With interest rates climbing and continued inflationary pressure, the financial media is starting to talk about hiring slowdowns and pumping the brakes on the past year’s staggering growth. Will that result in a peak to the crazy airplane market?
Maybe, says Eagle Creek Aviation’s Jim Worrell. He said the first half of the year has maintained a blistering pace, with six Twin Commanders deals already on the books and a few more in process. The good news has continued after the sale, as many of those immediately go into the shop for big upgrades.
At the time of this writing there were only five airplanes listed for sale on Controller, showing that supply is still tight, which is continuing to put pressure on prices. According to Vref, which tracks actual transaction values, Twin Commander values are up across the board over the last quarter. So, while prices may cool off in the future, it hasn’t happened yet.
Worrell said he thinks that if things do slow down, it won’t be by much. Market watchers like Vref agree that any correction will bring things back closer to a balanced market, and not to a slump.
In the case of Twin Commanders, that’s due to a number of factors, including continued high desirability. Worrell said many of his clients have looked elsewhere and can’t find an airframe that can do what a Twin Commander can. Other turbines are single engine, don’t have the range or speed, are double the price, or don’t enjoy the same factory support. He said people tell him, “I’ve looked around, and I’ve just decided I’m going to put my money into a Twin Commander because there’s nothing else like it.”
