Amstat: Sluggish Bizav Resale Market Continues
The business aircraft resale market continues to stall as the sluggish pace of activity seen in the second quarter has persisted, according to Amstat’s business aviation market update, released this week at NBAA 2013. “We were disappointed with the second-quarter transaction performance and were hoping for a better third quarter,” said Andrew Young, general manager of the business aviation market data provider. “In general, transaction activity for business jets and turboprops did pick up in the third quarter and inventories were down–both good signs. However, this performance is not consistent across all fixed-wing segments.”
According to Amstat, business jet retail resale transactions were up 2.6 percent in the third quarter, but were still below the 20-year average of 2.9 percent. Heavy and light jets performed the best, with 2.2 percent of the former selling in the third quarter, close to the 20-year average of 2.3 percent. Meanwhile, 3.2 percent of the light jet fleet turned over in the quarter, up from 2.5 percent in the second quarter.
Resales of midsize jets declined by 0.3 points to 2.1 percent; and the inventory of midsize jets continues to rise, which Amstat said was “of particular concern,” given the category’s poor resale performance.
Turboprop resale activity has seen little change over the past year, at 2.1 percent.