Asset Insight, a valuations, audits, analytics, and consulting firm that produces reports on the valuations and marketability of business class aircraft, has released their Q2 2020 Asset Insight AI2 Market Report. The report shows a “considerable” drop in the asking price of many preowned aircraft during Q2 2020, while stating that “days on market” increased as much as 54 percent for some aircraft in the same time period.
Asset Insight Q2 Report: Drop in Business Jet Prices
Key Takeaways:
- Asset Insight's Q2 2020 report shows a "considerable" drop in preowned business aircraft asking prices and a significant increase in "days on market" due to the COVID-19 pandemic.
- The market experienced an overall 8.2% increase in aircraft inventory, with prices declining across all segments (e.g., large jets down 9.6%), and transactions significantly slowed compared to previous periods.
- The Maintenance Exposure to Ask Price (ETP) Ratio is a key marketability factor; aircraft with higher maintenance liabilities (ETP Ratio of 40% or more) remained on the market nearly 54% longer than those with lower ratios.
- Despite the market slowdown, the report suggests an opportunity for buyers given the strong quality of available aircraft and an observed increase in activity towards the end of Q2.
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