JetNet: Used Bizjet Market Making ‘Strong Recovery’
“A strong recovery of the pre-owned business jet market full-sale transactions is under way in 2012 and should result in a new record peak activity, surpassing that last seen in 2007,” business aviation market information firm JetNet said yesterday in its latest market update. The compounded annual growth rate for sales transactions of used business jets has averaged 12.2 percent, it noted.
According to JetNet, pre-owned business jet inventory in October stood at 13.5 percent of the in-service fleet, down 0.3 points from a year ago. Compared with the same 10-month period last year, business jets are also on a “positive pace” with 7.6-percent year-to-date growth in pre-owned sales transactions, to 1,818, and a 5.5-percent increase, to $4.62 million, in average asking prices. Average number of days on the market for used jets remained stagnant at 365.
The number of business turboprops for sale trended downward, as did asking prices and the number of sales transactions. Pre-owned business turboprop inventory in October settled at 8.5 percent, down 1.3 points year-over-year. While this segment is theoretically a seller’s market, sales transactions slid by 3.3 percent, to 1,113 transactions, and average asking prices dropped by 3.7 percent to $1.29 million. Meanwhile, the average days on the market for used turboprops increased year-over-year by 19, to 342 days.