Asking prices for categories of pre-owned business aircraft tracked by Asset Insight are at a 12-month high, having risen by an average of $70,000 over the first quarter of 2015 compared with the end of 2014. But in its Asset Insight Index Market Report for the first quarter, the U.S. company warned that rising maintenance costs and aging of the “for sale” fleet have increased the overall maintenance cost exposure for the available aircraft.
"The big story for Q1 2015 is the Asset Exposure to ask price ratios, or ETP ratios (an aircraft’s maintenance exposure divided by its ask price), we are seeing across the fleet of available assets,” commented Asset Insight president Tony Kioussis. “While it is true that ask prices are at a 12-month high and asset quality ratings have improved, the latest industry maintenance cost figures combined with the aging of the fleet pose serious aircraft valuation hazards. It is more important than ever for buyers and sellers alike to do their homework and be well informed when structuring transactions.”