Used Aircraft Market ShowsSigns of Better Days Ahead

Carl Janssens, ASAAircraft Bluebook – Price Digest

Finally, the pre-owned aircraft market movedin a positive direction in the first quarter of2010. Late-model, large-cabin, long-range air-craft were selling at or better than values pub-lished in the Aircraft Bluebook.

External factors such as increased sales, aslight decline of available inventory andworld market competition could all be consid-ered causes for the improvement. Althoughthis early indication of a slow recovery is inprogress, it is too early to celebrate. Any posi-tive sign going forward is far better thanwhere the used aircraft market has been.

With the exception of the late-model,large-cabin class, most of the other businessaircraft are not yet recovering in value. Thegood news is that values are showing morestability. Market activity is on the rise leav-ing a more optimistic perception that valuesare not exposed to the risks experienced inthe last twenty months.

A couple considerations might be affectingvalues in the pre-owned aircraft market. Thefirst is available credit for qualified buyers,and the second is the price of fuel. Part of thedilemma that played a major role in an in-jured economy was the lack of finance. Now,aircraft lenders are able to enable more trans-actions. This new reality will move the air-craft market into better days. At the sametime, credit could indicate how aircraft valueswill rebound as elements of risks financial in-stitutions are willing to take will have an indi-rect impact on value. Energy and the price ofcrude oil is the other factor that will impact

further recovery. As long as there are no sur-prising jumps in the price of crude oil in a lim-ited time frame, the aircraft market will beable to absorb the daily fluctuations in oilprices and prevent the cost of fuel from be-coming a deterrent in this industry’s recovery.

JetBluebook-at-a-glance

Increased . . . . . . . . . . . . . . . . . . . . . 5Decreased . . . . . . . . . . . . . . . . . . . 410Stable . . . . . . . . . . . . . . . . . . . . . . 462

As reported above, late-model, large-cabinaircraft are retaining value. SelectGulfstream G550s were up $1 million withthe remainder of these aircraft holding steadyin value. The Gulfstream G-V market re-mained unchanged. The G-IV values were offan average of $500,000. Bombardier GlobalExpress and the Global 5000 also held steadywhile inventories for sale decreased. TheBombardier Lear 45 series was off $200,000on average. The Cessna Citation Excel serieswas down an average of $200,000 as well.Light jets such as the Beech Premier were offan average of $200,000. The Hawker 400 wasdown $100,000. The Citation 525 was offslightly as well.

TurbopropBluebook-at-a-glance

Increased. . . . . . . . . . . . . . . . . . . . . 55Decreased . . . . . . . . . . . . . . . . . . . . 86Stable . . . . . . . . . . . . . . . . . . . . . . 452

The ag market values improved slightlywhen compared to the previous quarter.

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Late-model Beechcraft King Airs remainedstable. Earlier models generally also held on,though some models trended downward. Re-duction in production for the King Air seriesmight have some positive benefits. In time,limited production could cause limited in-ventories for sale in the pre-owned market,which would then cause values tostrengthen. The Cessna Conquest was stablefor yet another quarter. The Piper Meridenwas down $50,000.

MultiBluebook-at-a-glance

Increased. . . . . . . . . . . . . . . . . . . . . 29Decreased . . . . . . . . . . . . . . . . . . . 103Stable . . . . . . . . . . . . . . . . . . . . . . 523

The Beech Baron family of piston twinsachieved some slight gains in value.Early-model 58s were up slightly. SelectBaron 55 models also experienced narrowgains. For the most part, however, decreasesin value were slight but across the board.Cessna 310 values were down, and the Dia-mond Twin Star was off $10,000.

SingleBluebook-at-a-glance

Increased . . . . . . . . . . . . . . . . . . . . 311Decreased . . . . . . . . . . . . . . . . . . . 267Stable . . . . . . . . . . . . . . . . . . . . . 1909

Select ag planes generally made slightgains. Values of early-model Beech BonanzaA36s were up from the previous quarter.Late-model Cessna 172 Skyhawks andCessna 206s reported slightly higher valuesfor the summer release of Aircraft Bluebook.Commanders and Mooneys were generallyoff $5,000 to $10,000 when compared to theprevious quarter. The majority of aircraft inthis reporting segment remained stable.

HelicopterBluebook-at-a-glance

Increased. . . . . . . . . . . . . . . . . . . . . 52Decreased . . . . . . . . . . . . . . . . . . . 170Stable . . . . . . . . . . . . . . . . . . . . . . 809

The Enstrom F28/280 series improvedslightly from the previous quarter. Com-pared to the previous quarter, select modelsof the Eurocopter Twin Star were off$100,000. The Bell 430 also declined an aver-age of $300,000 from previous reported val-ues. The Enstrom 480 was down $50,000.The helicopter segment remained stable forthe most part.

Contact Aircraft Bluebook – Price Digest

Please contact Aircraft Bluebook if you haveany specific concern in a particular aircraftmarket. We will be happy to share with youthe most up-to-date information available foryour market segment. Call us toll- free at877-531-1450 or direct at 913-967-1913.

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USED AIRCRAFT MARKET VALUE

Used Aircraft Market. This chart displays each model’s quarterly value in relationship to its average equipped price at the inception of the aircraft.The study begins in the Spring quarter of 1994 and includes the Jet, Turboprop, Multi, Piston and Helicopter. For all charts, the red number indicatesthe first reporting date after 9-11.

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Jet. The jet chart depicts the average price (in thousands) of the six 1990 jets listed in the box.

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Hawker 800 0.0%Cessna Citation II 0.0%Dassault Falcon 50 (–) 3.1%IAI Astra 1125SP 0.0%Lear 31 0.0%Gulfstream G-IV (–) 4.6% 4041.7

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MULTI

Multi. The multi chart depicts the average price (in thousands) of the six multi models listed in the box. Each model’s year will precede the name of theaircraft.

Model % Change

1986 Beech 58P Pressurized Baron 0.0%1990 Beech 58 Baron 0.0%1985 Cessna 421 Eagle III 0.0%1981 Cessna 310 0.0%1982 Piper PA-31-310C Navajo 0.0%1990 Piper PA-34-220T Seneca III 0.0%

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TURBOPROP

Turboprop. The turboprop chart depicts the average price (in thousands) of a 1985, 1986 and four 1990 turboprops listed in the box.

Model % Change

1990 Beech B200 King Air 0.0%1990 Beech C90A 0.0%1986 Cessna 441 Conquest 0.0%1985 Mitsubishi MU-2 Marquis 0.0%1990 Piper Cheyenne III 0.0%1990 Cessna 208 Caravan (–) 3.3%

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PISTON

Piston. The piston chart depicts the average price (in thousands) of the 10 pistons listed in the box. Each model’s year will precede the name of the air-craft.

Model % Change

1990 Beech A36 Bonanza (+) 5.4%1990 Beech F33 Bonanza (–) 3.9%1986 Cessna 210 Centurian II 0.0%1986 Cessna 172P Skyhawk B 0.0%1985 Cessna 152 Commuter II 0.0%1990 Mooney 252TSE 0.0%1990 Piper PA-28-236 Dakota 0.0%1990 Piper PA-28R-201 Arrow 0.0%1990 Piper PA-28-181 Archer II 0.0%1990 Piper PA-28-161 Warrior II 0.0%

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HELICOPTER

Helicopter. The helicopter chart depicts the average price (in thousands) of the six helicopters listed in the box. Each model’s year will precede the nameof the aircraft.

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1990 Eurocopter AS350B Ecureuil 0.0%1990 Bell 206B III 0.0%1990 Enstrom 280FX 0.0%1982 Hiller FH1100 0.0%1990 McDonnell Douglas MD 500E 0.0%1990 Robinson R22 0.0%

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NASDAQ

NASDAQ: This ratio scale chart depicts the change for the NASDAQ daily average from quarter to quarter beginning at the end of the first quarter of1992. Each data point represents the closing daily average on the last trading day of each quarter. This study originates in the first quarter of 1971.

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CHANGE OF STATUSSINGLE • MULTI

Single/Multi. The blue line in the Single •Multi chart depicts change-of-ownership data for singles. The black line represents multis.

Single: 3,136Multi: 262

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AIRCRAFT ON REGISTRY

Aircraft on Registry. The Aircraft on Registry chart depicts the number of aircraft reported in Aircraft Bluebook which are listed on FAA records andconsidered to be in the U.S. inventory.

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CHANGE OF STATUSJET • TURBOPROP • HELI

Jet/Turboprop/Heli. The black line in the Jet•Turboprop•Heli chart represents change-of-ownership information for jets. The blue line depicts tur-boprops, while the gray line represents helicopters.

Jet: 600Turboprop: 285Heli: 256

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CHANGE OF STATUSTOTAL MARKET

Total Market. Depicts change-of-ownership data for all aircraft included in the Aircraft Bluebook. The numbers are from the FAA Registry. Gliders,homebuilts, airliners and other aircraft not found in the Bluebook are not included in this study.

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