- While the demand for pre-owned business jet and turboprop aircraft remains unchanged, record low prices are enticing value-focused buyers to act, according to Asset Insight's Q2 2017 issue of its Asset Insight Market Report (AI2 Market Report).
- While market demand remains steady, prices continue to fall, and data indicates that they will continue to fall, through Q2 2017. The silver lining is that the pre-owned business aircraft market has many excellent aircraft for sale for a very good value, presenting buyers an extraordinary opportunity.
- The Mod Squad - Business Aviation Advisor ~ Improve Safety and Value with After-Market ModificationsBusiness aircraft – manufactured to the same specifications as commercial airliners – are a good investment, built to last 20 to 30 years. When it comes time to upgrade your aircraft, you can buy new, or you can consider aftermarket modifications. During the past decade, the range of modification options has increased dramatically, including more powerful and/or efficient engines, advanced propeller designs, cameras to view the aircraft’s exterior while it is airborne, and performance enhancers, such as winglets, which are vertical extensions added to the tip of the aircraft wing, designed to reduce drag and increase aerodynamic efficiency.
- This AI2 Market Report evaluates 91 fixed wing aircraft models, totaling 1,919 aircraft listed "for sale" as of March 31, 2016. Overall, comparing Q1 2016 to Q1 2015, most indicators showed improvement – Asset Quality posted the best figure recorded to date; Maintenance Exposure improved substantially and is at its 12-month low; and, the ETP Ratio (Maintenance Exposure to Ask Price Ratio) improved to post the lowest figure since December 2014. However, quarter over quarter, the markets did experience mostly lower Ask Prices.
- I was listening to an experienced, NARA-certified aircraft broker recently, who told me about how sellers unrealistically keep hoping to secure values they achieved during "the good old days," while prospective buyers continue to sit on the sidelines not wishing to overpay for aircraft whose prices appear to be continuously decreasing. After thinking about this market phenomenon, I concluded that both buyers and sellers need a reality check.
Every business manager has plenty to think about, and some business issues lead to restless nights. Managing a valuable, yet non-core, business asset need not be one of those issues. Here are some ideas to help you sleep better.
High Aircraft Quality & Mixed Pricing Data Indicate Opportunity for Buyers & Sellers
January 18, 2016 – AMISSVILLE, Virginia. Asset Insight, Inc. today published its Fourth Quarter 2015 issue of the Asset Insight Index Market Report (AI2 Market Report) covering the pre-owned aircraft market for calendar year 2015.
- ASSET QUALITY REMAINS EXCELLENT, MAINTENANCE EXPOSURE IMPROVES WHILE FOR SALE AIRCRAFT ASK PRICES REMAIN LOW
"Buyer’s Market" Continues through Q3 2015
October 14, 2015 – AMISSVILLE, Virginia. Asset Insight, Inc. today published its Third Quarter 2015 issue of the Asset Insight Index Market Report (AI2 Market Report). Asset Insight analyzed 91 fixed wing aircraft models, totaling 1,826 aircraft listed "for sale." While the Ask Prices increased just over $25,000 since June, they remain just 3% above the lowest figure achieved during the past 12 months.
- Anyone acquiring an in-service aircraft will, at some point, evaluate the maintenance condition of candidate assets before finalizing their purchase offer. Maintenance condition is often an aircraft's greatest "wild card", and it is important to understand the aircraft's age is not the sole, or even the primary determinate of an aircraft's Maintenance Equity.
- ASSET INSIGHT RELEASES AIRCRAFT GRAYBOOK TM WITH SAI VALUATION DATA - Quarterly Asset Quality Evaluator now Provides Fair Market Value Figures Based on Current Market Trends
Asset Insight, Inc. (AI2) has released its Volume III, 2015 edition of the Aircraft Graybook TM – Asset Quality Evaluator, available online at an annual subscription fee of $299. The Aircraft GraybookTM utilizes Asset Insight’s proprietary Asset Grading System Process (Patent Pending) to derive the Baseline Asset Insight Index ("Baseline Index") for over 100 fixed-wing aircraft and helicopters, based on their date of manufacture and total flight hours.
- JULY 2015 ASSET INSIGHT INDEX MARKET REPORT REFLECTS “EXCELLENT” ASSET QUALITY AT VERY ATTRACTIVE PRICES - “Buyer’s Market” Prevails as Ask Prices Continue to Fall
July 16, 2015 – AMISSVILLE, Virginia. Asset Insight, Inc. today published its Second Quarter 2015 issue of the Asset Insight Index Market Report (AI2 Market Report). A new addition, commencing with this Q2 2015 report, is an analysis from SAI Valuations, LLC (SAI) that adds a dimension to the market data not previously offered with Asset Insight’s maintenance analysis.
- ASSET INSIGHT AND SAI VALUATIONS ENTER COLLABORATIVE AGREEMENT - Collaboration Offers Unprecedented, Web-Based, Cost-Effective Aircraft Valuations that Account for the Asset’s Maintenance Exposure
June 22, 2015 - Asset Insight, Inc. and SAI Valuations, LLC announced today that they have entered into a collaborative agreement to provide aircraft owners, buyers, sellers, financial institutions and others with a uniquely complete picture of an aircraft’s value and maintenance risk. Individually, both companies are well respected and widely utilized to provide keen insight to aircraft owners, aircraft sales professionals and financial institutions.
- Maintenance condition is often an aircraft greatest value "wild card", holding the potential to shift an aircraft's value in either direction, sometimes substantively. Maintenance Equity represents the financial value of the remaining maintenance time on an aircraft's systems and components, while Maintenance Exposure measures the current value of the aircraft's accrued maintenance.
- The 2014 Year End Report analysis indicates that seller willingness to accept lower prices has improved overall jet aircraft sales figures. Turboprops have seen fewer trades in 2014 than 2013 due, in part, to heavily depressed pricing and seller unwillingness to accept even lower offers. On the other hand, one cannot fault buyers for seeking to take asset maintenance exposure into account, and we expect this inability to find middle ground to continue impacting trades.
- Q1 2015 Asset Insight Market Report Shows Severe Increase in Maintenance Risk Exposure Across For Sale FleetWhile buyers and sellers will be pleased with the quality of aircraft listed “for sale,” they should be very cautious when researching aircraft they are considering for purchase, or when determining selling price.
- An aircraft’s maintenance condition represents its greatest value “wild card” and a figure that can dramatically impact the asset’s value. The challenge—whether you are a buyer or a seller—is to correctly value the asset’s financial exposure based on its maintenance requirements.
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