Business & GA

JetNet Reports Continued ‘Buyer’s Market’ in 2016 Financial Results

By S.L. Fuller | February 9, 2017

JetNet

Photo: JetNet

JetNet recently released its December 2016 and 2016 year-end results for the pre-owned business jet, business turboprop, helicopter and commercial airliner markets. Here are some key takeaways:

  • Most market sectors showed lower inventory for sale, with fewer full-sale transactions in 2016 compared to 2015.

  • Fleet for sale percentages for all market sectors, except for piston helicopters, were lower in December 2016 compared to December 2015. Business jets and business turboprops were down the most at 0.5% and 0.7%, respectively.
  • Across all market sectors, Jetnet is reporting 8,278 full retail sale transactions, including leases, for 2016. This is a 7% decrease from 2015.
  • Business jets were almost 2,500 transactions in 2016, and when combined with commercial airliners at 1,882 transactions, accounted for 52% of the total of 8,278 transactions recorded in 2016.
  • Business jets and business turboprops are taking less time to sell (9 days and 22 days, respectively) than last year. Consider, though, a 7.3% decrease in average asking price and a 7.3% decrease in retail sale transaction for business jets; as well as a 0.2% increase in retail sale transactions and an increase of 0.9% for business turboprops.
  • When compared to 2015, 2016 showed a minute decrease in pre-owned business jet market “for sale.” Jetnet says, though, that there must be a reduction of more than 200 business jets “for sale,” or a similar reduction in the number of business jets in operation, in order to see a seller’s market.
  • 2016 full retail sale transactions, including leases (recorded as of January 30, 2017), dropped to 2,442, or -7.3%, ending six consecutive years of increases. Jetnet says this could be a sign that the pre-owned market is changing direction.
  • There were across-the-board reductions in all business jet transactions by weight class, totaling -193, or -7.3%, in 2016 compared to 2015. The light weight class had the largest number of transactions in 2016, while heavy saw the least.

“The recovery in business aviation during the post-recession period has been underwhelming,” JetNet summarizes. “Now that 2017 is here, there is hope that the U.S. pre-owned market, along with improvements in the world economy, will continue to push more new aircraft purchases in the new year. As for now, it continues to be a buyer’s market environment, with pre-owned for sale inventories running at 11%.”

Receive the latest avionics news right to your inbox

Curated By Logo