A shrinking inventory of newer
preowned business
jets and turboprops is threatening overall values as the remaining for-sale
fleet gives way to older, harder-to-sell aircraft, according to Asset Insight’s
first quarter 2019 Market Report that was released late last week. The report
analyzes values for every production year of modern make and model business
aircraft listed for sale during the period.
During the first quarter, overall
demand—measured by days on the market and percent of the make and model fleet
for sale—improved slightly, helped by large-cabin and midsize business
aircraft, while asking prices for midsize and light jets rose by 3.4 percent
and 1.6 percent, respectively. But as a whole, the overall value of the
report’s tracked pre-owned fleet decreased 5 percent in the three-month period.
Business
jet market report offers a detailed analysis of the light, mid-sized, and
large aircraft type.
Key players in this market are
Bombardier Inc. (Canada), Gulfstream Aerospace Corporation (U.S.), Cessna
Aircraft Company (U.S.), Dassault Aviation S.A. (France), and Embraer S.A.
(Brazil).
The business jet market is
segmented into three broad segments namely; Light jet, Mid-size jet, and large
jet. The light and mid-size jet segment is expected to show considerable growth
by 2020.
As the for-sale fleet of business
aircraft continues to trend older, asking prices are expected to slide because
of a decline in fleet quality and an increase in maintenance exposure,
according to the Las Vegas-based firm’s report..WIKI
“Newer aircraft continue to sell
quickly and for solid prices, but there are fewer and fewer of those low-time,
high-quality aircraft available on the market,” said Asset Insight president
Tony Kioussis. “Buyers could see real opportunities in the second quarter for
older, higher-time aircraft, as we expect prices to continue to decline across
all market segments.”
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