Pre-owned Bizav Market Shows Fourth-quarter Rebound
Fourth-quarter pre-owned transactions also increased by 25% over the fourth quarter of 2019, the firm found in its AI2 Market Report, released on Jan. 22. The report covers 1,912 aircraft listed for sale.
“Q4 2020 demand continued to strengthen for pre-owned aircraft, with a fantastic close—up 25% year-over-year,” said Tony Kioussis, Asset Insight president. “Of course, some markets were stronger than others, with large jets being a real standout in activity. Pricing trends were mixed, however, with light jets posting the only year-over-year increase, [at] 3.0%.”
For the tracked fleet overall, aircraft spent 6.7%, or 23 more days on the market, during the fourth quarter. Aircraft with “maintenance exposure” based on individual event costs relative to ask price (ETP ratio) “improved but remained worrisome,” Asset Insight said. The ETP ratio reflects aircraft marketability.
Aircraft with an ETP ratio that was 40% or higher during the fourth quarter were listed for sale 64% longer (177 days more) than aircraft with an ETP ratio below 40%.