Demand for used business aircraft ended 2021 at an all-time high, availability was at an all-time low, but the average Ask Price posted a record low figure. Why is this happening, and which models were affected the most? NAFA member, Tony Kioussis, President and CEO of Asset Insight, explores.
Since peaking in June 2020, inventory has now decreased 62.5%. Sales for the tracked fleet during Q4 2021 were lower than those posted during Q4 2020 (587 vs. 624 units). However, the cause was not a lack of demand, but a lack of availability – especially in young, low-time aircraft.
The 134-model fleet reviewed by Asset Insight decreased another 6.6% in December (126 fewer units), 25.7% during Q4 2021, and 53.8% Year-over-Year (YoY), or 1,028 units, a figure that exceeded 2020’s inventory fleet decrease of 902 units.
With buyer preference centered on the best available aircraft, the Quality Rating decreased 0.8% in December to 5.146, the tracked fleet’s third consecutive 12-month low, equating to a decrease of 1.9% during Q4, and 3.8% YoY.
Available assets remained within ‘Very Good’ territory, but potential buyers should note that most listed aircraft are facing more near-term maintenance events.
This report was originally published by AvBuyer on January 19, 2022.
