Spencer Bain and Mark Egan, Lone Mountain Aircraft Sales

While the fourth quarter traditionally brings the most activity in terms of preflown aircraft transactions, we witnessed a colossal absorption of late-model inventory in the first quarter of 2018. The result as we head into Q4 has been a bifurcation of many aircraft models, meaning most aircraft on the market are either like-new or on the other end of the spectrum – well outside manufacturer’s warranty and possibly near a major maintenance event.

This means clear skies and improving pricing for sellers inside that void as buyers seek planes that aren’t new, but not too old; that have a few blemishes, but aren’t in need of a new interior; that have time on the engine(s), but aren’t near overhaul. These buyers are having a much harder time finding a plane that is “just right” for their trips skyward.

Jet Market: We are seeing the lowest percentage (9.1) of the business jet fleet for sale in this century – since 1998 in fact. Light jets are the strongest segment with 10.7 percent of the total fleet available for sale. The newer segment within that fleet (less than 10 years old) represents only 5.6 percent for sale today. Ask prices within that segment are up – that’s right, up – 4.8 percent year-to-date.

Turboprop Market: The turboprop market currently has 7.2 percent of the fleet for sale. This represents the lowest percentage in the category’s history. The asking price for newer aircraft is up 11.1 percent year-to-date. Mid-age turbos (11-20 years) have an average asking price up 4.4 percent. Waning years, however, are still seeing a pricing slide.

Cirrus Market: Similar to this time last year, Cirrus Aircraft is experiencing their longest backlog of new aircraft, now taking orders for mid-year 2019 with the exception of a few remaining factory demonstrator aircraft available. This, along with the current market premium for all pre-owned G6 aircraft, supports the popularity of the G6 aircraft with Nxi Avionics.

Market ReportsPre-owned Cirrus inventory has consistently been down since the beginning of the year by almost 13 percent compared to the average in the last five years. This has not slowed down sales, with the total number of transactions 11 percent higher than at this time in 2017. We are also pleased to report that average sales prices are up just over 6 percent since this time in 2017. With those data points in mind as we head into what has historically been the strongest quarter of the year, makes for a great time to consider planning your upgrade to your next airplane.

As always, don’t hesitate to contact our team at Lone Mountain for a more in-depth market analysis. To be added to our TBM, Meridian or Phenom 100 quarterly reports, email your name and address to info@lonemtn.com.

Mark Rogers, President, Lone Mountain Aircraft

As we wrap up a record Q2 for sales at LMA, we are seeing continued optimism in the light aircraft markets. JetNet IQ just released a survey in late June showing most business aircraft operators believe the current market cycle is past the low point. Our own sales experience over the last quarter jives with this sentiment, as our units sold were a record 46 sales for the quarter. Inventories of some of the most popular models of aircraft are now at a third of the inventory of this time last year. The shrinking inventory has us returning to international markets again to find acquisition opportunities.

Contributing to the increased sales activity is the strong appetite of aircraft finance lenders for new loans. Lone Mountain Aircraft Finance has new finance offerings and competitive rates, and is proving to be a valuable resource for our clients.

Beginning in May of this year, Lone Mountain began a new model for providing detailed market data to aircraft owners. The model has been well received, and we are expanding this offering to all owners of turboprops and light jets. If you are an aircraft owner and interested in receiving our market reports, you can sign up on our website or via email at info@lonemtn.com.

Here is a quick look at what else is new:

Current Market Acquisitions: Lone Mountain is currently acquiring a King Air 350i, Phenom 100, Phenom 300, and Piper Meridian or M500 for qualified clients. Please let us know if you are considering selling or know of an available aircraft.

Vision Jet Positions: We have sold four more Vision Jet positions in Q2 of 2018 and are now selling positions that deliver in 2019. We have positions delivering as early as Q3 of 2019 with three delivery positions remaining for next year. Cirrus just delivered Vision Jet serial #54, and pilots are reporting a great customer experience and support from Cirrus. We expect Cirrus to build a total of 50 Vision Jets in 2018 and approximately 65 in 2019. On the training front, the first type-rating class offered at the new Vision Training Center in Knoxville will be held in July 2018 as training moves from In-Aircraft to simulator-based training.

Contact us today to learn more!   

With the first half of 2017 in the books, it has been an exciting year so far for Lone Mountain Aircraft (LMA). As usual at this time, we are currently busy preparing for the world’s largest aviation event, the EAA Airventure Oshkosh. Kicking off July 23 in Oshkosh, Wis., Lone Mountain will have staff roaming the show grounds all week and will have our usual presence at the Cirrus booth. We hope to see you there!

Here is a quick look at what else is new:    

New Sales Team Member: Gordon Ramsay joined the Lone Mountain team in March of this year and is off to a great start with several sales already. Most recently the Piper Program Manager at Columbia Aircraft Services in Connecticut, Gordon is well-versed in high-performance piston and single-engine turboprop aircraft. As an experienced pilot with over 3,500 hours of flight time and more than 30 years of experience in aircraft sales, he is a great addition to LMA.

New Jet Type Rating: Daniel Christman earned a new jet type rating in June. Go here for more info.

Vision Jet Positions: In addition to continuing to lead the market in SR2X resale, LMA is taking a leadership role in position resale. As we have been predicting for several years, the market for Cirrus Vision Jet positions has matured and become very active now that the type certificate and production certificates have been issued. New Vision Jets are being delivered to customers and many early delivery positions have been sold to eager new owners. We’ve been excited about this new product and even more so now that several of us have time flying it. Give us a call for details on a purchase or sale of a position.

Vision Jet Factory Delivery:
LMA also recently assisted with a factory delivery of a Vision Jet, with our own Mark Stear lending his extensive experience with jet deliveries. We were involved with the delivery of serial #10, and were favorably impressed with the fit, finish and overall quality. New owners are going to love this aircraft! 

Aircraft Financing: Our bank is eager to lend and looking for more aircraft to finance. Lending terms have eased a bit over the last year as banks are competing for deals, and rates are still attractive despite recent moves by the Federal Reserve. Lone Mountain Aircraft Finance has now financed over 100 aircraft since our first aircraft loan in 2013, and we continue to innovate with more unique financing options for our buyers.