Market Dynamics - 2019 Q2

PRE-OWNED BUSINESS JETS FOR SALE

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SUPPLY / DEMAND INDICATORS

BUSINESS JETS

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The above chart reflects where certain aircraft models are positioned in terms of supply and demand (based on a ratio of completed transactions compared to the number of sellers and the average number of days on the market for a transaction to take place).

For some model types, given the market indicators shown on the previous page, the stabilization in pre-owned asking prices and decline in inventory level appear to have stimulated increased demand, leading to an increase in transactions and a more balanced state of supply and demand.

These indications do not necessarily mean that prices will be higher in the future, but it does indicate that sellers of these particular models are more likely to find willing buyers in a shorter period of time than the overall average.

This can be seen most with certain Gulfstream (G200, G450, G550,G650), Bombardier models (Challenger 604/605 & Global 5000) and Dassault Falcon models (2000 Series and 7X), where more transactions are occurring relative to the number for sale, and transactions are requiring less time on the market for sellers to complete.

MARKET POSITIONING

BUSINESS JETS

* ASG chose 26 popular aircraft models as described in this report

* ASG chose 26 popular aircraft models as described in this report


The above chart provides a visual representation of the Supply / Demand Ratio of each aircraft model relative to the overall market, and is based on a ‘Marketability’ calculation for each particular model including the following four market indicators:

  1. The percentage of aircraft for sale relative to its fleet size.

  2. The number of aircraft sold relative to the average number for sale.

  3. The average days for sale relative to the overall market average.

  4. The momentum of the marketplace (represented by the trend towards supply and demand market equilibrium portrayed earlier).

When taking into account these four factors, most of the the large and medium sized jets, such as Challenger 600, Falcon 2000 & 900 Series, as well as the various Gulfstream models, appear better positioned to find buyers available, compare to corporate airliner models.

PRE-OWNED CIVIL HELICOPTERS FOR SALE

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SUPPLY / DEMAND INDICATORS

CIVIL HELICOPTERS

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The above chart reflects where certain aircraft models are positioned in terms of supply and demand (based on a ration of completed transactions compared to the number of sellers, and average number of days on the market for a transaction to take place).

Market Positioning

Civil Helicopters

Source: JETNET & ASG

Source: JETNET & ASG

The above chart provides a visual representation of the Supply / Demand Ratio of each aircraft model relative to the overall market, resulting in a ‘Marketability’ calculation of each particular model based on the following four market indicators:

  1. The percentage of aircraft for sale relative to its fleet size.

  2. The number of aircraft sold relative to the average number for sale.

  3. The average days for sale relative to the overall market average.

  4. The momentum of the marketplace (represented by the trend towards supply and demand market equilibrium portrayed earlier).

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