Aero Asset reports that conditions deteriorated for the preowned\ntwin engine helicopter sales market in the second quarter of 2020.<\/p>\n\n\n\n
“Retail sales volume dropped a startling 60 percent\nfrom what was still a positive market in the first quarter of 2020,” said\nAero Asset Sales Director Emmanuel Dupuy. “We were starting to see the\nmarket soften towards the end of the first quarter and clearly that trend\namplified.”<\/p>\n\n\n\n
Dupuy indicated that the economic response to the world’s\nongoing pandemic and the crude oil price slump are the primary factors behind\nthe precipitous drop in the rotor wing marketplace. Aero Asset continues to\nmonitor changing market conditions as the world economy continues to take a\nvolatile path.<\/p>\n\n\n\n
The preowned supply of aircraft for sale remained relatively\nstable but the overall absorption rate tripled from the first to the second\nquarter. Preowned helicopter sales transactions in the pipeline dropped\nslightly from the first quarter of 2020, and dropped 40 percent compared to the\nfirst quarter of 2019. <\/p>\n\n\n\n
All Weight Classes Down <\/strong><\/p>\n\n\n\n Lightweight twin-engine preowned markets saw a 10 percent\ndecrease in supply and a 40 percent decrease in sales during the second\nquarter, compared to the first. Medium weight helicopter supply dwindled 20\npercent while retail sales declined a whopping 80 percent in the second\nquarter, compared to the first. While no sales were recorded in the second\nquarter for heavy weight twin engine helicopters, there was a 30 percent jump\nfrom the first quarter in aircraft available for sale on the market.<\/p>\n\n\n\n Liquidity Lineup <\/strong><\/p>\n\n\n\n The most liquid preowned markets in the second quarter were\nthe EC\/H135 and EC\/H145 with less than half the deal volume that occurred in\nthe same quarter in 2019. Six of 12 markets in the liquidity lineup saw no\ntrades, compared to two of 12 in the same quarter of 2019. Apart from AW139 and\nEC\/H155, the medium and heavy markets didn’t experience trades in the second\nquarter.<\/p>\n\n\n\n Deal Pipeline <\/strong><\/p>\n\n\n\n The number of deals pending at various stages of transaction\nin the second quarter of 2020 declined nearly 50 percent, compared to the same\nquarter a year earlier, and six percent compared to first quarter.<\/p>\n\n\n\n The company’s quarterly report covers rotor wing models in\nproduction and variants with recent sales activity. It encompasses preowned\nunits sold to end-users and does not include sale of a new aircraft, leases,\nsale leasebacks, internal transactions, early buyouts, sale to governments or\nsales for salvage.<\/p>\n\n\n\n Aero Asset’s complete market report ranks preowned twin\nengine helicopter markets from most to least active in the second quarter of\n2020, based on their absorption rates, on and off market sales and active fleet\nsize. The report covers all weight classes and configurations, including VIP,\noffshore, utility, and EMS.<\/p>\n\n\n\n