JetNet: Pre-owned Bizjet Market To Strengthen in 2011
Numbers released yesterday by corporate aviation information analyst JetNet suggest a stronger year ahead for new business jet sales. Pre-owned full-sale business jet transactions for 2010 were up by 16 percent, compared with 2009, and exceeded the 2008 transaction level by 4.8 percent. One reason for increased pre-owned sales can be found in a continuing decline in pricing, ranging from 1.5 percent lower for piston helicopters to 18.5 percent down for business jets versus 2009. According to the report, the percentage of jets for sale dropped for 16 months before the end of last year, from 17.7 percent to 14.8 percent. “So we still remain in a buyer’s market,” the report concluded. “A seller’s market is when 10 percent or less of the pre-owned inventory is for sale.” The percentage of turboprop business aircraft for sale as of December 31 was 10.5 percent, down from a peak of 12 percent set in May/June 2009. The percentage of turbine helicopters for sale (excluding Russian civil helicopters) was 7 percent, 0.1 percent higher than at the same point in 2009. A buyer’s market in the helicopter world is when the percentage of helicopters for sale exceeds 5 percent of the fleet. The report also noted the average number of days that a pre-owned business aircraft remained on the market in 2010 was 323 days�64 days more than in 2009.