AvBuyer Magazine – August 2019

Large Jets

Medium Jets

Asset Insight analytics (www.assetinsight.com)

5.165

5.000

5.100

5.200

5.300

Jul-18Aug-18Sep-18Oct-18Nov-18Dec-18Jan-19Feb-19Mar-19Apr-19

May-19Jun-19

$2.72

$1.26

$1.10

$1.15

$1.20

$1.25

$1.30

$1.35

$2.30

$2.50

$2.70

$2.90

Jul-18Aug-18Sep-18Oct-18Nov-18Dec-18Jan-19Feb-19Mar-19Apr-19May-19Jun-19

group’s all-time highest (worst) Ratio at 56.6%. Small Jets were

third with a Ratio of 68.8% while Medium Jets improved slightly,

decreasing to 75.2%.

Market Summary

Following three consecutive monthly increases, average Ask

Prices decreased in June to just above the 12-month low figure.

At the same time, asset availability rose to four units shy of

April’s year-to-date high inventory figure.

While this may create some opportunities for buyers, sellers

must swallow hard and quite possibly accept a price they never

thought they would.

Large Jets: Availability expanded by 21 units in June. Between

departures and additions to inventory, the new mix has led to a

12-month high (best) Quality Rating, along with a near 12-month

low (best) Maintenance Exposure figure.

At the same time, the average Ask Price hit a record low figure

in June, as values decreased 8% during Q2 (and -13.3% since

December 2018). Sellers may not be happy, but buyers have

some of the best opportunities this year to extract real value out

of a deal – assuming they run the necessary analytics.

Medium Jets:Asset quality improved nearly one percent in

June and over 2.8% during Q2, while Maintenance Exposure

improved 4% and 1.4% during the same time periods.

Six units joined the inventory fleet, and while all this

jockeying did not dramatically improve the group’s ETP

Ratio, June’s figure was at least better than the 12-month

average, which will undoubtedly help some sellers.

As for buyers, average Ask Price receded 1.3% in June,

but the group’s values appear to be holding well with an

increase of 7.5% during Q2 and 11.2% since December

2018. If you’re in the market for one of these aircraft, take
      care not to select a lower-priced asset at the expense of
      true value.

$ Millions

5.602

5 .200

5.300

5 .400

5.500

5.600

5 .700

Jul-18Aug-18Sep-18Oct-18Nov-18Dec-18Jan-19Feb-19Mar-19Apr-19

May-19Jun-19

$10.3

$3.23

$3.10

$3.20

$3.30

$3.40

$3.50

$3.60

$10.0

$11.0

$12.0

Jul-18Aug-18Sep-18Oct-18Nov-18Dec-18Jan-19Feb-19Mar-19Apr-19

May-19Jun-19

Ask Price vs. Maintenance Exposure

$ Millions

Asset Quality Rating

Scale -2.500 to 10.000

Asset Quality Rating

Scale -2.500 to 10.000

Ask Price vs. Maintenance Exposure

$ Millions

26
Vol 23 Issue 8 2019
AVBUYERMAGAZINE http://www.AVBUYER.com

MARKET INDICATORS

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