Market indicators signal improved fleet marketability while demand is at a two year low

Terry Spruce
By Terry Spruce August 2, 2019 09:45

Market indicators signal improved fleet marketability while demand is at a two year low

July 29, 2019 – According to Asset Insight’s Q2 2019 market report (AI2 Market Report), demand fell through the second quarter, posting a two-year low due to aging inventory, and prices continued their downward trajectory. However, the ETP ratio improved as did the average number of days on the market for the for-sale fleet, appearing to signal improved fleet marketability.

The 2Q 2019 AI2 Market Report analyses values for every production year of every modern make and model Business Class aircraft, while the Report’s maintenance analytics cover 96 fixed-wing models and 1,680 aircraft listed for sale.

Other trends detailed in the 2Q 2019 Market Report include:

  • Ask Prices decreased for all categories of aircraft except Medium Jets through the first half of 2019,
  • Buyer’s and Seller’s expectations came closer together for three of the four tracked groups,
  • Even though the average age of the for-sale fleet continued to climb, the fleet’s Quality Rating remained in the “very good” range,
  • Maintenance Exposure (an aircraft’s accumulated/embedded maintenance expense) for the inventory fleet improved on average.

“The quarter over quarter 90-day value eTrend forecasts average prices will continue to decrease, albeit more slowly than recent periods, for all categories of aircraft, except for Medium Jets, which our forecasts indicate will see more rapidly decreasing prices in the next 90-days” said Tony Kioussis, president of Asset Insight, LLC. “Aircraft on the market continue to be of Very Good quality, and with prices continuing to decrease, buyers could have some excellent opportunities for optimum deals.”

Terry Spruce
By Terry Spruce August 2, 2019 09:45

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