No Matter the Economic Cycle,
Efficiency Rules
By Bruce Byerly
Wow! We’re into 4th quarter of 2010 and the marketplace, while a bit bruised this year, remains alive.
Across all Twin Commander models, the average number of aircraft for sale is down approximately 10 percent from peak 2010 levels. It’s difficult to conclude whether or not we are seeing a sustainable trend, but I can report that the last few weeks have witnessed strong activity in aircraft sales, especially on aggressively priced Dash 10 aircraft. Of course, with a cost basis typical of purchases in the last 10 years, today’s prices are not as good for owners interested in selling as they are for customers interested in buying.
As I mentioned in my last market report, the model 1000 continues to lead the way in terms of sales, with inventory at the lowest level in recent memory. Supporting the sales activity, all of the major Twin Commander service facilities that I’ve spoken with recently say they are booked to capacity. To me, this indicates that owners are interested in investing in the future of their Twin Commander aircraft. I take this to mean that owners expect to continue to fly and to appreciate the performance of their aircraft compared to the alternatives.
It would be easy to dismiss the alternatives, but since most of us do not make decisions in a vacuum, we should consider something remarkable: Twin Commanders today routinely sell for as much or more than the business jets that were supposed to replace them years ago.
On this point, a new client and former business jet charter customer asked me last week how to make sense of the current aircraft market. His own demonstration flight provided the answer: A short-notice, single-pilot trip into a 3,000-foot-long runway. An important bonus was the fact that the trip was completed on half the fuel that a chartered jet would have required, so turboprop technology remains relevant. Today’s frugal market recognizes it as the most efficient tool for many typical missions.
One of our more famous clients just returned from an around-the-world trip is his Dash 10-powered 690A. As I recall, he visited more than 50 airports and logged well over 115 hours and 35,000-plus miles of trouble-free flying. I’ll let him tell you the details at the next Twin Commander University, but it’s another great story that reminds me of why owners appreciate their Twin Commanders, and why, even in down cycles, there are new converts ready to join the fold.
Bruce Byerly is Vice President of Naples Jet Center and a veteran of Twin Commander sales.
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