market reports

AvBuyer's Chris Kjelgaard asks industry experts what conditions they reckon will prevail in the market for pre-owned business aircraft in 2025.

Barring a major geopolitical event or environmental calamity, 2025 should prove to be a year of price stability and healthy trading levels for the younger examples of the world’s fleet of pre-owned business aircraft. Such is the view of four senior aircraft traders...

But the outlook isn’t anywhere near as rosy for business aircraft which have been in service for 20-plus years as the pre-owned market settles back to what insiders consider a “normal” state of buying and selling activity.

The aircraft brokers see the market in North America, and particularly the US, continuing to dominate pre-owned aircraft for sale activity. And not only will activity in the US domestic market continue at a high level, but internationally the US will be a net accepter of pre-owned business aircraft from around the globe.

The hungry US market is expected to particularly look to Europe for pre-owned jets and turboprops, partially because European Business Aviation is under an increasingly intense spotlight from the continent’s environmental organizations and governments.

While much of that scrutiny is uninformed and unfair, the pressure is anticipated to continue to result in used aircraft leaving the European fleet to make their way elsewhere – particularly to the US (for smaller and larger aircraft alike) and to the Middle East and Asia (for large business jets).

Current & Near-Future Used Aircraft Market Conditions

Tony Theis, Vice President of Sales, Acquisitions and Consulting for Central Business Jets, notes the market for used business aircraft has become much more stable in 2024, with the buying frenzy prevalent during the peak of the COVID-19 pandemic calming.

“What Central Business Jets is seeing is that prices have really come back to a healthy stabilization,” he adds. “They have come down about 10% across the board from the highs of 2021 to 2023.”

In the globally dominant US market, growth has been very modest in 2024, because the US’s GDP has stagnated and could even end the year down. “The thing we do know that affects the [used] aircraft market is not the stock market, but the GDP of the economy,” Theis continues. “We see growth when we get over the 2% range” in GDP growth.

Because the US GDP is not growing at a strong clip, Theis reckons "we are not seeing 4-6% growth” in the aircraft market as a result. Additionally, he says “we’re seeing discounts because aircraft...were too highly priced” during the pandemic-led trading bubble.

That said, the market “is still up quite a bit from pre-COVID levels and we’re still seeing very healthy numbers” of inquiries for Central Business Jets’ listings of aircraft for sale, he says, revealing his company received about 30 inquiries for a Bombardier Challenger 300 it listed the previous week.

While most were from individuals or companies who were “just curious” about the aircraft, five or six were from those who were “really thinking of upgrading” to a younger or bigger aircraft.

Overall, he adds, the healthy state of the used-aircraft market is benefiting from the fact that the “OEM backlogs [of new aircraft on order] are stable and really healthy – the OEM market drives the used market”.

Business Aircraft OEMs Hold Fire

According to Johnny Foster, President & CEO of OGARAJETS, today business aircraft manufacturers are all boasting orderbook backlogs of 18-24 months at current production levels.

Read full article here

This article was originally published by AvBuyer on November 5, 2024.

Gerrard Cowan speaks to a selection of leading Business Aviation professionals to discover more about the current US market...

While the US business aircraft market experienced a post-Covid boom, there have been signs of softer demand in recent months. Nevertheless, although the sector is adapting to new economic and geopolitical realities, industry experts retain strong optimism looking forward.

Among the factors impacting today’s market, Wen Chongjian, Vice President, Aircraft Sales at Leviate Air Group, says the US business aircraft market in 2024 faces a unique set of challenges and opportunities, driven by political uncertainty, economic factors, and shifting demand dynamics.

“Compared to one to two years ago, demand in the pre-owned market has softened somewhat, with more buyers taking a cautious approach due to heightened uncertainty and higher interest rates,” Chongjian notes.

“Key geopolitical events, such as the ongoing war in Ukraine, have added complexity by impacting fuel costs and global supply chains, indirectly influencing aircraft ownership decisions.”

Chongjian reckons the more immediate drivers of demand in the US market are domestic political uncertainty tied to the Presidential election in November, as well as broader economic conditions reflected by inflation and interest rates.

There has been a gradual increase in inventory across most aircraft markets, which is impacting pricing strategies, Chongjian notes. The overall percentage of fleet for sale is still below 10%, which typically indicates a seller’s market, but there are signs of transition in some segments, he says.

“Older models with higher operating costs, for instance, are increasingly entering a buyer’s market due to reduced demand, and certain markets have already dived deep into the buyer’s market with nearly 18% of the fleet for sale,” he qualifies.

“The current interest rate at over 7% for aircraft financing is making aircraft ownership more expensive, especially for those models that are less fuel-efficient or come with higher maintenance costs.”

Read full article here

This article was originally published by AvBuyer on October 3, 2024.

TORONTO, Canada, September 19, 2024 – Aero Asset released its 2024 Half Year Heli Market Trends Twin-Engine edition. Aero Asset leverages proprietary market intelligence to deliver a comprehensive analysis of the market, allowing readers to navigate the shifting dynamics of the preowned twin-engine helicopter market.

“Our analysis shows a 30% year-over-year decrease in retail sales volume of preowned twin-engine helicopters in the first half of 2024, and a 26% increase in supply for sale,” said Valerie Pereira, Vice President of Market Research. Additionally, Pereira explained the absorption rate had increased to 18 months of supply at current trade levels.

Pricing

Despite the lower sales volume, average preowned trading prices have reached a five-year peak across all twin-engine asset classes, with the biggest average transaction price increases in the light (+21%) and medium twin-engine helicopter markets (+14%) year over year (YOY).

Weight Class Performance

Retail sales declined across all weight classes YOY. The medium twin market saw the biggest drop in retail sales (-46% YOY), followed by heavies (-25% YOY), and light twin-engine helicopters (-14% YOY). Supply for sale of light twin-engine helicopters reached one of its highest levels; conversely, medium and heavy twin market supply for sale reached their lowest point in five years.

Regions

In the first half of 2024, Europe was the only region to buck the trend and see an increase in preowned retail transactions (+5% YOY). Asia Pacific experienced the biggest regional drop in retail sales volume (-73% YOY). Supply in North America and Europe increased by 5% and 35% respectively YOY. These regions represented 62% of the total supply and accounted for two-thirds of total retail sales in the first half of 2024.

Liquidity

The best performing preowned twin-engine market during the first six months of 2024 was the Airbus EC/H145, followed by the Airbus EC/H135, and the Leonardo AW139. The slowest performing preowned twin markets were the Airbus EC/H155 and Sikorsky S76D markets, with absorption rates over three years.

Download 2024 Half Year Heli Market Trends Twin-Engine Edition

Heli Market Trends reports have become a trusted source of insight and analysis covering the global preowned helicopter market. Visit aeroasset.com/report to download the latest report with all its data and valuable analysis. This report includes a conversation with Sarah Fairweather, Partner and Head of Talent at Jaffa & Co.

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About Aero Asset Inc.

Aero Asset is an international helicopter trading and market intelligence firm, headquartered in Toronto, Canada. With a multicultural team and decades of experience marketing and selling aircraft across the globe, the company has grown into a world-leading helicopter sales and market intelligence firm.

Aero Asset is a member of the Helicopter Association International, the Association of Air Medical Services, the National Aircraft Finance Association, the European Helicopter Association, and the National Business Aviation Association.

For more information about the company, its inventory for sale, or its full scope of services and industry reports, please visit https://aeroasset.com.
 

Safe Harbor Statement

No representation, guarantee, or warranty is given as to the accuracy, completeness or likelihood of achievement or reasonableness of any statements made by or on behalf of Aero Asset. The information contained herein should not be construed as advice to purchase or sell aircraft. Neither Aero Asset nor its owners, directors, officers, employees, agents, independent contractors or other representatives shall be liable for any loss, expense or cost (including without limitation, any consequential or indirect loss) that you incur directly or indirectly as a result of or in connection with the use of data or statements contained herein or otherwise provided by Aero Asset.

This Press Release was originally published by Aero Asset on September 19, 2024.

WASHINGTON, D.C. – Today, the General Aviation Manufacturers Association (GAMA) published the Second Quarter 2024 General Aviation Aircraft Shipment and Billing Report. The general aviation aircraft manufacturing industry’s results for the first six months of 2024, when compared to the same period in 2023, show increased deliveries across the piston airplane, business jet and piston helicopter segments along with an increase in the overall value of aircraft shipments.

“Through the first half of 2024, we continue to see robust demand for new aircraft, as indicated by the impressive backlogs and plans for facility expansion by many of our OEMs. Our constraints continue to be ongoing supply chain and workforce recapitalization issues, which are routinely compounded by unacceptable turn times in terms of responsiveness and lack of decision making by the FAA specialists on such things as issue papers, certification plans and regular correspondence. Our industry is the incubator of safety enhancing and aviation sustainability technology, which in-turn serves as a catalyst for economic growth and exemplary employment for millions around the globe. It is vital that our regulators continue to improve effectiveness and efficiency of certification and validation processes, appropriately apply the safety continuum across the spectrum of general aviation products and respond to applicants in a timely manner. For the continued vitality of our industry and to facilitate all the great innovations that are taking place, it is imperative that we tackle these ongoing challenges,” said Pete Bunce, GAMA President and CEO.

Read full Press Release here

This report was originally published by GAMA on September 9, 2024.

NAFA member, Aero Asset, just released their 2024 Half Year Heli Market Trends - Single Engine Edition.  

Heli Market Trends compiles YTD 2024 performance of 4 single engine models in production and variants with recent preowned sales activity. Market performance is ranked from most to least active.

Download report here

This report was originally published by Aero Asset on July 8, 2024.

NAFA member Global Jet Capital releases their Q1 2024 Business Aviation Market Brief. 

In Q1 2024, the business jet market continued to normalize following the record high utilization and demand associated with the post COVID-19 pandemic period. Flight operations and transaction volume declined year-over-year and inventory levels rose. The economy also continued to face a variety of challenges impacting growth. Despite these challenges, business aviation remained resilient. Flight operations were above pre-COVID-19 levels, OEMs reported strong backlog growth, and inventory remained low, especially for younger, more desirable aircraft. As things stand, the industry is well positioned to weather any future economic downturn.

• Many economists have raised their forecasts for 2024, but challenges to future growth persist.
• Flight operations declined 2 percent year-over-year in Q1 2024 but were 16 percent above Q1 2019 levels, reflecting an enduring expansion in the user base for business aviation.
• OEM book-to-bill ratios were around 1.3-to-1 in Q1 with backlogs growing, demonstrating continued demand for new aircraft.
• Transactions declined in Q1 2024 due to slower-than-expected new deliveries (attributable to ongoing supply chain and labor issues and delays in aircraft certification) and price-driven inertia between buyers and sellers in the pre-owned market.
• Aircraft inventory increased in Q1. But it is important to note that a split between older aircraft and younger aircraft has emerged. Older aircraft inventory continued to increase, while inventory of younger aircraft has been stable for three quarters.
• Most aircraft models continued to experience depreciation in line with historical norms during Q1 2024. However, younger aircraft have been more stable than older aircraft.

Read the full Business Aviation Market Brief here

This market brief was published by Global Jet Capital on June 18, 2024.

The Global Jet Capital Business Jet Market Outlook summarizes the outputs of our proprietary transaction forecast model covering the period of 2024 through 2028. It reflects our projection of future activity in the business jet market in both the new and pre-owned segments across different geographies.

The business jet transaction market shrank in 2023 as OEMs continued to deal with supply chain and labor constraints and the pre-owned market continued to normalize from a historically strong 2021. Despite some headwinds in 2024, the business jet market remains resilient, and we forecast steady growth over the next five years.

Download the Forecast here

This forecast was originally published by Global Jet Capital on May 27, 2024.

Jetcraft has spent the past 10 years honing our ability to analyze the market and build on our data capabilities, allowing us to make increasingly accurate predictions for the years ahead.

This commitment to a data-science led approach provides greater transparency for buyers, sellers and the wider business aviation community when navigating the market.

Thank you for reading along with our predictions over the past decade.

Click here for this year's forecast

This forecast was originally published by Jetcraft on May 28, 2024.

NAFA member, Duncan Aviation releases their 2024 Second Quarter Business Jet Model/Market Summary.

When acquiring or upgrading a business aircraft, selecting the right make/model is one of your most important decisions. Duncan Aviation’s Aircraft Sales and Acquisitions team can help you narrow your selection with the use of a comprehensive and up-to-date Model/Market Summary.

Download the Business Jet Model/Market Summary now

The Model/Market Summary is sorted by the IFR range, with all passenger seats full for aircraft built in the last decade. It displays items including:

• Years Produced
• VREF Price Range
• Variable Cost/Hour
• Normal Cruise Speed
• Total Baggage Volume/Cabin Volume/Length/Height
• Cabin Seats
• Expected Avionics
• NBAA IFR Range-Seats Full
• NBAA IFR Range Ferry
• Payload with Fuel Full
• Average Fuel Burn

Fill out this form to request an Aircraft Sales Market Summary update specific to your aircraft.

This Market Summary was originally published by Duncan Aviation in May 2024.

ANAHEIM, Calif., February 27, 2024 – Today, at the start of Heli-Expo 2024, Aero Asset, a global helicopter sales and market intelligence firm, announced the release of its 2023 Heli Market Trends Twin-Engine Edition. This popular annual report features proprietary market intelligence and analysis, providing buyers and sellers with valuable insight into the global preowned twin-engine helicopter market.

Valerie Pereira, Aero Asset’s Vice President of Market Research, said 2023 saw fewer twin-engine helicopter deals than 2022 and a stable supply of helicopters for sale. “Our data shows that retail sales volume for twin-engine helicopters decreased by 12% in 2023 versus 2022,” she explained. “Yet supply remained constant year over year (YOY), and the absorption rate increased for the first time in three years to 14 months of supply at current trade levels.”

Weight Class Performance

When broken down by weight class, retail sales in the light twin-engine helicopter market declined 8%, and supply for sale increased 15% YOY. In the medium twin market, both retail sales and supply declined. In the heavy twin market, supply was stable YOY, and retail sales increased 36% over the same period. 

Average Retail Prices Resilient

The average transaction price of twin-engine helicopters remained resilient in 2023. The average transaction price (ATP) for medium twins declined 3%, but the ATP for both light and heavy twins increased 18%, resulting overall in a 10% higher ATP YOY. 

Regional Shifts

In the last year, there were noticeable shifts in retail sales and supply of twin-engine helicopters by region. North America and Europe saw the most significant drops in retail sales volume. These two regions accounted for 75% of total retail sales in 2022 but only 50% in 2023. Retail sales volume in all other regions increased during the same period. Supply for sale in North America and Europe represented 64% in 2023, a 20% increase from 2022. Twin-engine supply in all other regions decreased YOY. 

Liquidity Lineup

In 2023, the best-performing twin-engine helicopter in the preowned market was the Bell 429, followed by the Leonardo A109E Power. The Sikorsky S92A and Leonardo AW109S/SP shared third place, with absorption rates under six months of supply at the current transaction volume. The slowest-performing preowned twin markets were the Leonardo AW169 and Sikorsky S76D.

Deal Pipeline 

At the end of Q4 2023, there were 40 deals pending at various stages of transaction. This was 75% higher than Q4 2022 and represents the highest number of twin-engine helicopter deals pending recorded in the last five years.

If you have questions or would like additional information, please visit the Aero Asset team at their Heli-Expo booth #1617 at the Anaheim Convention Center. If you are attending Heli-Expo, please join Aero Asset’s 2023 Heli Market Trends Twin-Engine Edition presentation and press conference on February 27 at 09:00 a.m. PT in room # 213A of the Anaheim Convention Center. 

Download Heli Market Trends 2023 Twin-Engine Edition 

Visit aeroasset.com/report to download the report with all its data and analysis, as well as an interview with Ollie Dismore, Technical and Safety Executive at the European Helicopter Association (EHA). 

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About Aero Asset Inc.

Aero Asset is an international helicopter trading and market intelligence firm headquartered in Toronto, Canada. With a multicultural team and decades of experience marketing and selling aircraft across the globe, the company has grown into a world-leading helicopter sales and market intelligence firm.

Aero Asset is a member of the Helicopter Association International, the Association of Air Medical Services, the National Aircraft Finance Association, the European Helicopter Association, and the National Business Aviation Association. 

For more information about the company, its inventory for sale, or its full scope of services and industry reports, please visit https://aeroasset.com.

NAFA member, Thomas W. Mitchell, Executive Vice President of Essex Aviation, discusses midsize private jet costs and benefits.

Executives and sales teams frequently choose to acquire or charter midsize jets for the economics, convenience, comfort and flexible travel capabilities. Certain midsize jets may only need between 3,500–5,000 ft. of runway to operate, making them ideal for quick trips between the many smaller private airfields.

So, why might a midsize private jet fit your needs and what are your options? In this guide, you’ll find pricing, specifications, recommendations and more.

What Is a Midsize Private Jet?

A midsize jet is a medium size class of private aircraft normally capable of a non-stop range of 2,500 to 3,500 miles, typically with an eight- to ten-passenger capacity. A bit larger than light jets, midsize private jets will offer more cabin space to accommodate expanded seating options, as well as head- and legroom. Most models have a cruising altitude speed in the range of 530 mph, but some — such as the Cessna Citation X — are designed to reach maximum speeds upwards of 700 mph.

Midsize jets are considered ideal for group business trips, regional travel or short intercontinental flights lasting five or perhaps six hours — think Boston to Dallas. They typically feature club-style seating, ample luggage space, a dedicated lavatory and a medium-size but functional galley. With an average takeoff requirement of less than 5,000 feet of runway, midsize jets are usually more than capable of accessing many small private airfields.

Read full article here

This article was originally published by Essex Aviation.

NAFA member, Global Jet Capital, releases their latest Business Aviation Market Brief.

The rapid expansion of the business jet marketing during the post-COVID recovery period slowed in 2023, although most indicators remained strong in comparison to the pre-COVID levels.

Business jet flight operations were down year-over-year, inventory levels climbed from an early 2022 low point, supply chain and labor constraints held back new deliveries, and pre-owned transactions slowed from recent high levels. Furthermore, while the economy proved resilient in 2023, many consumers, businesses, and economists remained uncertain about the future. Still, the business jet market had a positive finish to 2023: flight operations were strong, backlogs and lead-times at major OEMs were up, and inventory remained low, leaving the industry well positioned to weather any future economic downturn.

Read full Market Brief here.

This Market Brief was published by Global Jet Capital.

WASHINGTON, D.C. – Today, the General Aviation Manufacturers Association (GAMA) released the 2023 General Aviation Aircraft Shipments and Billings Report during its annual State of the Industry Press Conference. Overall, when compared to 2022, all aircraft segments saw increases in shipments and preliminary aircraft deliveries were valued at $27.8 billion, an increase of 3.6%. 

“For the first time in more than a decade, the general aviation manufacturing industry has eclipsed 4,000 aircraft delivered. In addition to this strong showing, there are robust and growing order backlogs for all segments of aircraft. This is a testament to the resilience of our industry and the integral role that general and business aviation plays in our communities. While the deliveries from 2023 are very encouraging, our industry faces headwinds from ongoing supply chain issues, workforce shortages, uncertainty and unpredictability from global regulators, and short-sighted efforts aimed at curbing business and general aviation, particularly in Europe. As civil aviation’s innovation incubator, our entire GA industry is focused on new aircraft and technologies that will lead the way in safety and sustainability for the entire aviation sector. This progress is dependent on having effective, predictable and accountable regulatory processes, and a supportive business environment. Therefore, it is crucial that the U.S. Congress passes a long-term FAA reauthorization bill, a fiscal year 2024 appropriations bill for the FAA, and a tax measure which is pending that promotes research and development. Likewise, non-U.S. global regulatory agencies must receive the proper budgetary support from their governments to carry out current and future activities. If political entities and regulatory bodies can deliver on their responsibilities, what our industry can accomplish in 2024 and beyond will be extraordinary,” said Pete Bunce, GAMA President and CEO. 

Read full release here

This press release was originally published by GAMA on February 21, 2024.

AvBuyer's Matt Harris caught up with NAFA member OGARAJETS’ Johnny Foster to discuss some of the key pre-owned aircraft sales market dynamics moving into 2024.

Closing 58 transactions representing nearly $700m in asset value, 2023 proved to be another record year for OGARAJETS, and Johnny Foster remains bullish for 2024 business opportunities.

For those following developments at the Atlanta, Georgia-based aircraft broker, this is not a coincidence. Just prior to the Covid pandemic in 2020, OGARAJETS entered its 40th year of operations, and marked the milestone by flipping its family business model on its head to strategically grow its small, boutique firm into an enterprise business.

“We spent more than a year developing a refined business model along with an aggressive 10-year strategic plan, which included a significant expansion of both sales and sales support, along with an underlying operating platform that would serve as a ‘common basis’ for all of our divisions to operate in sync,” says Johnny Foster, President and CEO of OGARAJETS.

“The onset of the pandemic allowed us the space to continue making investments and refinements without the interruption of transaction flow. However, by Q3 2020 the industry had made a complete 180-degree turn and has hardly looked back. With our new model fully deployed, we were well poised to take advantage of the skyrocketing market to come.”

Since 2019, OGARAJETS has grown its team from seven to 20 professionals, seen its annual transaction flow increase from 22 to 58 closings, and increased top-line revenue threefold.

Specifically in 2023 around 10% of OGARAJETS engagements involved representing clients in the acquisition of factory-new aircraft, Foster shares, while approximately 55% of the company’s exclusive engagements last year came from previous clients. “That translates into new client growth of 45%, which is a very exciting measure for us.”

Read full article here

This article was originally published by AvBuyer on January 31, 2024.

Media Contact

Pierre Bled
pyb@aeroasset.com
+1 732 578 8217

FOR IMMEDIATE RELEASE

Preowned Single-Engine Helicopter Market Slowdown Continues but Conditions Remain Strong            

TORONTO, Canada, January 22, 2024 – Aero Asset, a global helicopter sales and market intelligence firm, announced the release of Heli Market Trends 2023 Single-Engine edition. This report features proprietary market intelligence and analysis of the global preowned single-engine helicopter market.

“In 2023, pricing for single-engine helicopters remained strong even though retail sales volume reached its lowest level in three years,” said Valerie Pereira, Aero Asset’s Vice President of Market Research. 

The report shows retail sales volume decreased by 50% in 2023 versus 2022, while the supply of single-engine helicopters for sale ended 30% higher year over year. Average asking price increased 4% and the average transaction price increased 13% year over year. Absorption rate deteriorated through 2023 but ended the year at a reasonable one year of supply at current trade levels. 

Regions

The North American market saw the lion’s share of retail buyers. North America accounted for 62% of transactions last year followed by Latin America (14%), Asia Pacific (12%), and Europe (9%) with the remaining spread worldwide. Retail transactions to Europe dropped 70% year over year. 

At the end of 2023, the region with the largest share of supply of single-engine helicopters for sale was Europe (36%), followed by North America (22%), Asia Pacific & Latin America (17% respectively) and rest of world (8%). 

Liquidity

The most liquid preowned single-engine helicopter market in 2023 was the Bell 407/GX/P/I, followed by the Airbus AS350 B3/B3e/H125, and the Leonardo AW119K/Ke/Kx. The least liquid preowned market was the Airbus EC130 B4/H130. 

Download Heli Market Trends 2023 Single-Engine Edition 

Visit aeroasset.com/report to download the report with all its data and analysis as well as an interview of Alex Durand, CEO of SaxonAir. 

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About Aero Asset Inc.

Aero Asset is an international helicopter trading and market intelligence firm, headquartered in Toronto, Canada. With a multicultural team and decades of experience marketing and selling aircraft across the globe, the company has grown into a world-leading helicopter sales and market intelligence firm.

Aero Asset is a member of the Helicopter Association International, the Association of Air Medical Services, National Aircraft Finance Association, the European Helicopter Association, and the National Business Aviation Association. 

For more information about the company, its inventory for sale, or its full scope of services and industry reports, please visit https://aeroasset.com.

Safe Harbor Statement

No representation, guarantee or warranty is given as to the accuracy, completeness or likelihood of achievement or reasonableness of any statements made by or on behalf of Aero Asset. The information contained herein should not be construed as advice to purchase or sell aircraft. Neither Aero Asset nor its owners, directors, officers, employees, agents, independent contractors or other representatives shall be liable for any loss, expense or cost (including without limitation, any consequential or indirect loss) that you incur directly or indirectly as a result of or in connection with the use of data or statements contained herein or otherwise provided by Aero Asset.