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 revealed a "considerable" drop in pre-owned business aircraft asking prices and an increase in "days on market" (up to 54 percent for some aircraft), largely due to the COVID-19 pandemic.
- The overall inventory of aircraft listed for sale increased by 8.2 percent (large jets by 15.3 percent), while transactions significantly decreased compared to prior quarters.
- All aircraft categories experienced price reductions, with large jets seeing a 9.6 percent drop and small jets an 8.8 percent decrease year-to-date.
- Despite average "days on market" worsening, the overall Maintenance Exposure to Ask Price Ratio (ETP Ratio) slightly improved, enhancing the marketability of the tracked fleet, though high-ETP aircraft took significantly longer to sell.
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