Press Release

Issued by Amstat.

January 28, 2016

According to AMSTAT, the leading provider of corporate aviation fleet and operator information, across all fixed wing and rotor wing business aircraft segments tracked by the company, resale retail transaction activity in Q4 2015 was largely flat versus Q3, down versus Q4 2014 and below 20‐year quarterly averages. Overall, global resale retail transaction activity was down for 2015 versus 2014. Business jets resale retail transactions as a percentage of the active fleet were flat quarter‐on‐quarter at 2.5% (versus 2.6% in Q3), down year‐on‐year from 3.0% in Q4 2014 and below their 20 year quarterly average of 2.8%. In 2015, 9.8% of the business jet population turned over versus 10.8% in 2014. At the fixed wing segment, quarter‐on‐quarter transaction performance was largely flat. On a year‐on‐ year basis, the medium jet market performed the best with 10.8% of the fleet turning over in 2015. While down from 11.3% in 2014, this was the smallest decline in the fixed wing segments. By contrast 7.6% of the heavy jet fleet turned over in 2015 compared to 8.5% in 2014. Similarly, 10.4% of the light jet fleet turned over versus 12.0% in 2014. Turbo‐prop Resale Retail Transactions were actually up quarter‐on‐quarter at 2.1% versus 1.9% in Q3, but down from 2.3% in Q4 2014. For 2015, turbo‐prop turnover was down at 7.7% versus 8.3% in 2014. Turbine helicopter transaction activity was flat quarter‐on‐quarter but at 1.3%, turnover in Q4 was below the 20 year quarterly average of 1.5%. 2015 performance was down at 5.0% versus 5.4% in 2014. Multi‐engine helicopter transaction activity was down in 2015 at 3.6% versus 4.1% in 2014. Similarly, Single‐engine helicopter activity was down at 5.9% versus 6.3% in 2014. Business aircraft inventories continue an upward trend. The inventory of business jets for sale is currently up at 11.1% of the active fleet versus 10.7% a year ago and below the 20 year quarterly average of 12.6%. heavy jet inventories were flat quarter‐on‐quarter but up year‐on‐year to 10.4% from 9.8%. Inventory for this segment is above its 20 year quarterly average level of 10.2% and has been slowly increasing since early 2014. Medium jet inventories were also up quarter‐on‐quarter and year‐on‐year to 11.2% from 10.9% but remain below their 20 year quarterly average. The medium jet inventory has been slowly increasing since early 2015. Light jet inventories contracted quarter‐on‐quarter but were up year‐on‐year from 11.0% to 11.5%. They remain below their 20 year quarterly average of 14.3%. Light jet inventories have been slowly increasing since early 2015. Turbo‐prop Q4 2015 inventories were down over Q3 but up year‐on‐year to 8.2% from 7.6%, but these levels remain below this segments 20 year quarterly average. Turbo‐prop inventories have been slowly increasing since early 2015. Turbine helicopter inventories were flat quarter‐on‐quarter and up year‐on‐year to 6.5% from 6.2%. These levels are above their 20 year quarterly average. Turbine helicopter inventories have been slowly increasing since early 2013. Multi‐engine helicopter inventories were up quarter‐on‐quarter and year‐on‐year from 5.7% to 6.8%. This level is above this segment’s 20 year quarterly average. Multi‐engine helicopter inventories have been slowly increasing since early 2015. By contrast single engine helicopter inventory remained flat around 6.3% from a year ago. Asking prices over the year often trended in a fashion contrary to trends in availability and transaction activity (supply and demand). Heavy jet average asking prices have been trending upwards since mid‐2011 and were up +1.9% between Q3 and Q4 2015. However, perhaps reflecting recent transaction softness and a rise in inventory levels, heavy jet average asking prices fell year‐on‐year by ‐1.3%. Medium jet average asking prices had a peak around the start of 2015 and then contracted through the year. Medium jet average asking prices are down ‐5.8% year‐on‐year. Light jet average asking prices have been trending upwards since the start of 2015 and were up 11.2% year‐on‐year. Turbo‐prop average asking prices have been trending up since the start of 2015. Turbo‐prop average asking prices were up by +4.9% year‐on‐year. Multi‐engine helicopter average asking prices have trended upwards since early 2014. Multi‐engine helicopter average asking prices were up by +2.9% quarter‐on‐quarter and by +0.5% year‐on‐year. Single‐engine helicopter average asking prices have trended downwards since 2014 and were down – 2.2% year‐on‐year. “We are concerned by the drop in transaction activity especially in those segments where 2015 represented the second consecutive year of contraction. The rising inventories are also of concern” said Andrew Young, AMSTAT general manager. He went on to add that “while we know this is an uneven recovery and that some parts of the market are doing better than others, overall the market trends in 2015 were not as positive as those in 2014.”