Prices in the secondary market are falling

According to the latest report from Asset Insight, as regards the state of the business aviation market, last quarter, prices for used aircraft continued to fall, but in the last year they fell by 22.6%.

“During the fourth quarter, the average asking price in the business jets secondary market fell by 6.6%, with all segments of aircraft registering a decline,” the company’s experts said.

The steady decline “is mainly due to the number of available aircraft and the preference for buyers of better quality assets, which, surprisingly, require higher prices,” Asset Insight reports. The positive point was that last year in most categories the spread between the requested prices and the sale price was reduced.

Looking at the data by category, the asking prices for business jets with a large cabin decreased by 25.1% last year, whereas in December 2017, as compared to December 2016, the difference between the requested price and the sale price fell by 0.2% up to 12.3%. Prices for medium-sized jets fell by 10.1%, and the gap in the requested and the price of the deal decreased by 0.6%, to 14.9%. As regards the light business aircraft segment, the requested prices fell by 16.8%, and the gap with the final price decreased by 0.4%, to 7.7%. The cost of turboprop aircraft fell by 2.5%, and the price gap fell by 0.7%, to 9.0%.

The company, which tracks transactions with approximately 90 “modern” models of business jets, recorded 1,710 aircraft in the secondary market at the end of December.

Source – http://www.bizavnews.ru/

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