AvBuyer Magazine – August 2019

Tony Kioussis is president of Asset Insight.

The company provides audit and valuation

services and has developed a standardized

Asset Grading System scale that evaluates

an aircraft’s maintenance condition.

Small Jets

Turboprops

Asset Insight analytics (www.assetinsight.com)

5.167

5 .100

5 .300

5 .500

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

May-19Jun-19

$1.78

$0.74

$0.65

$0.75

$0.85

$1.65

$1.75

$1.85

$1.95

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

4.785

4.700

4.800

4.900

5.000

5.100

5.200

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

May-19Jun-19

$1.45

$0.65

$0.50

$0.55

$0.60

$0.65

$0.70

$1.40

$1.45

$1.50

$1.55

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

May-19Jun-19

Asset Quality Rating Key

Asset Insight analytics (www.assetinsight.com)

OutstandingExcellent

Very

Good Good Average

Below

Average

5.500

or

Greater

5.250

to

5.499

5.000

to

5.249

4.750

to

4.999

4.500

to

4.749

Less

than

4.500

Ask Price vs. Maintenance Exposure

$ Millions

Asset Quality Rating

Scale -2.500 to 10.000

Ask Price vs. Maintenance Exposure

$ Millions

Asset Quality Rating

Scale -2.500 to 10.000

Small Jets: With an aircraft inventory decrease of three units and

mostly higher quality assets transacting, the Small Jets ended

June with some unusual figures. While asset quality worsened

more than 2% for the month and 3.2% for Q2, Maintenance

Exposure improved 11.4% for the month (primarily due to a lower

anticipated cost for upcoming maintenance events) yet posted a

6.7% degradation for Q2.

Average Ask Price fell 1.2% in June, and 1.8% during Q2, and

the figures for that month – while hovering around the 12-month

average – was virtually identical to pricing posted in December.

Maintenance associated with aging aircraft is the primary

cause behind these odd statistical changes, and buyers are

cautioned to focus on overall cost during their planned

ownership period – not just the cost of acquiring the asset.

Turboprops: Year-to-date, buyers of Turboprops have focused on

higher quality assets, thereby leading to a steady degradation of

inventory Quality Rating and Maintenance Exposure figures.

June continued this trend with asset quality worsening a slight

0.4% (2.2% during Q2), and Maintenance Exposure worsening

2.5% (6.3% for Q2). With pricing decreasing 1.6% in June (2.4%

for Q2, and 3.5% since December), the group’s ETP Ratio rose

(worsened) to a record-high figure.

Quality assets are still available, but they have become more

challenging for buyers to identify with cursory analytics.

MI http://www.assetinsight.com ❙

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