JetNet: Bizjet Inventory Takes 'Step Backwards' in 1Q

In general, pre-owned business aircraft “inventories are up and asking prices are down,” according to industry data firm JetNet. Business jets showed the largest rise in inventory, with 155 more jets on the market at the end of this first quarter versus a year earlier. “While this increase is a far cry from the pronounced spike of 2009, the first quarter of 2016 must be regarded as at least a disappointing step backwards for the business jet market,” said JetNet.

At the end of last month, 11.7 percent of the in-service business jet fleet was for sale, up from 11.4 percent last year, JetNet said. Business jet retail sale transactions in the quarter showed a 4.4-percent year-over-year uptick but they are taking 11 more days—at 330 days—even with a 12.8-percent reduction in average asking price.

JetNet data shows that the number of business turboprops for sale climbed by 109 year-over-year, taking inventory up by 0.6 points, to 8.5 percent at the end of April. Business turboprop sales transactions dropped by 12.1 percent from a year ago, accompanied by a 9.1-percent descent in asking price. However, these airplanes are selling more quickly, averaging 289 days on the market, 30 fewer than last year.

Turbine helicopter inventory crept up by 122 at the end of the quarter for a 0.3-point overall increase, to 6.8 percent of the fleet. Sale transactions of turbine helicopters in the quarter fell by 19.8 percent, while prices were slashed by 25.5 percent. Average number of days on the market declined by 45, but is still high at 455 days.