ORIGINALLY PUBLISHED BY AJ PUBLICATIONS

By Jens Personius

2022 PHENOM MARKET TRENDS

Exceptional Q4 demand in 2021 left Phenom 100 and 300 inventory depleted at the start of the year. However, demand for the few remaining aircraft remained high, leading to an abrupt spike in prices in the first half of the year. Over the summer, the inventory of base model aircraft has begun to recover. While macro trends can broadly describe the Phenom market, the growth and maturation of the upgraded aircraft in each fleet warrant a closer analysis of their micro trends. Before looking at each segment individually, it is helpful to have a bigger picture of both fleets.

FLEET BREAKDOWN

Phenom 100:                     Phenom 300:

-380 active aircraft            -659 active aircraft

-74% Phenom 100            -74% Phenom 300

-14% Phenom 100E          -26% Phenom 300E

-12% 100EV

PHENOM 100 INVENTORY, TRANSACTIONS, AND PRICING

The Phenom 100 “legacy” inventory has steadily increased from its historic low of 1.72% in January to 5% of the fleet in August. The first two quarters saw five and nine aircraft change hands respectively, while only two sales have been recorded thus far in Q3. This year, average prices have ranged from $2.4m to $2.9m, with the highest priced sales occurring at the end of Q2. If inventory levels continue to rise, moderate price softening should be expected through the end of Q3.

Phenom 100E inventory was at a five-year low at the start of this year and rose to 3.5% in Q2, where it has remained stable. Additionally, four aircraft have sold this year, with the last sale closing in May. Average prices rose as high as $3.8m in Q1 and decreased to $3.6m at the beginning of Q2. If inventory levels remain stagnant through Q3, sellers interested in upgrading should consider listing their aircraft to capitalize on the low competition in the market.

No 100EV aircraft were available at the start of this year; inventory increased to 3% by mid-summer and fell to 1% by the end of August. Average prices reached an all-time high of $5.5m at the end of Q2 and have ranged from $4m to $4.1m over the summer. Valuations for early model 100EVs and Citation M2s are each up 15% since January, indicating that 100EV values are keeping pace with the competition.

PHENOM 300 INVENTORY, TRANSACTIONS, AND PRICING

Phenom 300 inventory started January at 0.4% and has maintained roughly 1.6% over the summer. There were eight transactions in Q1, four in Q2, and another four thus far in Q3. Average prices rose to an all-time high of $8.5m in August. Phenom 300 valuations are up 10% as of August; however, inventory has increased nearly 295%. Similar to the Phenom 100, a price decrease can be expected as inventory levels continue to rise.

Only two Phenom 300E’s have been publicly listed thus far in 2022. The first plane to enter the market went under contract almost immediately after being listed. A total of five 300E’s have sold this year. At $13.5m, the 2021 Phenom 300E currently on the market is the highest priced pre-owned aircraft in its segment to date. With the first 300E delivered in the spring of 2018, lower serial number aircraft will soon be approaching the end of their five-year warranties. Until that point, inventories are likely to remain low and prices high.

Low serial, base model Phenom 100s and 300s remain the most active segments in their respective fleets. Inventory levels of each have been steadily rising to meet their demand. Inventory of the advanced models, including the 100E, 100EV, and 300E, remains sparse. Values of these aircraft are at all-time highs, and owners looking to upgrade are encouraged to list their aircraft while supply remains low. As the early aircraft in these segments near a maturation point in their life cycles, it is likely that more will slowly start coming to market in the near future.

Aircraft brokerage, AEROCOR LLC, has released a comprehensive new owner’s guide for the Beechcraft model 390 Premier I/IA family of aircraft. The guide is designed to answer all of the most common questions posed by new owners. It includes sections on training, engine program transfer and reporting, subscription services, database update procedures, minimum equipment list (MEL) and reduced vertical separation minimums (RVSM) authorizations, maintenance tracking options, and the most common does and don’ts of aircraft operation.

The company has made the comprehensive guide available to new aircraft operators regardless of whether they used AEROCOR for their transaction. “Too often we hear new owners say that they feel abandoned and left to fend for themselves once the deal is done. At AEROCOR, we pride ourselves on providing post-sale support, and it just made sense to create a resource to share everything that we had learned with new operators no matter where they purchased their aircraft,” says Gavin Woodman, AEROCOR co-founder and President.

The new owner’s guide is a follow-on offering to the company’s highly successful model 390 Premier buyer’s guide which was published in 2020. “We saw how removing the information gap can improve liquidity with the Eclipse market, and the lack of accurate information about the Premier made it a logical growth opportunity for us,” says Woodman, referring to the company’s library of informational resources for the Eclipse 500/550 series which led to increased demand for the aircraft and made AEROCOR the market leader, now representing over 80% of all global transactions. “The success of the buyer’s guide only solidifies the importance of providing accurate information,” added Woodman.

AEROCOR says that it will continue to update its aircraft learning center to incorporate relevant information as it develops. The company also publishes monthly market updates and quarterly market reports. 

To learn more about the Premier, visit AEROCOR.com/aircraft-library or email sales@AEROCOR.com

AEROCOR has released the world’s first Beechcraft Premier I/IA Fleet Update. The exclusive report contains results from the company’s recent fleet survey which included questions about aircraft utilization, program status, factory options and relevant upgrades. The survey was conducted during October and November of 2020 and received participation from 28% of the active fleet.

“There was very little information available on the state of the Premier fleet” notes Gavin Woodman, AEROCOR co-founder and President. “Fleet data is incredibly valuable. For operators, it provides the context to assess the value of available upgrades. For buyers and sellers, it provides a basis for comparing aircraft available in the marketplace. ” adds Woodman.

The AEROCOR Premier Fleet update is a follow up to the company’s highly successful Premier Buyer’s guide and Premier Market Updates. Woodman says that the company will conduct annual surveys of the Premier fleet, incorporating new upgrades, STC’s, and other relevant changes as they occur. “It’s one more step toward closing the information gap left when the manufacturer ceased production and gives prospective buyers and sellers a competitive edge.”

To receive a copy of the fleet update, email sales@AEROCOR.com

Light jet brokerage firm AEROCOR, announces record setting numbers for 2020 as the firm completed 58 transactions, 31 of which occurred during the fourth quarter. This makes AERCOR the global leader in Very Light Jet sales for the fourth year running.

AEROCOR attributes much of the success to the increase in demand for private aircraft resulting from the COVID-19 global pandemic, coupled with the firm’s increased footprint in the light jet aircraft space.

“The pace of transactions stalled during the onset of the pandemic as many quarantined and monitored the stock market” notes company co-founder Gavin Woodman. “By mid year, however, financial markets had rebounded and demand for private air travel increased. Additionally, two macro economic factors contributed to a year end squeeze. Several tax incentives were set to expire at the conclusion of 2020, providing motivation to complete a sale before their expiration, and an administration change in the White House led to fears of future tax code changes, further motivating buyers and sellers to complete transactions before year’s end.”

A review of Amstat data reveals the unprecedented magnitude of Q4 transaction volume. A total of 991 jet transactions occurred during the last quarter of 2020 which dwarfs the previous record of 676 transactions set in the fourth quarter for 2018. “We predicted a spike in transaction volume during this period, though the scale of the increase was well beyond what most had anticipated” adds Woodman. “For now, inventory levels remain low and demand is stable, making this a great time to sell.”

AEROCOR celebrated a number of other milestones in 2020, including completing 27 initial type ratings in the Eclipse 500 which shattered their previous record on 21 type ratings set the year prior and making AEROCOR the largest provider of initial Eclipse type ratings in the world. The company says that it plans to announce a number of new products and services in the coming months.

To learn more about AEROCOR Eclipse 500 Training Program, contact AEROCOR at 747.777.9505, sales@AEROCOR.com, or visit www.AEROCOR.com

AEROCOR’s flight training department announces that it completed 27 Eclipse 500 initial type ratings in 2020 with a 100% pass rating among it’s students. Based on current bookings, AEROCOR anticipates completing 3 training events per month going forward.

Historically known as a leader in light aircraft sales, AEROCOR has combined its sales activities with aircraft training, offering optional training bundles with each aircraft it sells. This allows aircraft buyers to finance pilot training costs as part of an aircraft purchase, removing an additional barrier in the purchase process and providing enhanced value to AEROCOR customers.

AEROCOR founders Gavin Woodman and Justin Beitler are both airline transport pilots with active flight instructor certificates. “We know how intimidating it can be to make the jump into flying jets; that’s why we designed our program specifically with the first time jet pilot in mind” says Woodman. The program received initial approval from the FAA in early 2018 and has been continually improved since. AEROCOR has added to its training staff and now uses some of the most experienced Eclipse pilots in the world. Woodman noted that additional improvements are planned for the near future: “We continue investing heavily into improving our program and we have some exciting enhancements coming in 2021.”

To learn more about AEROCOR Eclipse 500 Training Program, contact AEROCOR at 747.777.9505, sales@AEROCOR.com, or visit www.AEROCOR.com

FlightData.com announces the addition of a new automatic reporting feature to its cloud based flight data analysis platform. The new feature allows FlightData.com users to share pertinent data with third party providers.

There are currently three providers configured for automatic reporting on FlightData.com: CAMP systems for aircraft enrolled in Engine Condition and Trend Monitoring (ECTM), Boeing Distribution (Formerly Aviall) for Eclipse 500 aircraft enrolled in Boeing Engine Intelligence (BEI; formerly ESP), and Savvy Aviation for aircraft enrolled in maintenance consulting services.

“Automatic reporting is a key enhancement to FlightData.com”, says company co-founder and president Gavin Woodman. “We know that it’s a hassle for our customers to manage multiple platforms for reporting aircraft data to program providers, so we’ve automated the process,” added Woodman.

When combined with BlueMAX, the company’s wireless data transfer unit, this feature provides operators of compatible aircraft with a fully integrated process, from data capture to program reporting.

FlightData.com continues to add new features and expand its list of compatible products, and the company says that it has some exciting announcements scheduled for 2021.

To learn more about FightData.com, contact AEROCOR at 747.777.9505, ATC@flightdata.com, or visit www.flightdata.com

AEROCOR announces the acquisition of the BlueMAX wireless data transfer unit from Australia based Control-J Pty Ltd.

The BlueMax is a bluetooth adapter that enables aircraft operators to wirelessly stream aircraft engine and positional data to a portable device such as a phone or tablet. Originally developed for Cirrus aircraft equipped with Avidyne Entegra avionics, the BlueMAX unit is also compatible with other common engine monitors, such as those from JPI. The company has already begun to integrate the data capture capabilities into its data analysis platform FlightData.com.

“We are very excited to add BlueMax to our product portfolio”, says company co-founder and president Gavin Woodman. “Users of FlightData.com have been asking for a seamless way to upload data, and BlueMAX will provide that capability.” Woodman continued. He also noted that BlueMAX provides additional capabilities in flight, such as allowing users the ability to replicate or replace the functionality of an MFD with an inexpensive iPad.

AEROCOR is continuing development of the BlueMAX, and has plans to expand the list of compatible avionics platforms.

To learn more about BlueMAX, contact  AEROCOR at 747.777.9505,  ATC@flightdata.com, or visit www.flightdata.com

AEROCOR announces a new partnership with Terrapass designed to reduce jet owners’ carbon footprint. E

ffective immediately, AEROCOR will acquire enough carbon offsets to neutralize the emissions for the first year of flying (roughly 120 flight hours) for all light turbine aircraft purchased or sold using their services.

“We are excited to partner with Terrapass to meet our emissions reduction goals, which are an important part of our corporate sustainability plan,” says Justin Beitler, AEROCOR co-founder. “We wanted to contribute towards making aviation a greener industry, and this program gives us a way to help neutralize aviation’s impact on the environment. By partnering with Terrapass, we hope to not only do our part, but inspire others to take responsible action as well.”

Terrapass’s offset program is an easy way to balance an aircraft’s carbon emissions by investing in carbon reduction projects. They provide simple, inexpensive ways to measure, manage, and mitigate emissions.

To learn more about AEROCOR Carbon Offset Program, contact AEROCOR at 747.777.9505, sales@AEROCOR.com, or visit www.AEROCOR.com

AEROCOR has released a comprehensive buyer’s guide for the Beechcraft Premier I/IA family of aircraft. The guide is designed to answer all of the most common questions posed by potential buyers. It includes sections outlining aircraft options, avionics upgrades, maintenance intervals, engine programs, aircraft performance, insurance, and financing options.

“There has been a notable lack of unbiased information available about the Premier” notes Gavin Woodman, AEROCOR co-founder and President. Woodman says that the Premier Buyer’s Guide is a follow up to the company’s highly successful Eclipse 500/550 Buyer’s guide, which fueled an increase in demand for that aircraft type.“A buyer can’t consider an aircraft they don’t understand. By properly organizing the pertinent information we are able to fill the information gap left by the manufacturer when they ceased production” Woodman added.

AEROCOR says that the guide will be updated regularly to incorporate new upgrades, STC’s and other relevant changes as they occur. They plan to release similar guides for other single pilot turbine aircraft in the near future. 

To receive a free copy of the guide, email sales@AEROCOR.com

Originally published by TBM

Market Overview- SLOW as she goes

Aviation continues to struggle in the wake of the Covid-19 pandemic. Beyond the economic ramifications, travel restrictions and fears of contracting the virus have dramatically decreased the demand for air travel. Currently, air travel passenger volume is at 25-30% of historical levels. Air Charter has been the least affected (back to 75% of pre covid level) as a larger share of travelers are opting to fly private.

Increased charter demand has not translated to higher demand for aircraft. Q2 transactions volume was 31% lower than Q2‘19. Jet demand was disproportionately affected experiencing a 33% decline, while turboprops fared only slightly better, down nearly 28%. Q2 numbers would have been worse if not for a modest increase in sales in June, however preliminary July data suggests that the rally was not sustained.

On a brighter note, inventory levels have remained relatively stable with 7.7% of the jet fleet (up only 1/10th of a percent from a year ago) and 5.9% of the turboprop fleet (actually down 1/10th from a year ago) available for sale. Average time on the market for current inventory has also remained stable. This means that although demand is down, so is the flow of new supply.

The net impact on prices has varied dramatically by segment and fleet type. Large cabin, long range aircraft have been hit the hardest while the light aircraft segment (with a few exceptions) have shown to be the most resilient.

The gap between buyer and seller expectations continues. Buyers are making offers 20-40% below pre-Covid values, while sellers continue to adhere to prior expectations. If this continues it will eventually lead to an increase in supply and a decrease in values.

To see how these conditions impact the TBM, let’s look at the data…

Supply

TBM inventory remains healthy (4-7% of the fleet) and in line with the broader light/medium turboprop segment. TBM inventory is also very close to those from one year ago, so for now supply remains stable. For comparison, over 9% of the light jet fleet (Citation Mustang/CJ series, Phenom 100/300 and the Honda jet) is currently available for sale.

Demand

TBM types are grouped into “like kind” categories.

Q2 transaction volume decreased dramatically in response to the lockdowns. 700 series transactions fell a whopping 57% compared to Q2 ‘19 followed by the 900 series at 40% and the 850 series at 33%.

The 850 segment remains the most volatile yet most liquid, regularly posting double digit quarterly transaction numbers. 900 series transaction levels remain the lowest reflecting their relatively young age and higher price point.

Average List Prices

The TBM continues to earn its reputation for high residual values. Daher practices a disciplined approach to aircraft production, always making incremental improvements and limiting output production to maintain scarcity in order to protect new and used values.

Ask price is a lagging indicator but is valuable in identifying trends. Actual 910/930 values have fallen 4-5% YTD, while earlier variants have been limited to 2% or less. Great buys continue in the 850G market with early aircraft routinely trading below $2M, and the 850L’s have found a sweet spot just north of $1.5M. Contact us for more recent sales data.

Understanding Value- It’s all about the details

Price is not the key determinant of value. Many aircraft are mismanaged with poor maintenance compliance and poorly designed avionics configurations. These issues lead to higher operating costs, lower dispatch reliability and lower resale value.. When it comes to buying or selling a TBM it pays to have experienced representation.

For more information, contact Gavin Woodman, 747.200.5953, Gavin@AEROCOR.com