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Asset Insight has published its 2016 Year End
issue of the Asset Insight Market Report (AI2 Market Report) covering the
pre-owned business jet and turboprop aircraft markets.
This report analyzed values for every
production year of every modern make/model Business Class aircraft, and the
maintenance analytics cover 91 fixed-wing models, and 1,865 aircraft listed “for
sale.”
All data indicated that 2016 was an
exceptional year for buyers of pre-owned business jet and turboprop aircraft
with ever-falling asking prices coupled with excellent quality of “for sale”
aircraft.
Additionally:
- Average selling price fell for the
seventeenth consecutive quarter during Q4, while the inventory fleet’s
maintenance quality was excellent.
- While “for sale” aircraft asking price
continued to fall during the fourth quarter of 2016, the rate at which it
declined slowed.
- Average selling prices are expected to
continue to decline during Q1 2017, but the rate of decline is expected to
improve during this period.
eTrend 90-day forecast indicates that some
models are expected to lose over $1M in value, while other models should expect
more moderate decreases in value.
- Average Maintenance Exposure (the accrued
or embedded cost of future scheduled maintenance) posted the highest/worst
figure of the past 12 months, driven by Large Jets. Small Jets posted the
group’s lowest/best 12-month figure.
- Aircraft whose ETP Ratio (Maintenance
Exposure divided by Ask Price) exceeded 40% this past quarter have been
listed for sale 49% longer than aircraft whose Ratio was below 40% (223
versus 333 Days on Market).
“2016 was a challenging year for aircraft
owners hoping to sell at a premium, and for aircraft sales professionals and
services. The good news is that the market represents an unprecedented
opportunity for those who are ready to buy business jets and turboprops,” said
Tony Kioussis,
president of Asset Insight, LLC.
This first Asset Insight Market Report of 2017
(covering 2016 year-end results) has extensive analytics which are translated
into easy-to-read facts for the market as a whole, and includes charts with
details covering four aircraft categories. Only available from Asset Insight,
the AI2 Market Report - published quarterly - also includes eTrendTM, a 90-day
forecast for aircraft value by make and model. This tool is especially helpful
to sellers who are evaluating offers on their aircraft while concurrently
considering if their prospects are likely to improve. Statistically, Asset
Insight’s eTrend forecasts are based on some of the most robust data analysis in
the industry and have been thoroughly back tested to confirm a significant
degree of accuracy.
Download the full 2016 Year End Asset
Insight Market Report
here
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