The used helicopter market recovered enough in the second half of last year to outperform dismal 2019 unit sales volumes, concluded Toronto-based consultancy Aero Asset in its year-end 2020 market analysis. “Markets showed incredible resilience in Q3 and Q4,” the company noted. “Overall, 2020 preowned retail sales volume (number of units) rose by 10 percent year-over-year and 2020 saw the most retail transactions in the last four years.”
Aero Asset said supply rose 8 percent year-over-year and the overall absorption rate was fairly constant, contracting to 20.5 months from 21 months in 2019. Altogether, 143 used helicopters sold last year worth $516 million out of 245 offered for sale valued at about $1 billion.
The rebound was led by a sharp increase in both the prices and sales volumes for Sikorsky S-92 and Airbus H225 heavy twins, many of which had been parked after their values collapsed to near-scrap prices as demand evaporated with the contraction of the offshore energy market. Many of those helicopters have now returned to service, albeit with new owners and missions.
For all of 2020, 18 heavies changed hands—compared with just 10 in 2019—representing 12 percent of all units sold in 2020 and 20 percent of the aggregate transaction value for the entire used helicopter market. Their sale prices averaged $5.1 million.
Meanwhile, the medium twin sale price averaged $4.6 million and accounted for 40 percent of the used market’s value and 30 percent of units sold, with the Leonardo AW139 leading the way. Light singles and twins held steady, representing 58 percent of all units sold. Aero Asset forecasts that the used market will continue to improve in 2021.