Asian Sky Quarterly 2021 Q4 - 25th Issue
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A LOOK BACK: MARKET DYNAMICS<br />
HISTORICALLY LOW INVENTORY<br />
As of publication we are seeing all time low inventory levels. (i.e., the<br />
percentage of number of aircraft for sale vs. total aircraft in operation).<br />
At the end of <strong>Q4</strong> <strong>2021</strong> that figure was just 2%, whilst in Asia-Pacific<br />
that number is higher at 5%. Since the first issue of ASQ in <strong>Q4</strong> 2015<br />
the highest percentage of inventory we have seen has been around<br />
mid-2016, when the Asia-Pacific figure was around 14% and the global<br />
figure around 9%. To put that in terms of actual numbers of aircraft<br />
available, in 2015 there were around 600 aircraft on the market, whilst<br />
today there are around 200. Many of the aircraft that are on the market<br />
are older aircraft that have already clocked up a lot of hours. We have<br />
also seen the average asking price for pre-owned models steadily<br />
increase since mid-2020, which has helped counter the aircraft’s<br />
depreciation due to usage and natural aging.<br />
*Stats are from ASG’s Market Dynamics research by taking a selection of 39 popular<br />
business jet models on pre-owned market.<br />
Percent of Business Jet for Sale Since 2015<br />
16%<br />
ASIA-PACIFIC<br />
14%<br />
12%<br />
10%<br />
8%<br />
6%<br />
4%<br />
WORLDWIDE<br />
2%<br />
Jan<br />
2015<br />
Jul<br />
Jan<br />
2016<br />
Jul<br />
Jan<br />
2017<br />
Jul<br />
Jan<br />
2018<br />
Jul<br />
Jan<br />
2019<br />
Jul<br />
Jan<br />
2020<br />
Jul<br />
Jan<br />
<strong>2021</strong><br />
Jul<br />
Dec<br />
Average Asking Price Trend Since 2015<br />
28<br />
26<br />
ASIA-PACIFIC<br />
24<br />
22<br />
20<br />
18<br />
16<br />
14<br />
12<br />
WORLDWIDE<br />
10<br />
Jan<br />
2015<br />
Jul<br />
Jan<br />
2016<br />
Jul<br />
Jan<br />
2017<br />
Jul<br />
Jan<br />
2018<br />
Jul<br />
Jan<br />
2019<br />
Jul<br />
Jan<br />
2020<br />
Jul<br />
Jan<br />
<strong>2021</strong><br />
Jul<br />
Dec<br />
Today’s worldwide market inventory value (number of aircraft for sale<br />
x average asking price) stands at US$3.0 billion , which is 70% lower<br />
current market inventory value is US$724 million while at its peak in<br />
Q2 2016 it was US$1.8 billion.<br />
than the $10 billion that it was back in Q3 2016. In Asia-Pacific, the<br />
46 | ASIAN SKY QUARTERLY — FOURTH QUARTER <strong>2021</strong>
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