6-month Pre-Owned Sales Results for January-June 2010

Pre-owned sales of medium and long range business jets are showing improvement:

–          8.8% of the available fleet is on the market, compared to 12% in 2009,

–          selling prices dropped 12% (avg) from 2009, compared to the 50% decline from 2008,

–          the number of transactions are running on par, and in some cases showing an increase, compared to the first 6-months of 2008 and 2009.

However, market exposure, calculated from when the aircraft comes on the market to closing, continues to increase, showing an average 449 days in 2010, compared to 350 days in 2009 and 221 for 2008.

Market Price (selling prices) declined only 12% from 2009, compared to the 50% decline in 2008. However, Market Prices are still an average 20% below Market Value (generated by applying standard valuation practice / depreciation to the original cost new).

As of the end of June, the absorption rate, time required to sell the current inventory based on sales activity, improved slightly showing an average of 29 months, down from 30 at the beginning of the year.


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