Market Update: Twin Commander
Values Stabilize
After a couple of years of some of the worst market conditions general aviation has seen in many decades, the free-fall in prices and build-up in inventories seems to be slowing. That's the big picture. But what about our favorite brand? Bruce Byerly, a long-time and successful Twin Commander salesman, offers the following observations about the Twin Commander market.
When I moved to Naples, Florida, in the fall of 2007 to help open Naples Jet Center, life was good and aircraft values across the board were strong and relatively stable. Of course, the world changed rapidly, with substantial worldwide volatility and economic turmoil, not to mention negative press and political pressure on operators of large corporate aircraft. Aircraft of all shapes and sizes remain under pressure as a few troubled sellers and overall sluggish business aircraft demand continue to negatively impact values of all aircraft. Fortunately, there is a stable if not increasing demand for the legacy Twin Commander aircraft.
Both popular aircraft value guides, the Aircraft Bluebook-Price Digest and Vref Aircraft Value Reference show stable pricing trends for all Twin Commander models. It is our experience that sales activity is up and all signs support the Bluebook and Vref conclusions. What the books don�t tell you, however, is the importance of quality service and pedigree to the sale of an aircraft. Without question, the well-maintained airplane sells quicker and for a higher price.
For a more in-depth look at the Twin Commander market, let�s take a look at the 840 (690C) and 980 (695) segment.
These two JetProp models were certified by Rockwell International in 1979 and went into production that same year. (The Commander line was subsequently taken over by Gulfstream Aerospace.) As with all Commander twins, the type certificates currently are held by Twin Commander Aircraft Corporation LLC of Creedmoor, North Carolina.
The 980 was factory-equipped with TPE331-10-511K engines while the 840 models were manufactured with the lower thermodynamic capacity Dash 5-254K engines. 840s are a popular candidate for the Dash10T engine modification, effectively equalizing the performance differential between the two models.
For the purposes of our brief review, the Dash 10T-modified aircraft can be considered equivalent to the 980. Rockwell and Gulfstream built 206 690Cs and 695s from 1979 until 1984. Of the 206 built, approximately170 were still in operation as of March 11, 2010. Some 13 percent (27) of 840/980 aircraft have been reported as written off, withdrawn from use, or are otherwise known to be out of service. Of the 170 active aircraft, 57 percent (97) operate outside of the United States.
Currently, there are 12 690Cs and 695s on the market, which represents 7 percent of the active fleet. Asking prices range from $599,000 to $1,600,000, with airframe times ranging from as low as 3,641 hours up to 7,220 hours.
Direct competition includes the 900 (690D) and 1000 (695A) Commanders, of which 11 of the 134 built currently are available on the market. Of the 134 in the fleet, 54 operate in the United States.
What does this mean to you and me? In short, there are very few 840/980s for sale. In my lifetime of flying, supporting, and selling Commanders that�s normal. What�s interesting today, however, is the availability of several good choices at attractive prices. It�s a great time to be a buyer. And for the sellers in today�s market, the values of the 840/980 have held up relatively well compared to most other aircraft. For example, the Citation 500/501 market has 26 percent of the available fleet for sale, with pricing commonly 50 percent off of market highs of just two years ago. That�s a big contrast. The high fuel consumption of legacy jets (typically double on any given trip) is one important negative factor for buyers who look to upgrade to a turbine-powered aircraft.
Interestingly, although prices have certainly fallen, the broad market appeal, good support, and economy of the the JetProp lineup have made for steady demand throughout the market chaos. On the flip side, there was a time�from late 2007 to early 2009�when no 1000s were sold. No sellers were willing to meet the market or motivated to set a low price. However, over the last year that market has become very active once again, with approximately 10 percent of the domestic fleet changing hands. That's a dramatic turnaround.
Whether you�re considering an entry-level 690A or B or a top-of-the-line 1000, Commanders offer excellent efficiency, handling qualities, safety margins, and insurability, and are backed by a tremendous support network. All of these factors make considering a Twin Commander turboprop a smart decision going forward.
R. Bruce Byerly is a partner in the Naples Jet Center in Naples, Florida, a full-service sales and maintenance facility and Authorized Twin Commander Service Center. An active 7,000-hour-plus pilot, he holds an ATP certificate with rotorcraft and jet type ratings and has flown well over 100 different Twin Commander aircraft worldwide. He can be reached at 239-649-7900 or via email: [email protected].
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