Aircraft Bluebook Marketline Newsletter

Entries in Bombardier Global Express (2)

PRE-OWNED AIRCRAFT TRADING CONTINUES AT MODEST PACE

Friday, December 10, 2010 at 10:44AM

Vol. 23, No. 4 | Dec. 10, 2010 | Go to Charts
by Carl Janssens, ASA | Aircraft Bluebook — Price Digest

Trading in the pre-owned aircraft market continued at a modest pace as the third quarter came to a close and aligned itself on fourth-quarter activity for 2010.

Inventories available for sale grew slightly. Also noteworthy was the decrease of aircraft being sold with minimal time-in-market exposure. Days on market were significantly higher, which allowed a better opportunity to fetch maximum value in current market conditions. Time and condition also contributed to being a variable in the equation. Well-equipped, ready-to-fly aircraft had the largest audience of interest. Price competition remained limited. Sale prices continued in a downward trend or remained stagnant according the particular model group.

Several noted outside indicators have a relationship to the health of the pre-owned aircraft market. The General Aviation Manufacturers Association (GAMA) reported that shipments of turboprops and business jets manufactured worldwide were down when compared to the same time frame in 2009. Large fleet sales, such as those announced by Embraer recently, will have a future impact on pre-owned inventories when new deliveries replace current aircraft.

On other economic fronts, the $600 billion Federal Reserve QE2 (second round of quantitative easing) has yet to be observed as an action that will create growth in the business aviation sector.

On related business fronts, brokers dealing with the sale of corporations and businesses are reporting more activity with transactions closing after a long drought. Opportunities to do business are again starting to flourish.

Jet

Bluebook-at-a-glance
Increased — 14
Decreased — 502
Stable — 370

Bombardier Global Express experienced a $1 million upward trend for select model years. Bombardier Challengers were trending downward for the most part. Late-model Gulfstream G-550s were reported with a $1 million positive trend when compared to the fall Aircraft Bluebook. The Citation X was off a half million while the Sovereign was also down about $400,000. Depending on the model, most Dassault Falcons were also off when compared to the last quarter. The Hawker 800 was down $300,000. Light jets, such as the Cessna 525 were generally trending downward. Legacy Citation aircraft, such as the Citation II, were also off by about $100,000.

Turboprop

Bluebook-at-a-glance
Increased — 40
Decreased — 111
Stable — 444

The DeHavilland Twin Otter DHC-6 again trended upward when compared to the previous quarter. The Piper Meridian PA 46TP was raised $100,000 for the winter Bluebook. Select model years of the Piaggio P180 were also up in value. Legacy aircraft, such as the Cessna Conquest and Fairchild Metro, were down for this reporting period. Select late-model Beechcraft King Airs were also down. The majority of turboprop aircraft reported in Bluebook remained stable.

Multi

Bluebook-at-a-glance
Increased — 14
Decreased — 106
Stable — 534

Positive gains were limited for the multi engine category. Select 340s and 414s were up about $5000. The Twin Commander Fuji 700 increased by $10,000. Most Beech Barons were off about $5000. Select Piper Twins were also down an average of $5000. Values for the majority of the multi engine category remained unchanged.

Single

Bluebook-at-a-glance
Increased — 323
Decreased — 261
Stable — 1913

Bellanca experienced some positive gains. Average retail prices for select models were up slightly from the previous quarter. See the Bluebook for details.

Select legacy Cessna and Piper singles also had minor increases when compared to the previous quarter. The majority of the single engine market segment remained unchanged.

Helicopter

Bluebook-at-a-glance
Increased — 20
Decreased — 197
Stable — 831

The Bell 205 trended upward for the winter edition of Aircraft Bluebook. The Enstrom 480 also improved in retail value when compared to the previous quarter. The majority of the helicopter segment remained unchanged.

Aircraft Bluebook–Price Digest here for you

Please contact Aircraft Bluebook if you have any specific concern in a particular aircraft market. We will be happy to share with you the most up-to-date information available for your market segment. Call us toll-free at 877-531-1450 or direct at 913-967-1913.

[Go to Charts.]

Aircraft Bluebook Marketline |

PRE-OWNED AIRCRAFT TRANSACTIONS INCREASE WHILE VALUES DECREASE

Wednesday, September 1, 2010 at 12:00PM

Vol. 23, No. 3 | Aug. 18, 2010 | Go to Charts

by Carl Janssens, ASA | Aircraft Bluebook — Price Digest

There should be some optimism in our industry.

Buyers and sellers are finally coming to terms with what the market will bear for a given aircraft. And with that, the pre-owned aircraft market is seeing more completed deals. The gridlock of available inventory is starting to show some movement.

Values, on the other hand, remain soft with few signs of recovery.

Some of the factors that could be making an indirect impact on values relate to finance. Major lenders are adapting to the 20-year rule. That is, the age of the aircraft and term of the loan cannot exceed 20 years. Prior to the economic meltdown, it was a 30-year rule. Of course, there are exceptions to every rule, but this 20-year rule will continue to have a softening effect on value in the pre-owned market.

Another factor that might have a driving effect is the increase in cash buyers. Cash is a hard snare to turn away from if you are selling an aircraft. In return, the cash buyer will demand exceptional equipment at a discounted price.

To a lesser extent, aircraft foreclosures might have an impact on the industry. Time and condition do account for values in the marketplace. If an aircraft is sold outside the box of reason, then civil litigation will probably ensue.

You, the market itself, the live dynamics of what makes this whole process happen, may have your own opinion too. Let us know your thoughts.

Jet

Bluebook-at-a-glance
Increased — 3
Decreased — 595
Stable — 281

Late-model, large-cabin aircraft are retaining value. The medium-range business jet, such as the Lear 45 series and the Hawker 800 series, continues to show signs of normal depreciation.

Citation X and the Sovereign were off from last quarter. Bombardier Global Express and the 5000 remained steady while the Challenger 604 declined. The Falcon 7X held steady, but the Falcon 50 was down. Values for late-model Gulfstreams held steady, yet values for earlier models were off.

Turboprop

Bluebook-at-a-glance
Increased — 25
Decreased — 135
Stable — 434

The ag market still rules in this category because the very boutique and limited markets hold on to value.

One surprise this quarter is the DeHavilland Twin Otter DHC-6. Limited inventories, great demand and a new production line have brought a burst of life into the values of these aircraft. Check the values in the new fall 2010 release of Aircraft Bluebook.

Late-model King Airs were down slightly.

Multi

Bluebook-at-a-glance
Increased — 12
Decreased — 26
Stable — 618

Time and condition will play the upper hand in this market, especially when dealing with aging aircraft. Anything more than 20 years old in this market is a senior citizen. For the most part, values for this segment remained unmoved when compared to the previous quarter.

Single

Bluebook-at-a-glance
Increased — 217
Decreased — 200
Stable — 2078

As with their twin brethren, time and condition also have the upper hand in supporting value. Do not just look at the sale price. Also pay close attention to restorations, upgrades and modifications.

For the most part, the single category was stable.

Helicopter

Bluebook-at-a-glance
Increased — 57
Decreased — 221
Stable — 761

Helicopters are continuing to show some signs of stabilization with the majority of this segment remaining unchanged in reported values when compared to the previous quarter.