Used Aircraft Maintenance & Marketability Analysis – October 2022 see more
New month, same market trends! The used aircraft inventory increased for a seventh consecutive month during October, while the average Ask Price posted a 12-month high figure. Which models were affected the most? NAFA member and Asset Insight President and CEO Tony Kioussis explores…
With a 10.4% increase (92 aircraft), Asset Insight’s tracked 134-model fleet posted its seventh consecutive monthly inventory rise, with all four groups reflecting the availability increase.
Year-to-Date (YTD), October’s listings were 10.1% higher (89 units), but remained 42.1% lower than the June 2020 peak. The active fleet’s overall availability has now risen to 4.3%, compared to the October 2021 figure of 5.7%.
At 5.323, the Quality Rating posted its best (highest) figure since April’s 5.347 12-month high, and represented a 0.4% improvement over September’s 5.303, on Asset Insight’s scale of -2.5 (low) to 10 (high).
The Rating pushed listed aircraft further into the ‘Excellent’ range, was 2.4% better/higher YoY, and signaled fewer maintenance events due in the near-term.
October’s Pre-Owned Aircraft Value Trends
The tracked fleet’s average Ask Price increased for the sixth consecutive month, and the 11.5% increase was also the sixth consecutive 12-month high figure. In fact, it was just $11k shy of the all-time high figure. October’s increase equated to a rise of 57.9% Year-over-Year (YoY), and 79% YTD.
This report was originally published by AvBuyer on November 17, 2022.
NAFA member Aero Asset shares their 2022 Half Year Report Heli Market Trends - Twin Engine Edition. see more
NAFA member Aero Asset shares their 2022 Half Year Report Heli Market Trends - Twin Engine Edition.
Heli Market Trends compiles 2022 Half Year 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.
This report was published by Aero Asset on September 5, 2022.
Ever Forward: 2022-2026 Jetcraft’s 5-Year Pre-Owned Business Jet Market Forecast see more
NAFA member, Jetcraft, presents its annual pre-owned business jet Market Forecast exploring the persistent growth of business jet transactions throughout 2022 and how the market will continue to thrive over the coming five years.
The only forecast of its kind to focus solely on pre-owned business jets.
Ever Forward is our latest industry analysis offering a complete review of the pre-owned business jet market and assessment of buyer behavior to determine the number of transactions during the next five years and their associated value.
Drawing upon 60 years of industry leading knowledge and data-science, our approach recognizes the potential of untapped market opportunities, how the market will rationalize and where demand from the younger first-time buyer is living.
Our annual Market Forecast, Ever Forward: 2022-2026, is now available to view and download.
This forecast was originally published by Jetcraft in September 2022.
AMSTAT Q3 Business Aircraft Resale Market Update see more
For immediate release:
AMSTAT reports strong preowned Heavy and Super-Mid Jet transaction activity, low but increasing inventories and continued month-over-month value increases, albeit at a slowing rate.
Tinton Falls, NJ – October 14, 2022: AMSTAT, the leading provider of business aircraft market, fleet, and operator information for 40 years, has released its latest business aircraft market update webinar in conjunction with Bloomberg Intelligence and General Aviation Services.
The webinar data showed that at the upper end of the market preowned transaction, activity remains robust with final transaction counts in the Heavy Jet segment for the first three quarters of 2022 likely to match the same period in 2021, and transactions in the Super-Mid segment exceeding the same period in 2021 by 4%. In these same segments, inventories are up year-to-date but remain way below their 10-year average. Robust demand and low availability continue to push values up with the Heavy Jet median value up 19% YTD and the Super-Mid median value up 31% year-to-date.
Transaction activity in the Medium and Light Jet segments remains ahead of historical norms but is lower for the first three quarters of 2022 than the same period in 2021 by 18%. However, for comparison, the transaction count for the Medium Jet segment is 30% ahead of the same period in 2019 and 33% ahead for the Light Jet segment. As with the larger jets, the inventory levels in these segments are up but remain well below their 10-year averages. Lower transaction activity seems to have slowed the increases in median values in Q3 with minimal changes in this metric in these segments since July.
The preowned Turboprops market seems to have slowed. Transaction counts for the first three quarters are 13% lower than last year and 4% below 2019 levels. Inventory levels are up for turboprops but with 3.3% of the fleet for sale, these levels remain below their 7.2% 10-year average. Values in this segment continue to go up but at a shallower rate than before.
Overall, the ratio of pre-market and on-market transactions is changing. Traditionally this ratio is around 60/40 but went up to 80/20 in 2021. The data suggests a settling back of this metric to traditional levels in 2022.
The report also noted that flight activity from charter and fractional programs has stabilized after reaching highs in 2021, suggesting that new users of these services have largely remained. By comparison, activity from Part 91 flight departments continues to grow and now exceed 2019 levels. The report also evidenced data on forward builds for avionics sales as further support for strong airframe OEM backlogs.
At a macro level, GDP expectations for major economies are moving lower with consensus indicating a soft recession at the end of 2022, and into the first quarter of 2023 with sub 1% growth expected for 2023. This will likely have a more pronounced impact on the owner flown Light Jet and Turboprop segments.
To watch a video of the webinar and to access a copy of the slides, click on the following link: https://tinyurl.com/bdh3kbh3
AMSTAT will be demonstrating its services at NBAA-BACE, October 18-20, 2022, Orlando, FL in Booth #4051.
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.
AMSTAT Business Aviation Quarterly Report - October 2022 - "Back To The Future, Not Unusual Business"AMSTAT Business Aviation Quarterly Report -October 2022- "Back To The Future, Not Unusual Business" see more
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.
NAFA member, AeroAsset, shares their Heli Market Trends Half Year 2022 Report and Key Findings. see more
NAFA member, AeroAsset, shares their Heli Market Trends Half Year 2022 Report and Key Findings.
TRANSACTION VOLUME DOWN, SUPPLY SHRINKS
• Total retail sales decreased 17% 1st half of 2022 vs same period 2021 (YOY).
• Supply for sale was 30% lower year over year (YOY).
• Absorption rate was slightly better YOY and stable vs previous semester.
WEIGHT CLASS PERFORMANCE
• Supply for sale continued to decrease in all asset classes through 2022.
• Light & medium twin engine retail sales volume decreased nearly 20% YOY.
• Heavy retail sales increased over same period.
REGIONS & CONFIGS
• North American & European sales volume accounted for 75% of total transactions 1st half of 2022.
• Europe was the only region with a positive trend in transaction volume YOY (+4%).
• Sales volume of VIP and utility configurations decreased by 25% YOY while EMS sales increased YOY.
• The best performing preowned twin engine market in 1st half of 2022 was the Airbus EC/H145, followed by the Leonardo AW139 and the Airbus EC/H135.
• Two twin engine models saw no retail sales over the 1st half of 2022: the S-76D and AW169.
• The number of deals pending at various stages of transaction increased 20% 2Q 22 vs. 2Q 21.
Full Heli Market Trends report available at https://www.aeroasset.com/en/report-download/S12022-Twins
This report was originally published by AeroAsset in September 2022.
NAFA member, Aero Asset, shares their latest Heli Market Trends Report. see more
NAFA member, Aero Asset, shares their latest Heli Market Trends Report.
HELI MARKET TRENDS
2022 Half Year Report – Single Engine Edition
TRANSACTION VOLUME DOWN, SUPPLY SHRINKS
- Retail sales decreased 10% S1 2022 vs same period 2021 (YOY).
- Supply for sale was 65% lower year over year (YOY).
- Absorption rate decreased 63% YOY, to 3.5 months of supply at current trade levels.
ROBUST DEMAND FOR SINGLES IN NORTH AMERICA
- North American buyers accounted for 2/3rd of all transactions S1 2022.
- Retail transactions to Europe dropped 50% YOY.
- Europe accounts for 38% of supply for sale, North America 12%, LATAM 19% and APAC 17%.
MARKET PERFORMANCE BY CONFIGURATION
- VIP singles accounted for 60% of all transactions S1 2022. • EMS supply for sale dropped to historic lows.
- Utility supply for sale dropped 75% YOY.
- The most liquid preowned market during the 1st half of 2022 was the Airbus AS350 B3/B3e/H125, followed by the Bell 407/GX/P/I and the Airbus EC130 B4/H130. All three models boast only 3 months of supply at 1st semester trade levels.
- The least liquid preowned market during the 1st half of 2022 was the Leonardo AW119K/Ke/Kx, with an absorption rate of 10 months.
Full Heli Market Trends report available Click Here.
This report was originally published by Aero Asset on July 10, 2022.
Q1 2022 Pre-Owned Bizjet Demand Results in All-Time Low Inventory see more
Fueled in large part by first time buyers, the pre-owned business aircraft market set new records for demand during Q1 2022, resulting in just 3.1% of the active aircraft fleet available for sale, as of March 31, reports the Asset Insight AI2 Market Report. The Quality Rating of the for-sale fleet reached a 12-month high/best figure, signifying fewer near-term maintenance events and proving Maintenance Status is not directly related to aircraft age. However, Maintenance Exposure (the cost of embedded/accrued aircraft maintenance) approached a 12-month worst figure, signifying upcoming events for the listed fleet, while fewer in number, will be more expensive to complete. The Q1 2022 AI2 Market Report covers 134 fixed-wing models and 698 aircraft listed for sale.
As expected during a high-demand market, posted ask prices rose in Q1, up more than 14% year over year. Young, low-time aircraft continued to sell quickly, many without a formal listing, with sellers often generating final transaction values that met or exceeded their ask price.
“Two years ago, as we headed into the COVID-19 pandemic, nobody foresaw the frenetic buying environment we continue to experience. Twenty-four months later, the pre-owned business aircraft market has achieved record high transaction rates, and a record-low inventory level,” said NAFA member Tony Kioussis, President of Asset Insight, LLC. “Buyers are obtaining their ask prices, if not more, and owners of high-quality, low-time, recent model aircraft may not even have to list their asset to secure a sale.”
Download the complete Market Report covering Q1 2022, HERE.
This report was originally published by Asset Insight on April 13, 2022.
Preowned Business Jet Market Continues Feverish Pace see more
The preowned business aircraft market remains hot, with 288 transactions completed in the first quarter of 2022, according to a report from NAFA member International Aircraft Dealers Association (IADA). That's a 35 percent increase from the first quarter of last year when 213 transactions were completed, the association said.
“We live in tumultuous times," said IADA executive director Wayne Starling. "Despite that, the aviation field continues to show extraordinary strength. Global demand is very high.”
IADA members reported that acquisition agreements nearly doubled to 223 in the first quarter, up from 121 a year earlier. Prices dropped in only six cases, compared with 27 a year earlier. IADA reported that 45 deals fell apart in the quarter. Although that number was up from 41 in the first quarter of 2021, it was against the backdrop of an increase in the number of agreements.
The association’s members were retained exclusively to sell 155 aircraft in the quarter, down slightly from 157 a year earlier.
This article was originally published by Business Jet Traveler in April 2022.
Pete Bunce: A Promising Future for General Aviation see more
The General and Business Aviation industry has endured a great deal since the outset of the Covid-19 pandemic. We have faced numerous challenges and our resiliency has been tested, but the leading aircraft manufacturers actively managed their way through the past two years with a focus on the safety of employees, the growth of businesses and relations with customers. NAFA member, Pete Bunce, President and CEO of the General Aviation Manufacturers Association, discusses.
As we begin to come out of the pandemic, we are seeing that the Business Aviation industry is alive with new developments and a keen eye on the future.
The General Aviation Manufacturers Association’s 2021 General Aviation Aircraft Shipments and Billings Report, released in late February, showed that our industry is healthy and growing. The strength and tenacity of the General Aviation industry has provided a strong foundation for us to rebound from pandemic-related setbacks with a powerful showing in 2021.
Overall, when compared to 2020, all aircraft segments (piston airplanes, turboprops, business jets, piston helicopters and turbine helicopters) saw increases in shipments and preliminary aircraft deliveries were valued at $25.2bn, an increase of 10.2%.
Currently, total aircraft shipments are converging on figures that were seen before the outset of the pandemic.
This article was originally published by AvBuyer on April 14, 2022.
2022 Second Quarter Business Jet Model/Market Summary see more
NAFA member, Duncan Aviation releases their latest Business Jet Model/Market Summary.
When acquiring or upgrading a business aircraft, selecting the right make/model is one of your most important decisions. Duncan Aviation’s Aircraft Sales and Acquisitions team can help you narrow your selection with the use of a comprehensive and up-to-date Model/Market Summary.
The Model/Market Summary is sorted by the seats-full range for aircraft built in the last decade. It displays items including:
- Years Produced
- VREF Price Range
- Variable Cost / Hour
- Normal Cruise Speed
- Total Baggage Volume / Cabin Volume / Length / Height
- Cabin Seats
- Expected Avionics
- NBAA IFR Range-Seats Full
- NBAA IFR Range Ferry
- Payload with Fuel Full
- Average Fuel Burn
This summary was originally published by Duncan Aviation in May 2022.
Global Jet Capital Releases Annual Business Jet Market Forecast see more
Aimee Talbert Nardini, Global Jet Capital
Global Jet Capital Releases Annual Business Jet Market Forecast
Five-Year Worldwide Outlook for Growth Continues
Forecast Projects $186.8 Billion in Total Transaction Volume Over the Next 5 Years
Danbury, CT – May 22, 2022 – Global Jet Capital, a global leader in financial solutions for business aircraft, released its five-year Business Jet Market Forecast today reporting continued growth for the period. First introduced in 2021, the updated report contains insights and projections for the business aviation market through 2026, including new deliveries and pre-owned transactions. The report contains a high level of detail based on outputs generated by Global Jet Capital’s proprietary transaction forecast model.
“If you are active in the business aviation environment, you recognize that despite the continuing negative effect of COVID-19 on world health and various business sectors, its effect on business aviation has been altogether different. The pandemic more broadly socialized a value proposition those of us in the business aviation industry have always understood. It’s the unique value proposition of business aviation, supported by a mature industry demonstrating balanced supply and demand dynamics, that will support sustainable growth for the foreseeable future.” Andrew Farrant, Chief Marketing Officer, stated.
Based on its model, Global Jet Capital projects $186.8 billion in total transaction volume of new and pre-owned transactions between 2022 and 2026, with a compound annual growth rate of 5.1 percent during that time.
The report also forecasts heavy and medium jet demand should increase at faster rates than other size categories. North America will remain the largest business jet market over the next five years with Europe being second largest market. Additionally, Latin America will be an important pre-owned market.
Global Jet Capital believes that the projections contained within the forecast will be a useful tool for individuals and organizations as they navigate the years to come. To download the Market Forecast, visit: www.globaljetcapital.com/forecast-22
About Global Jet Capital
With more than $5 billion invested in business aviation and a unique ABS program that has attracted over $3.5 billion into the sector, Global Jet Capital provides financing solutions for the business aircraft market. The Company is capitalized by world-class private investors with expertise in the global aviation industry: Carlyle, FS/KKR Advisor, LLC, a partnership between FS Investments and KKR Credit, and AE Industrial Partners. The Global Jet Capital management team has served the business aircraft industry for a combined 250-plus years and has completed over 3,500 aircraft transactions. The Company has the expertise, financial strength, industry relationships and infrastructure necessary to offer a variety of flexible financing solutions at the speed the market requires. Visit www.globaljetcapital.com to learn more.
This release was originally published by Global Jet Capital on May 22, 2022.
Used Aircraft Maintenance & Marketability Analysis – March 2022 see more
While pre-owned aircraft availability appeared to be stabilizing, demand was at an all-time high in March, and Ask Prices continued to increase. Which models were affected the most? NAFA member, Asset Insight's President and CEO Tony Kioussis explores.
Asset Insight’s tracked fleet decreased 0.7% (five fewer aircraft) during March, and listings were 58.5% below the June 2020 peak. The analysis undertaken on March 31 examined 134 models, equating to 698 inventory assets. However, many young, lower-time aircraft continue to transact without ever being listed for sale.
The tracked fleet’s Quality Rating posted three consecutive monthly improvements to reach a 12-month high figure in March. At 5.308 on Asset Insight’s scale of -2.5 (low) to 10 (high), inventory assets moved into the ‘Excellent’ range (from February’s ‘Very Good’ status), signifying fewer near-term maintenance events and proving, yet again, that Maintenance Status does not directly relate to aircraft age. The figure was also relatively unchanged Year-over-Year (YoY).
Used Aircraft Maintenance & Marketability Analysis – February 2022 see more
NAFA member, Tony Kioussis, President and CEO of Asset Insight, shares their latest Used Aircraft Maintenance and Marketability Analysis.
More turbine aircraft than ever sold without a public listing in February, while the average Ask Price continued to climb, and availability decreased. Which models were affected the most?
Asset Insight’s 134-model tracked fleet ended February with only 703 assets listed for sale, having decreased by 5.3% in February (39 aircraft). Younger, lower-time unlisted aircraft continue to transact at a pace we’ve never seen before, and listings are now down more than 58% since the June 2020 peak.
As proof that an aircraft’s maintenance condition and its age have no direct correlation, the listed fleet’s Quality Rating improved an additional 0.8% to 5.216 (indicating fewer upcoming maintenance events), following January’s 0.6% rise. Available inventory remained within ‘Very Good’ territory, but the latest Rating was 2.6% lower, Year-over-Year (YoY).
This Asset Insight report was originally published by AvBuyer on March 16, 2022.
NAFA member, Aero Asset, shares their latest 2021 Annual Heli Market Trends report. see more
NAFA member, Aero Asset, shares their latest 2021 Annual Heli Market Trends report.
Heli Market Trends compiles 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 RISES, SUPPLY SHRINKS
- Total retail sales increased 25% 2021 vs. 2020 (YOY).
- Supply for sale decreased 25% lower Q4 2021 vs. Q4 2020 (YOY).
- Absorption rate reached its lowest point in 3 years at the end of Q4 2021.
WEIGHT CLASS PERFORMANCE
- Supply for sale decreased in all asset classes through 2021.
- Light & Medium twin engine retail sales volume increased nearly 40% YOY. • Heavy retail sales declined by half over same period.
REGIONS & CONFIGS
- North American & European sales accounted for 70% of total transactions in 2021.
- North America saw the highest transaction volume increase +70% YOY.
- Sales volume of VIP configurations rose 25% YOY while utility sales rose 40%.
- The best performing preowned twin engine market in 2021 was the Airbus EC/H145, for the third consecutive year, followed by the Bell 429 and the Leonardo A109S/SP.
- The worst performing preowned twin market in 2021 was the Airbus EC/H225 market, with a 50% drop in sales volume YOY.
DEAL PIPELINE COOL DOWN
- The number of deals pending at various stages of transaction declined 40% Q4 2021 vs. Q4 2020.
- However, the number of deals pending in the pipeline remained stable for the last 3 quarters of 2021.
Full Heli Market Trends report available at (https://www.aeroasset.com/en/report-download/2021
This report was originally published by Aero Asset on March 8, 2022.