyone informed, to better serve our customers,” Don Spieth tells AvBuyer.
“Our client base consists of High Net Worth Individuals with one aircraft, and also Corporate Aviation flight departments responsible for a larger fleet of aircraft.”
Don’s own career began in energy services and power generation, including gas reciprocating engines, turbines, and aero derivatives.
Then, almost 10 years ago, he joined the Van Buren Advisors team, an analytics firm that specializes in quantitative analysis in the financial industry.
“We partnered with General Aviation Services and AMSTAT to create an Aircraft Valuation tool to predict aircraft values by analysing historical business jet transaction data, and the macroeconomic influences that impact aircraft values,” he recalls.
This article was originally published in AvBuyer on August 3, 2021.
Global Jet Capital's Business Aviation Market Brief see more
NAFA member, Global Jet Capital, shares their recent Business Aviation Market Brief, including data through July 2021.
The business aviation market demonstrated remarkable resilience in 2020 and continued to build on that strength in the first 7 months of 2021. Through July YTD, flight operations and pre-owned transactions were up, demonstrating continued demand for the capabilities that business jets provide. As the global economy grows, renewed business activity will continue to drive transactions in the business aviation market.
- Lifting travel restrictions and liquidity built up during the pandemic led to economic growth in Q2 2021.
- Driven by the entry of new users into the market, business jet flights grew through July 2021. While comparisons to 2020 can be misleading due to lockdowns during that time, flight activity increased nearly 1 percent when compared to 2019.
- Backlogs rose at major OEMs, driven by new users to the business jet market, low pre-owned inventory, and strong demand from fleet operators.
- Overall transaction activity continues to recover from 2020 levels, driven largely by the pre-owned market.
- Inventory levels continued to decline through July 2021 and remained at historically low levels.
- Limited supply and continued demand have given business jet sellers additional bargaining power, resulting in bluebook values firming up and even appreciating in some instances.
Record High Demand in Q3 2021 Drives Availability to Record Low as Textbook Economic Rules Return to the Bizjet MarketplaceRecord High Demand in Q3 2021 Drives Availability to Record Low as Textbook Economic Rules Return to see more
NAFA member, Tony Kioussis, Asset Insight, shares their Q3 2021 Market Report.
The fever pace of business aircraft sales in 2021 is clearly reflected in the Asset Insight Q3 AI2 2021 Market Report. Demand in Q3, at 68% over Q2 2021, was at a record high level for all aircraft groups. Sales volume in Q3 increased just 1.5% over Q2, but was up 18% through Q3 2021 vs. Q3 2020. The Q3 AI2 Market Report covers 134 fixed-wing models and 1,190 aircraft listed for sale.
“In our last Market Report, the laws of supply and demand seemed to have been paused with demand increasing for a smaller and smaller pool of aircraft, while prices continued to fall,” said Tony Kioussis, president of Asset Insight, LLC. “Traditional economic forces appear to have regained their footing as the selling frenzy continues to reduce the fleet of available aircraft, and in Q3 prices began to rise. It’s more important than ever, however, that buyers have clear and accurate data about the aircraft they’re considering as the quality of the for-sale fleet has been picked over with available aircraft often carrying the promise of higher future maintenance costs.”
This article was originally published by Asset Insight on October 29, 2021.
NAFA member, Aero Asset, shares their latest Heli Market Trends report and Key Findings. see more
NAFA member, Aero Asset, shares their latest Heli Market Trends report and Key Findings.
Heli Market Trends compiles YTD 2021 performance of 13 twin engine models in the light, medium and heavy weight categories, from Airbus Helicopters H135 to Sikorsky S92. Market performance is ranked from most to least active.
TRANSACTION VOLUME IS STABLE Q3, SUPPLY SHRINKS
- Total YTD retail sales stable vs same period 2020 (YOY).
- Supply for sale 24% lower year over year (YOY).
- Deal pipeline increased 24% YOY, but decreased vs. Q2 2021.
WEIGHT CLASS PERFORMANCE
- YTD Light twin engine retail sales volume increased 5% vs. same period 2020.
- YTD Medium retail sales up nearly 45% vs same period 2020.
- Heavy retail sales declined substantially over same period.
REGIONS & CONFIGS
- After trailing Europe in 2020, North America leads the pack in transaction volume YTD.
- North American sales accounted for over 1/3rd of total transactions YTD.
- YTD VIP configured twin helicopter sales volume rose 8% YOY, and EMS declined 40% over same period.
- The most liquid preowned market YTD was the Airbus EC/H145, followed by the Leonardo AW109S/SP and the Sikorsky S-76C+/C++.
- The biggest drop YOY was the Bell 412EP, with a current absorption rate of 17 years.
- 2 of 13 markets in the lineup saw no preowned trades YTD.
DEAL PIPELINE COOL DOWN
- The number of deals pending at various stages of transaction declined 24% Q3 vs. Q2.
- However, the number of deals pending in the pipeline remained 23% higher this quarter vs Q3 2020.
- The number of worldwide helicopter flights experienced a sharp rebound Q1 2021 and YTD.
- North America saw 256 126 helicopter flights Q3 2021, a 36% increase YOY.
- Europe saw 192 976 helicopter flights Q3, a 23% increase YOY.
This report was originally published by Aero Asset in October 2021.
GAMA Publishes Second Quarter 2021 Aircraft Shipments and Billings Report see more
NAFA member, GAMA, releases its Second Quarter 2021 Aircraft Shipments and Billings Report.
WASHINGTON, D.C. – Today, the General Aviation Manufacturers Association (GAMA) released its report of general aviation aircraft shipments and billings through the second quarter of 2021. Piston, turboprop, business jet and helicopter deliveries increased across all segments during the first six months of 2021 as compared to the same period of 2020.
“Through the first six months of 2021, we can see that the industry continues to progress in its recovery efforts. While it is encouraging to see segments improve from 2020, we still trail when compared to how the industry was faring before the onset of the pandemic. Efforts to address ongoing supply chain issues, strengthen our workforce and enhance environmental sustainability will continue to be at the forefront as interest and demand for aircraft remains robust,” said GAMA President and CEO Pete Bunce.
This press release was originally published by GAMA on September 1, 2021.
Used Aircraft Maintenance & Marketability Analysis – July 2021 see more
The last time Asset Insight’s tracked inventory fleet experienced a decrease was 13 months ago. Meanwhile, average Ask Price decreased another 0.8% in July. Which business jet and turboprop models were impacted the most? NAFA member and Asset Insight's President and CEO, Tony Kioussis explores.
Asset Insight’s July 30th, 2021 market analysis covering 134 fixed-wing models revealed another 5.5% decline in availability, with all four groups contributing. Our pool of 134 tracked models totaled 1,345 aircraft, representing a year-to-date (YTD) decrease of 29.7% (567 units), and a 42.3% year-over-year (YoY) decline.
The Quality Rating for listed assets continued to decrease, as buyers continue to demonstrate a preference for higher quality aircraft, with the Rating dropping 0.3% to post a 12-month low (worst) figure at 5.265.
July’s Quality Rating kept the fleet within the ‘Excellent’ range, on Asset Insight’s scale of -2.5 to 10, but signaled that aircraft within the inventory would require more near-term maintenance to be completed.
This report was originally published by AvBuyer on August 19, 2021.
NAFA member, David Dixon with Jetcraft Asia, discusses ownership trends in the Asia Market. see more
NAFA member, David Dixon with Jetcraft Asia, discusses ownership trends in the Asia Market.
There has been much talk about the changing face of the first-time business aviation users, post-Covid-19, with clear evidence of mounting demand for private aircraft at all levels, whether via charter, card membership, fractional or outright aircraft ownership.
This had led to significant industry growth in the USA and Australia, where, due to the vast landscape, a four- or five-hour flight remains within the same domestic borders. The experience in Asia Pacific (APAC), and its key commercial locations of Hong Kong and Singapore, is different. Take off from Hong Kong and in five minutes you cross into China and Taiwan. Depart Singapore and 60 seconds later you can be in Malaysia or Indonesia. However, with many Covid-19 lockdown and quarantine requirements still in place throughout the region, such cross-border travel is difficult.
This article was originally published by Jetcraft on July 2, 2021.
LEAS' Joseph Carfagna, Jr. discusses the aviation market with Tim Kern of Business Air. see more
NAFA member Joseph Carfagna, Jr., President of Leading Edge Aviation Solutions (LEAS), discusses the aviation market with Tim Kern of Business Air.
Joe Carfagna Jr., President of Leading Edge Aviation Solutions (LEAS) that was founded by his father, says, “After over 50 years in the industry, we thought we had seen it all. Apparently, not so.”
2020 was, by all counts, an unusual – no, make that, “unique” – year, a year no one could have predicted. Instant changes in protocols, policy implementation and reversals… not just within the USA, but worldwide. Everything seemed to change overnight, and then change again in a week or a month. Only by being quick on its feet and understanding its clients, products, industry, and financing could anyone stay on top of things. A startup would be over before it got out of the gate. Only a strong network and a grip on the fundamentals and the people involved could offer a chance at survival, or a shot at expanding market share. All quotes are from Joe Carfagna Jr.
“We had an extremely busy end to 2020, and I’d say around the beginning of November, the market started to heat up again, and corporate airplanes are building an ‘asset bubble,’ like we’re seeing in real estate. So, sellers are seeing good times.”
This article was originally published by Business Air.
NAFA member Aero Asset releases key findings from their latest Q2 2021 Heli Market Trends report. see more
NAFA member Aero Asset releases their latest Heli Market Trends report for Q2 2021.
HELI MARKET TRENDS Q2 2021
TRANSACTION VOLUME PROGRESSES Q2, SUPPLY SHRINKS
- Total Q1/Q2 retail sales increased 15% vs same period 2020
- Supply for sale continued decrease, 10% lower year over year
- Deal pipeline declined Q2 after 2 consecutive quarters of growth
WEIGHT CLASS PERFORMANCE
- Total Q1/Q2 Light twin engine retail sales volume increased nearly 40% vs same period 2020
- Total Q1/Q2 Medium retail sales increased 25% vs same period 2020
- Heavy retail sales slumped in the first two quarters
REGIONS & CONFIGS
- After trailing behind Europe last year, North America leads the pack in transaction volume accounting for almost half of all transactions YTD
- Total Q1/Q2 VIP sales volume rose 40% YOY, the strongest increase across all segments
- The most liquid preowned market YTD was the Leonardo AW109S/SP, closely followed by the EC/H145.
- 2 of 13 markets in the lineup saw no preowned trades YTD
DEAL PIPELINE COOL DOWN
- After 2 consecutive quarters of growth in the number of deals pending at various stages of transaction, the deal pipeline declined 35% Q2 vs. Q1
- However, the number of deals pending in the deal pipeline were up 15% YTD vs, same period 2020
Full Heli Market Trends report available at
This report was originally published by Aero Asset in July 2021.
Asset Insight releases their Used Aircraft Maintenance & Marketability Analysis for June 2021. see more
Inventory has steadily decreased over the past year and, during June, the average Ask Price for Asset Insight’s tracked fleet actually decreased 1.8%. Not all models experienced a value loss, though. Which aircraft were impacted the most? NAFA member Tony Kioussis, President and CEO of Asset Insight explores.
Asset Insight’s June 30th, 2021 market analysis covering 134 fixed-wing models revealed a 5.0% inventory contraction, equating to a year-to-date (YTD) decrease of 24.2%, as well as a 38.6% Year-over-Year (YoY) reduction. All four groups were involved.
The picked-over inventory’s Quality Rating improved for the first time in four months, rising 0.2% to 5.282, helping keep the available fleet well within the ‘Excellent’ range on Asset Insight’s scale of -2.5 to 10.
The Quality figure’s increase signifies inventory assets will require slightly fewer near-term maintenance events to be completed.
June’s Aircraft Value Trends
The average Ask Price for Asset Insight’s tracked fleet decreased 1.8% in June to about the 12-month average, fueled by the three jet groups. Q2, and YTD figures were higher (2.2% and 0.7%, respectively), while YoY Ask Prices posted a minor 0.2% increase.
This article was originally published by AvBuyer on July 15, 2021.
William Sturm, VP of Sales/Co-owner for Aero Asset, reviews the status of the helicopter market. see more
NAFA member, William Sturm, Vice President of Sales for Aero Asset, and a co-owner of the firm, talks with fellow NAFA member Tony Kioussis, President and CEO of Asset Insight, and reviews how the helicopter market withstood the pandemic, and where things might be headed the remainder of 2021. Subjects covered include:
- How the helicopter market weathered 2019 and 2020.
- Market conditions during the early months of 2021.
- Models actively trading.
- The drivers behind helicopter purchases, historically and today.
- Is the market experiencing more first-time buyers?
- Pre-owned inventory availability.
- Predictions for the second-half of 2021.
This podcast was originally published by Asset Insight in June 2021.
NAFA member Global Jet Capital releases its first Business Aviation Market Forecast. see more
With the release of its first-ever Business Aviation Market Forecast, NAFA member Global Jet Capital joins the ranks of only a few organizations that release a forecast of both the new and pre-owned markets. The forecast projects there will be 3,610 new deliveries between 2021 and 2025, worth $89.2 billion. During the same period, there will be 13,945 pre-owned transactions, worth $72.9 billion. The combined market is forecast to consist of 17,555 transactions, worth $162.1 billion.
The business jet industry demonstrated resilience during the COVID-19 pandemic and related disruptions in 2020. As such, the market is poised to grow, with new deliveries increasing at an annualized rate of 5.5 percent between 2020 and 2025. Pre-owned transactions will grow at an annualized rate of 2.9 percent during the same time. Growth will be driven by increasing economic activity, the introduction of new models, and routine replacement and trade-up patterns.
This report was originally published by Global Jet Capital on June 22, 2021.
Asset Insight's Tony Kioussis shares his market update on Bombardier Challenger Jets. see more
Are you thinking of buying or selling a pre-owned Bombardier Challenger business jet? Matt Harris asks NAFA Member Asset Insight’s Tony Kioussis for his perspectives on how these popular Super Mid-Size and Large Jets are performing on today’s market.
Generally speaking, buyers in today’s business jet marketplace will note a tight supply of available aircraft, although just how tight could partially depend on the age and pedigree of aircraft you’re willing to consider.
For example, a glance at the Bombardier Challenger series, which has been in production for approximately 40 years since the original Challenger 600 was certified, provides a perfect snapshot.
According to data from Asset Insight, buyers seeking a newer, in-production Challenger model, such as the Bombardier Challenger 650 Large Jet or Challenger 350 Super Mid-Size Jet, will find just 2.7% and 1.4% of the respective fleets for sale (as of March 2021).
Those who are prepared to shop for something a little older will find a slightly larger pool of candidate aircraft in the Challenger 600 family (less so for shoppers of Challenger 300 jets, where a minuscule 3.8% of the fleet was for sale).
For a 6-14 year-old Challenger 605, or a 14+ year-old Challenger 604, 6.9% and 7.7% of the respective fleets were up for sale at the time of writing. Notably, these figures still represent a sellers’ market by traditional standards.
It’s when you delve into the older Challenger 601 markets that buyers will find a more ready supply of inventory, with 12.5% of the Challenger 601-3R fleet listed for sale.
This article was originally published by AvBuyer on April 30, 2021.
Used Aircraft Maintenance & Marketability Analysis – May 2021 see more
NAFA member, Tony Kioussus, President & CEO of Asset Insight, LLC, shares the latest Used Aircraft Maintenance & Marketability Analysis for May 2021.
For the eleventh consecutive month, strong sales activity and limited new listings decreased availability of inventory on the pre-owned market. The average Ask Price for Asset Insight’s tracked fleet increased 4.1%. Which business aircraft were impacted the most? Tony Kioussis explores.
Asset Insight’s tracked inventory fleet contracted by another 4.6% last month, while the May 28, 2021 market analysis covering 134 fixed-wing models revealed 1,546 aircraft listed for sale, equating to a year-to-date (YTD) decrease of 19.1% for the tracked fleet.
The latest inventory’s Quality Rating decreased another 0.5% to 5.271, keeping the fleet within the ‘Excellent’ range, on Asset Insight’s scale of -2.5 to 10. Nevertheless, the lower number signifies the assets available will have to complete more near-term maintenance events.
May’s Aircraft Value Trends
Average Ask Price for Asset Insight’s tracked fleet increased 4.1% during May, equating to a 2.5% rise YTD, and a 4.2% gain year-over-year (YoY).
- Large Jets registered a 12-month high Ask Price with a 5.2% increase. The group’s average price ended May 5.4% higher YTD, and 5.8% higher YoY.
- Mid-Size Jet pricing increased 4.6%, but the figure was still 5.0% lower YTD, and 9.6% lower YoY.
- Light Jet average Ask Price rose 6.4% for the month, but was 8.3% lower YTD, and 11.8% lower YoY.
- Turboprop Ask Prices fell an insignificant 0.1%, leaving the group’s figure unchanged YTD and 2.0% higher YoY.
May’s Fleet for Sale Trends
Asset Insight’s tracked fleet posted an inventory decrease for the eleventh consecutive month, with May’s reduction equating to 87 aircraft. The tracked fleet has now contracted by 366 units YTD, equating to a 34.5% contraction since the June 2020 peak inventory month. Group inventory decreased as follows:
- Large Jets: Inventory decreased 5.9% (-23 units) and is down 14.6% YTD (-63 aircraft).
- Mid-Size Jets: Posted a decrease of 6.9% (-36 units), and YTD availability has fallen by 23.0% (-120 aircraft).
- Light Jets: Availability decreased an additional 1.8% (-10 units), reducing inventory by 21.5% YTD (-119 aircraft).
- Turboprops: The ‘for sale’ fleet decreased by 4.4% (-18 units), with 64 fewer aircraft available YTD (a 15.7% reduction).
May’s Maintenance Exposure Trends
Defined as the aircraft’s accumulated/embedded maintenance expense, Maintenance Exposure worsened (increased) by 2.0% to $1.515m for the month, setting a 12-month high (worst) figure.
What does this mean for inventory aircraft? As mentioned earlier, while available assets will, on average, experience more near-term maintenance events by virtue of the lower Quality Rating, the overall cost to complete those events is predicted to be higher. By individual group, Maintenance Exposure results varied.
- Large Jets: Worsened/Increased 2.2% to post the group’s 12-month worst (highest) figure that was also 4.9% higher/worse YoY.
- Mid-Size Jets: Decreased 1.0% to post the group’s second consecutive 12-month low/best value, while also improving/decreasing 2.6% YoY.
- Light Jets: Increased/Worsened a substantive 7.8% for the month, a figure that was 22.4% higher/worse YoY.
- Turboprops: Increased/worsened by 0.5% to post the group’s 12-month high/worst value, and that figure was 1.8% worse/higher YoY.
May’s ETP Ratio Trend
Asset Insight’s inventory fleet’s ETP Ratio, which has been rising steadily this year, rose/worsened to another all-time high 76.3%, compared to April’s 75%.
The ETP Ratio calculates an aircraft's Maintenance Exposure as it relates to the Ask Price. This is achieved by dividing an aircraft's Maintenance Exposure (the financial liability accrued with respect to future scheduled maintenance events) by the aircraft's Ask Price.
As the ETP Ratio decreases, the asset's value increases in relation to its price. ‘Days on Market’ analysis has shown that when the ETP Ratio is greater than 40%, a listed aircraft’s Days on the Market increases, in many cases by more than 30%.
This report was originally published by AvBuyer on June 17, 2021.