Contributed by Carl Janssens, Editor and Chief Appraiser for Aircraft Bluebook-Price Digest
The pre-owned aircraft market is being re-defined by the velocity of transactions. It takes more than just a few transactions to make the pre-owned market move in the right direction. Price is always a concern. Sellers want maximum return on their assets. Buyers want compensation for future values up front — in the form of discounts.
Similar to the way politics are supposed to work (somewhere in the middle), at least in the playing field of an aircraft sales deal, a resolution is made and a sale is complete. Both buyer and seller may not be happy, but the best outcome was agreed upon by both parties, while supply and demand referee.
When it comes to the bottom line, the question should be: was the business tool, the corporate aircraft, a needed asset in growing profits by its ability to move folks in an efficient and timely manner? The answer will always be “yes.” Walking around sock-footed and beltless takes time, and time is money. Sure, things could be better. Corporations could become more confident in the economy and make some capital investments in their transportation budget, and a legislative agenda for growing the economy could be revealed by President Obama. But none of that looks like it’s going to happen any time soon. One can always hope for better times … but don’t neglect the opportunities that are still available now.
Our research shows a market in motion. Prices for pre-owned aircraft continue to decrease quarter-to-quarter in the jet and turboprop categories. Days on market for properly priced aircraft are moving on to new owners in a matter of months. Movement is good.
Fixed-wing single and multi-engine values remain stable, while the helicopter segment also is reporting a majority of models with no change in values, when compared to the previous quarter. For more information, see the Aircraft Bluebook--Price Digest Marketline newsletter at http://www.aircraftbluebook.com/.
Aircraft Bluebook provides an aircraft valuation guide and aircraft appraisal services for the general and business aircraft marketplace. Aircraft Bluebook-Price Digest includes more than 3,000 specific-year models of general aviation aircraft that are thoroughly researched each quarter. For more information, visit the Aircraft Bluebook website at www.aircraftbluebook.com.
Carl Janssens joined the Aircraft Bluebook staff in 1999 as Associate Editor and is currently the Editor. He is an accredited Senior Appraiser under the ASA MTS / Aircraft Specialty discipline. Carl holds a bachelor’s degree in criminal justice from Avila University in Kansas City, Missouri, and is an FAA-licensed, instrument-rated pilot.