1Q Market Overview
Things were looking up in the second half of 2022, but that has changed in some areas. 2023 so far has been a steady slowing of the markets. With interest rates still climbing, more uncertainty is showing within the economy and spending. Transactions are taking longer to close, potential buyers are more often looking for that special deal, and according to a few brokers, there are a lot of “Tire Kickers” inquiring about aircraft. Supply in the market is again on the rise for some models, and asking prices are starting to fall on the “not-so-popular“ models. At the same time, we are still seeing strong demand for specific models, and some models are still increasing in value as their supply is still very limited. More details are below on which models are showing signs of weakness and which are showing signs of strengthening.
Piston Market – The Piston market is still experiencing steady growth and demand as it is very resilient with economic shifts. There is still plenty of transactions taking place, with values remaining constant.
Light Single Turbine Market – Still a very active market for the Airbus A-Star series and Bell 407 series. While supply is still coming down on the newer variants, the older variants are starting to see supply increase again.
Light Twin Turbine Market – Moderate transactions are taking place and showing signs of slowing again with growing inventory levels and falling asking prices. The constant demand for the Airbus H145T2 and H145D3 variants and the Bell 429 remains ongoing as supply levels remain low.
Medium Twin Market – VIP transactions have slowed down, while utility transactions have picked up. Increasing demand in the Bell 212 and 412 markets is being observed. Leonardo AW139 demand remains strong with the lessors even though there are now 34- AW139 sitting on the market. A large portion of these aircraft are all higher-time aircraft that have been operating in Saudi Arabia with airframe times around 9,000 – 11,000 hours.
Heavy Twin Market – Supply has nearly vanished for these aircraft as demand remains strong. Very few transactions took place this quarter as a direct reflection of the availability in the market.
If by chance you are a helicopter owner or operator and are seeing something other than what we are publishing, please give me a call at 1-847-487-8258 or send me an email at jason.kmiecik@helivalues.com and I will be happy to discuss the market with you. If you have any sales you would like us to know about, I would also be happy to discuss them with you. Without your willingness to share information, we wouldn’t be here to keep the industry informed and up to date.
