Pre-Owned Aircraft Market Overview for Q3 2023

With regard to the business jet market, we’ve just seen one of the most sluggish summers in memory, and with NBAA-BACE on the horizon, the year is rapidly heading towards its close.

Persistent email campaigns advertising price drops have left many potential buyers uncertain about the ideal time to make a purchase. Those holding out may find their patience rewarded with attractive asking prices as the year concludes.

With a host of global economic uncertainties and an ongoing conflict appearing to escalate rather than conclude, we expect the economy to remain volatile for an extended period. As we approach 2024 and the increasingly anticipated, if not dreaded, election season, we foresee continued market ambiguity until the Federal Reserve provides clear guidance on rate adjustments.

As for market specifics, notably the Cessna Citation Bravo has decreased by 12.5%, the Citation Encore by 5%, and the Citation CJ2+ and CJ3 by 5%. The Citation M2 has dropped by 8%, the Citation Sovereign+ by 4.5%, and the Citation X by 4%.

Additionally, the Cirrus SF50 Vision Jet has seen a 5% decrease, the Dassault Falcon 900EX is down 9%, the Gulfstream GIV-SP is down 4%, the Hawker 800XP is down 6%, and the HondaJet Elite has notably dropped 15%.

Pre-Owned Turboprop Market Highlights

The turboprop market is always less volatile than the business jet market. While we have seen a correction – especially among the older Beechcraft King Airs - the balance of the single-engine fleet is doing surprisingly well. Except for a small drop for the Daher TBM 910, ‘flat’ is good in this market.

Pre-Owned Helicopter Market Highlights

The worldwide helicopter market is expected to expand from $37.35 billion in 2021 to $56.59 billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 6.1%. North America is anticipated to maintain the largest market share, with a CAGR of 5.4% during the forecast period.

Key factors propelling this growth include rising demand for search and rescue helicopters, increased military spending on advanced models, and the adoption of composite materials that offer advantages like weight savings, enhanced performance, and reduced maintenance costs.

MD Helicopters is set to introduce an engine retrofit for its MD520N model, in collaboration with Columbia Helicopters. The retrofit, involving an upgrade to the Rolls-Royce 250-C30 engine, is pending FAA supplemental type certification.

This enhancement aims to boost the helicopter's performance in hot-and-high conditions, while offering advantages like higher useful load, improved shaft horsepower, greater operating temperature margins, and lower maintenance expenses.

In terms of notable pre-owned market trends, the popular Bell 407 is flat from last quarter, the Bell 212 has decreased by roughly 12%, and the Bell 429 and Bell 505 are also both off their previous quarter’s numbers. Meanwhile, the MD 600N is down 30% and the MD 902 is down 10%.

Pre-Owned Single-Engine Piston Market Highlights

The single-engine piston segment serves as the cornerstone of the General Aviation market, encompassing training and entry-level aircraft that constitute the bulk of the fleet. The present financial landscape has adversely affected transaction volumes, and high interest rates are causing potential buyers to hesitate, even though aircraft prices have declined.

Many buyers have been holding off on purchases, waiting for clearer market signals. With the flying season nearing its end, we anticipate this trend to continue for the remainder of the year.

It's worth mentioning that after experiencing pressure in the form of declining prices and longer marketing times, certain models are beginning to stabilize. Examples include the Cessna 180 and 172RG which have seen 5% increases, and the Cessna T206 which is up by 2%. The Cessna 182 has decreased by 10%, however.

Pre-Owned Twin Piston Market Highlights

The landscape of the twin-piston market is characterized by a mixture of dynamism and caution, with buyers meticulously searching for value amidst a sensitive sector. This segment is experiencing a slower pace of transactions and activity compared to the single-engine performance sector.

In recent times, the necessity for multi-engine trainers in flight schools has drastically altered the dynamics of the new twin-piston market.

Experienced operators are now prioritizing modernized and well-maintained aircraft over turboprops, a choice driven partly by the increasing pressures on the financing market. Consequently, aircraft like the Beech Baron 58 and Cessna 310 are re-emerging as favorites on buyers' wish lists.

However, prospective buyers should keep a careful eye on the sales landscape. Many aircraft are experiencing extended resale durations approaching (and sometimes exceeding) a year, as seen with models like the Beech Baron 58P and Cessna 414.

The 1970s and 1980s were a golden era for twin-engine piston aircraft – a time when fuel was affordable and manufacturers such as Piper, Cessna, and Beech were flourishing. Between them, they offered a rich portfolio of thirteen twin-engine models in production during the late 1970s.

The present scenario is starkly different. A culmination of economic factors has led to a considerable reduction in production with Cessna halting the production of twin-engine piston aircraft altogether.

Presently, only a limited number of twins, including the Piper Seminole PA-44 and Seneca V PA-34-220T, Beech Baron G58, and Diamond DA-42 VI, to name a few, are being manufactured. Among these, the PA-44 stands out for its enduring production run of 36 years, proving popular among institutional flight schools and individual and business flyers who appreciate the security offered by a twin-engine, and are satisfied with a cruise speed of 150-160kts.

In this limited yet diverse market, the Baron G58 notably sits at the pinnacle, being the highest-priced, best-performing, and arguably the most agile piston twin available. But even the top of the heap can’t find many interested buyers. The numbers speak for themselves, dropping from around 40 deliveries a year in 2006 to only three new aircraft delivered in 2022.

Tecnam has ingeniously ventured into this space with a cost-effective multi-engine trainer, taking inspiration from the Aero Commander design and equipping it with twin 100hp Rotax engines, thus offering a budget-friendly alternative in the multi-engine training market. Ultimately, while the twin-piston market has evolved and contracted over the years, it still harbors a rich variety of options for different kinds of buyers.

Among the trends in this market, Cessna 421Cs are down 8%, Cessna 310s are up 5%, Diamond DA62s are down 5%, Cessna 340As and Piper PA-34s are flat, and Beech Baron 58 series aircraft are up 5%.

More information from: www.vref.com