Business Aviation Market Intelligence

Global Pre-owned Market Update – Asian Sky Quarterly 2022 Q1

by Global Sky Team

Global Pre-owned Market Update – Asian Sky Quarterly 2022 Q1

With preowned inventory so low and resale retail transactions continuing to outperform, good aircraft are selling quickly, and buyers have no choice but to pay a premium if they want to win the desired aircraft.

As to the whether the momentum of 2021 continues throughout 2022, the sad and tragic events in Ukraine are the wild card as it remains to see how things fully play out. Assuming we don’t see a broader European conflict, we would anticipate seeing robust demand and higher values continuing through the end of 2022.

Andrew Young, AMSTAT General Manager

Over the past 12 months the median value of Heavy Jets has risen 34%. This metric is now up 28% since the start of 2020 and up 9% year-to-date. The overall positive direction of values has been driven by demand with a 28% increase in resale retail transactions in 2021 over 2020 and a 39% increase ahead of 2019. At the same time the availability of preowned Heavy Jets has shrunk 56% year-over-year further adding upward pressure on what buyers are having to pay.

Since March 2021, the median value of Super-Mid Jets has risen up to 44%. This same metric is up 35% since the start of 2020 and up 9% year-to-date. The positive direction of values is in large part in 2021 over 2020 and a 39% increase ahead of 2019. At the same time the availability of preowned Heavy Jets has shrunk 56% year-over-year further adding upward pressure on what buyers are having to pay. due to the continued momentum in resale transactions, with 2021 activity up 29% over 2020 and up 66% over 2019, with a 65% drop in Super-Mid Jet resale inventory.

The median value of Medium Jets has risen to 52% over the last year. This metric is now up 34% since the start of 2020 and is up 18% year-to-date. As with other jet segments this upward trend continues to be driven by high demand and low supply. Medium Jet resale retail transaction activities in 2021 was up 19% over 2020 and up 40% over 2019. The availability of preowned Medium Jets is down 56% year-over-year.

Over the past 12 months, the median value of Light Jets has risen 37%. This metric is now up 18% since the start of 2020 and is up 6% year-to-date. The positive direction of Light Jet values is in large part due to the continued buoyancy in resale retail transactions with 2021 up 28% over 2020 and up 49% over 2019. This demand combined with a 50% drop in Light Jet resale inventory year-over year has continued to drive values upwards.

The median value of Turboprops has risen 33% over the last 12 months. This metric is now up 27% since the start of 2020 but has remained largely unchanged year-to-date. There is no evidence that this recent plateau in values is due to a slowing of transaction activity with Turboprop resale transaction activity in 2021 up 25% over 2020 and up 32% over 2019. As with the other markets here, options for buyers are fewer in the preowned Turboprop market with a 45% drop in available units year-over-year.

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