The third quarter of 2020 has seen a 71% rise in pre-owned business aircraft transactions, according to the latest AI2 Market Report from Asset Insight. The report covers 134 fixed-wing models and 2,247 aircraft listed for sale. Findings include an improvement in asking prices, except for in the large jet category. Asset Insight found medium jets posting a 12-month high in September 2020.
While the market reached its peak 2020 transaction volume in the third quarter, other data points remained below the level of the third quarter of 2019. Asset Insight noted quality ratings worsened (decreased) during the third quarter as compared to the second quarter, but the average quality rating across the for-sale fleet remains solidly within the ‘excellent’ range. Asset Insight said that 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. “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 also recently launched a podcast series covering the aircraft ownership lifecycle.
