JETNET Releases December 2014 and Year 2014 Pre-Owned Business Jet, Business Turboprop, Helicopter, and Commercial Airliner Market Information.

PRESS RELEASE

Date: Feb. 9, 2015

For Immediate Release

 

UTICA, NY – JETNET LLC, the leading provider of corporate aviation information, has released December 2014 and 2014 year-end results for the pre-owned business jet, business turboprop, helicopter, and commercial airliner markets.

 

Market Summary

JETNET has published key worldwide trends across all pre-owned aircraft market sectors, comparing December 2014 to December 2013, as well as 2014 year-end, and comparisons to 2013. Across all market sectors, JETNET is reporting 8,476 full retail sale transactions for 2014. Last year, this number was 8,327, an increase of 176 (or 1.8%), all from business jets. The fleet “For Sale” percentages for all market sectors—except for commercial turboprops, which showed a .6% increase—were mostly unchanged in the December comparisons. However, business jets showed the largest decrease, from 12.5% in December 2013 to 11% in December 2014.

 

Key Metrics (December 2014 vs. December 2013 and 2014 vs. 2013 Year-End Comparisons)

For Sale inventories continue to decline:

• Business jets for sale were at 11% (down 1.5 pts. from 12.5%)
• Business turboprops for sale were at 7.7% (no change from 2013)
• Turbine helicopters for sale were at 6.4% (no change from 2013)
• Piston helicopters for sale were at 6.1% (up 0.1 pt. from 6.0%)

Full Sale Transactions had mixed results, with only business jets and commercial airliners showing growth:

• Business jets were up (8.1%)
• Business turboprops were down (-11.6%)
• Both turbine (-0.2%) and piston (-7.3%) helicopters were down, as were all the commercial airliners

Average Days on Market are all at very high levels:

• All market sectors decreased in Average Days on Market YTD through December, except piston helicopters and commercial airliners, which took 41 or more days.

Average Asking Prices had mixed results:

• Business jets (-10.4%), business turboprops (-1.7%), and piston helicopters (-1.8%) decreased
• Turbine helicopters increased (+0.7%)

 

Pre-owned Business Jet Market “For Sale”

Several significant events have occurred since 2005 in the Business Jet “For Sale” inventory. First, in the past 10 years, the market has remained a buyer’s market, based on 10% or greater fleet percentage of the in-operation business jets for sale.

 

Second, after several years of record sales and rising aircraft values, the bubble finally burst in 2008 amid a world economic collapse and banking crisis of historic proportion. There were large increases—973 (60%) in 2008 and 1,147 (70%) in 2009—of business jets in the For Sale inventory. This large increase peaked in 2009.

 

Third is the gradual decline, starting in 2010, of the year-end For Sale inventory—relatively stable for the past five years. Note that this is percentage for sale, and has declined primarily as a result of the growth of the in-operation fleet number, which increased from 17,118 in 2009 to 20,010 in 2014. The year-end 2014 For Sale inventory level is 2,202, or 11% for sale. This inventory level is still above the 2,000 mark, but is at the lowest level since 2008, and nearly at the percentage level of 10.8% recorded in 2007.

 

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