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.
Individuals interested in acquiring or selling an aircraft will find this to be a particularly useful tool, allowing them to quickly evaluate and compare assets based on an aircraft’s most significant financial “wild card” – its maintenance condition. The process for obtaining a Baseline Maintenance Rating is simple, the figure is generated online and at absolutely no cost to the user.
Our brand-new aircraft comes with a warranty. But over time, aircraft maintenance will account for as much as 35% of your aircraft’s annual operating budget.
As discussed in the Summer 2014 issue of Aircraft Bluebook Marketline, aircraft are assets whose values are heavily influenced by maintenance conditions.
Buying an aircraft? New or used? Consider its maintenance rating, financial rating and asset exposure.
Asset Insight, Inc. and Pinnacle Air Network today announced they had reached an agreement to provide Asset Insight’s services at a discounted rate to entities acquiring an aircraft through a Pinnacle Air Network member company.
Asset Insight Kicks-Off Program with One-Year Free Analytics to NARA Clients
You’ve made the financial commitment to sell and replace your aircraft. Then you receive an offer that is below your asking price. How do you justify its value?
Asset Insight, Inc. today announced that it has expanded its Asset Grading System Process<sup>TM</sup> (AGSP) program to include 16 helicopter models manufactured by various original equipment manufacturers (OEMs).
Asset Insight, Inc. today announced that Jetlevel GmbH would be providing marketing and sales support services within Europe and western Russia.
Asset Insight, Inc. today announced it had signed an agreement to provide Asset Insight Index analytics to SAI Valuations for use by the company in its aircraft appraisals and related services.
Asset Insight, Inc. today announced its revolutionary system enabling buyers, sellers, financial services companies and other entities to accurately evaluate an aircraft’s maintenance condition and thereby make </span><nobr style="color: rgb(0, 0, 0); font-family: Calibri; font-size: 14px; line-height: 19px;">better-informed</nobr><span style="color: rgb(0, 0, 0); font-family: Calibri; font-size: 14px; line-height: 19px;"> buying and financing decisions.
Asset Insight , Inc. today announced its new service, the "Comparable Industry Average Index" ("Comp Index") enabling aircraft buyers, sellers, and other interested entities to compare objectively the projected maintenance costs of any aircraft with the average cost of other similar make and model aircraft listed for sale
Asset Insight , Inc. today announced that it ha s expanded its Asset Grading System Process™ (AGSP) program to include more than 65 aircraft.
Asset Insight, Inc. and Aircraft Shopper Online today announced they had signed an agreement to provide Asset Insight’s services to ASO’s clients at a discounted rate.
A monthly market analysis of more than 1300 turbine aircraft listed “for sale” reveals an ongoing decline in used aircraft maintenance condition. In fact, year-to-date, the maintenance status of inservice aircraft has declined every month but one, reaching its lowest point in May.
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.
While 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.
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.
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.
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 Decision-making And Planning Tool (ADAPT) now available by subscription.
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.
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.
Merged Entity Uniquely Able to Provide Powerful World Class Aircraft Valuation and Maintenance Analytics Tools and Resources
This AI<sup>2</sup> 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.
Business 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.
Complete, Up-to-Date, Unbiased Value Picture of Specific Aircraft or Whole Fleet Now as Simple as a Mouse-Click.
NEW RECORD LOW ASK PRICES AND HIGH QUALITY AIRCRAFT FOR SALE MARK EXCEPTIONAL VALUES FOR BUYERS AT 2016 CLOSE
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 (AI<sup>2</sup> Market Report).
Trading of high quality aircraft remains active, as savvy buyers seek to derive value due to historically low prices. Due to ongoing high inventory levels among older, remaining inventory aircraft, and sellers’ traditional Q4 desire to sell their aircraft prior to year-end, average values are expected to fall during Q4, according to Asset Insight’s Market Report (AI<sup>2</sup> Market Report) covering Q3.
At year-end 2017, market demand, across all segments of the business aircraft market, remained relatively unchanged from 2016, closing the year at just below average demand, according to Asset Insight’s quarterly Market Report. Buyers were the beneficiaries of a 22% decrease in asking prices during the past year, while our tracked inventory fleet ended 2017 in the “Very Good” Asset Quality range.