The fever pace of business aircraft sales in 2021 is clearly reflected in the Asset Insight Q3 AI2 2021 Market Report.
Demand in Q3, at 68% over Q2 2021, was at a record high level for all aircraft groups. Sales volume in Q3 increased just 1.5% over Q2, but was up 18% through Q3 2021 vs. Q3 2020. The Q3 AI2 Market Report covers 134 fixed-wing models and 1,190 aircraft listed for sale.
“In our last Market Report, the laws of supply and demand seemed to have been paused with demand increasing for a smaller and smaller pool of aircraft, while prices continued to fall,” said Tony Kioussis, president of Asset Insight, LLC.
“Traditional economic forces appear to have regained their footing as the selling frenzy continues to reduce the fleet of available aircraft, and in Q3 prices began to rise. It’s more important than ever, however, that buyers have clear and accurate data about the aircraft they’re considering as the quality of the for-sale fleet has been picked over with available aircraft often carrying the promise of higher future maintenance costs.”
The average Ask Price trend, led by the Large and Mid-Size Jets, appears to have made a turn in September and is on the rise again. The overall Quality Rating worsened during Q3, with all categories showing a decline in quality, except for Light Jets, which improved slightly. There are a group of aircraft that are less attractive (with a lower Quality Rating and a daunting amount of future Maintenance Exposure), that have now driven the quality of the for-sale fleet out of the “Excellent” range and down into “Very Good” territory.
Referencing the speed by which some aircraft are selling, Tony Kioussis notes, “The small pool of less attractive aircraft are also driving the number of average days on the market up, now to 407 days, which is not reflective of the unprecedented pace by which newer, higher quality aircraft are selling.”