In the last Flight Levels, we questioned whether or not stability was returning to the market for pre-owned turbine aircraft, specifically the Commander JetProp fleet. (See http://www.flightlevelsonline.com/issues/fall12/article/market-report.html)
As buyers and sellers find their stride in 2013, we observe a better picture of the market’s equilibrium and stability for most models.
Let’s review the particulars on the market supply for the various Commander turboprop models. The following statistics are based on market data provider Jetnet, as well as our own internal research.
690: 0 of 45 available
690A: 17 available or 9.5% of active fleet for sale, with 3-4 sold per month over the previous 6 months. Average days on the market recently reached a low of 200 days, compared to more than 400 days just 12 months ago.
690B: 18 available or 9.5% of active fleet, which is identical to percentage of 690A fleet on the market.
840: 8 available, or 7.7% of 840s in operation. The percentage of 840s available has remained consistent from 2009-2013, except for an uptick in 2011.
980: 1 of 71 available, or 1.4 % of active aircraft.
900: 1 of 34 available, or 2.5% of the 900 fleet
1000: 9 available, or 9% of the flying 1000 fleet. Approximately 100 of the 113 1000s that were built remain active.
Both buyers and sellers are willing parties. We are seeing the volume of transactions and call activity up. And with current pricing levels, inventories are down under 10%, a level that traditionally marks the point separating buyers’ and sellers’ markets – inventories of more than 10 percent of the available fleet of a particular segment or model is seen as a buyers’ market, while less than 10 percent is seen as a sellers’ market.
It’s not exact science, of course; buyers demand well-kept and updated airplanes, and the market numbers alone don’t tell the level of updates on any given aircraft or model. But the big market picture is promising .We fully expect the trend of strong activity to continue through 2013.
Bruce Byerly is vice president at Naples Jet Center and a long-time Twin Commander sales professional.