It’s still all a little hard to believe. Despite widespread downturns in economies around the world, general aviation continues to hold its own with flight activity strong in most areas and businesses generally doing well. That also holds true in the used aircraft market, where the light end is thriving.
According to Bruce Byerly and Eagle Creek Aviation’s Jim Worrell, the Twin Commander market is equally strong. As in previous quarters, supply is tight on late-model refurbished aircraft. “The late-model 1000s are always going to be desirable,” Worrell said. Also contributing to the supply dynamics in the United States is a slow and steady stream of airplanes being sold for export or being deregistered. Worrell said in just the last year around 15 percent of the fleet has come off the FAA registry. He estimates there are around 575 turbine Commander aircraft in service worldwide right now.
That, and a long line of buyers have contributed to higher prices on certain models. “Good airplanes are selling immediately,” Byerly said. “Because of that we’re seeing some upward pressure on prices.” Although he was quick to point out that airplanes priced unreasonably high will remain on the market for longer.
Always an optimist, Byerly said, “Right now I would say I don’t think I’ve ever seen it stronger in terms of activity and interest.” And at the time we spoke, Worrell had recently closed on two airplanes, had one that was expected to close in a few weeks, and had an offer on another. He chalks up some of the recent uptick on the stimulus. A few thousand dollars in the bank might not prompt someone to buy an airplane, but forecasts of stability for their business may.
With increasing pressure on supply, it would seem likely that more buyers would be willing to consider airframes needing refurbishment. But that presents a problem, according to Byerly. Because shops are so busy now, he said he’s getting resistance from potential buyers who don’t want to wait to get on the schedule to get the work done.
Although still not at 2005 pricing levels, in general the market looks strong and healthy from all angles. Given what’s going on in the broader economy, there’s no reason to think that will change anytime soon.
