Preowned twin-engine helicopter sales jumped 25 percent in 2021 but shrinking inventory slowed the deal pipeline by year-end, according to Aero Asset’s latest annual Heli Market Trends report. Released on Tuesday at Heli-Expo, the Aero Asset report further finds that the absorption rate—a factor of time it would take to exhaust supply at current trade volume—reached the lowest point in three years.
“In line with a very positive 2021 market performance, the number of twin-engine helicopters on the market at the end of Q4 2021 shrunk by 26 percent compared with the same period a year earlier,” said Valerie Pereira, Aero Asset v-p of market research. “At the same time, the deal pipeline has dried up, with a 40 percent decline, to 17 units, in the fourth quarter."
Aero Asset reported that 179 preowned twin helicopters valued at $550 million were sold in 2021, with transaction values rising 6 percent year-over-year. Nearly 70 percent of sales occurred in North America and Europe. In North America, the number of transactions jumped 65 percent.
Meanwhile, in the fourth quarter the number of twins available for sale dipped to 183 units valued at $663 million, shedding a third of the supply that was available for sale since mid-2020, Aero Asset president Emmanuel Dupuy said during a media briefing at Heli-Expo.
The available supply of twins diminished across all weight classes, even as heavy helicopter sales declined by half last year. However, light and medium twin-engine retail sales increased 40 percent year-over-year. VIP twins saw a 20 percent year-over-year bump and utility helicopter sales rose 40 percent.
According to Aero Asset, the overall absorption rate for preowned helicopters stood at one year at the end of 2021, down from 20 months a year earlier.
Considering sales, fleet size, and absorption rate, the Airbus EC/H145 was the best-performing preowned twin-engine helicopter market for the third consecutive year. This was walled by the Bell 429 and Leonardo A109S/SP. Conversely, the Airbus EC/H225 market saw a 50 percent drop in sales volume year-over-year.