OCTOBER 23, 2020 – In a dramatic flurry of activity, the Asset Insight AI2 Market Report details a 71% increase in pre-owned business aircraft transactions during the third quarter of 2020. Except for Large Jets, indicators show that ask prices improved, with Medium Jets posting a 12-month high in September. The Q3 AI2 Market Report covers 134 fixed-wing models and 2,247 aircraft listed for sale.
While the market reached its peak 2020 transaction volume in Q3, other data points remained below the Q3 2019 level. Quality Rating worsened (decreased) during Q3 as compared to Q2, but the Average Quality Rating across the for-sale fleet remains solidly within the Excellent range. Buyer preference for higher quality Jets has impacted available inventory resulting in a decrease to the overall quality of the for-sale Jet fleet, even as the Quality Rating for available Turboprops improved.
“While activity in the pre-owned business aircraft market is at its peak for the year, we still have a lot of ground to make up in these COVID-19 times,” said Tony Kioussis, president of Asset Insight, LLC. “Logically, buyers prefer lower-time and higher-quality aircraft, which is increasing, meaning worsening, the average Maintenance Exposure for the remaining Jet inventory. The remaining aircraft are also spending significantly more Days on Market available for sale. Turboprops, however, are seeing an improvement unique to the market, with both Quality Rating and Maintenance Exposure improving.”
Asset Insight has also recently launched a new podcast series covering the Aircraft Ownership Lifecycle, offering the business aviation community the opportunity to select episodes and topics on its schedule, and according to each listener’s interest and business segment. There are over 20 podcasts in the Asset Insight library with episodes covering subjects of interest to aircraft buyers, sellers, owners, operators, experienced industry professionals, and those new to the industry.
Asset Insight Podcasts are available on Apple Podcasts, Spotify, Stitcher, Google Podcasts, www.assetinsight.com, www.assetinsightpodcast.com, and wherever you get your podcasts.
