market report: 2011 Trends Toward
More Stability
Also stable, if not increasing, is the pace of modifications
and upgrades.
By Bruce Byerly
The finish line for 2011 is in sight. Activity levels have proven steady this year, with a significant uptick in August sales data. Moving forward, we will learn whether or not the latest increase in sales activity foreshadows a real upward trend.
Notably, comparing the numbers for the month of August, we’ve seen 10 to 12 Twin Commanders change hands. Although August is typically more active than the vacation month of July, this is 300 percent more than the normal monthly sales activity, and more than any month in several years.
The healthier market is welcome news to both buyers and sellers as a signal of confidence. It reflects the fact that among several desirable later-model aircraft such as the CJ2/3, the number of quality aircraft available for sale is down substantially. While some of the “low hanging fruit” has been picked, and activity seems strong and likely to continue, there is no real indication yet of a rise in prices.
Also stable, if not increasing, is the pace of modifications and upgrades. This also is a signal of owner confidence in the value of legacy aircraft as well as increased operations. In fact, more than one facility I spoke to is reporting that, compared with a year ago, they are seeing a steady doubling of requests for quotes on modifications and inspections for turboprops and light jets.
I believe it is important to note the clear interest of owners to update their aircraft, including avionics and engines. Over the past few years there has been a resistance to discretionary spending on aircraft due both to cash constraints and to uncertainty in the marketplace. With qualified maintenance facilities across the country busy installing the latest hardware, we see owner and new-buyer confidence in their aircraft.
For example, more Dash 10T engine conversions are underway than in several years. And, we expect Meggitt-equipped aircraft to soon have access to the wonderful Garmin G600 installation, which will integrate beautifully with the Meggitt digital autopilot. Personally, I’m excited to see these kinds of upgrade programs. They perfectly complement the solid approach to progressive maintenance taken by the type certificate holder, Twin Commander Aircraft.
Bruce Byerly is a vice president at Naples Jet Center, and has long experience in Commander sales.
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