Aero Asset reports rising preowned helicopter market
Aero Asset's 2019 Preowned Helicopter Market Trends report reveals that global market conditions continued to improve last year, amidst a slowdown in light and medium twin retail sales volume.
The report, which covers twin engine helicopter markets, is a product of Aero Asset's proprietary intelligence and market research.
Overall preowned sales of $444m (USD) were down five percent from 2018, while the estimated value of available preowned helicopters in the marketplace dropped 18 percent to $1.14bn. Global absorption rate for preowned twin helicopters ended 2019 at one year, nine months, down three and a half months from 2018 year end.
"Clearly, the most active market during 2019 was the Airbus H145 which at the end of Q4 2019 had seven months of supply available for sale at 2019 trade levels," said Aero Asset Research Director Valerie Pereira. "The market that saw the biggest improvement in liquidity last year was the H225, with a drop in absorption rate of three years six months to an 18 month of supply at 2019 trade levels."
Aero Asset's market report ranks preowned helicopter markets from most to least active in 2019, based on their absorption rates, 2019 preowned sales and active fleet size. It covers twin engine helicopter models still in production and recent variants with preowned sales activity. The report covers all weight classes and configurations, including VIP, offshore, utility and EMS.
During 2019, Aero Asset found that mean trading values rose for the Airbus H135 and H155 models along with the Leonardo AW109 Grand New, while pricing in other markets dropped.
Market activity by weight class
Light twin supply for sale fell 20 percent in 2019, driven by EMS operator demand for MEGHAS & IFR equipped H135 & H145. Although light twin sales volume declined slightly year over year (YOY), market conditions improved with supply at 2019 trade level falling 20 percent last year and 40 percent since Q1 2018.
Medium twin supply & retail sales volume fell slightly in 2019. Although supply at 2019 trade level was stable YOY, medium twin absorption rate remains 45 percent lower than Q1 2018. Preowned supply at the top end of most medium twin markets has dropped significantly.
Heavy twin supply on the market is up slightly YOY but retail sales volume is up as well to 10 units sold in 2019, a 300 percent increase YOY. Supply at 2019 trade levels dropped substantially to 21 months at the end of Q4 2019, showing a continued improvement of this asset class.
The Aero Asset team will hold a press conference at 2 p.m. on Monday January 27th at HAI Heli-Expo 2020 in Anaheim, California (Room 213A), to discuss the background and specifics of the company's second annual Preowned Helicopter Market Trends report.
BlueSky Business Aviation News | 23rd January 2020 | Issue #541