Aircraft owners face an ever-changing market. That is why our team of experts is committed to being your ally in aviation. Whether buying, selling or financing, Lone Mountain Aircraft simplifies the aircraft ownership experience so you can have peace of mind with each step of the process.
The quantity of calls from bankers is an odd but accurate litmus test for the health of the market. When you don’t hear from them, the market is hot. When they are calling, they’re searching for transactions and not closing anything; the market is cold. If they’re offering a round of golf, we are in recession. We were offered too many lunches from the bankers the last quarter but still no trips to the links! The jet-side is nursing our hangover from December where nearly 300 aircraft transacted. We saw more modest sub-130 transaction months in Q1. Though transactions are low, the number of planes added to the for-sale market is building with a 4.8 percent increase this year. There are more jets today than in the last six months making it a good time to be a buyer.
The turbine market performed well during the first quarter, in spite of the fact it is usually a slower time of year. Large turbines, such as King Air and Pilatus, are continuing to have a strong performance. The TBM market remains a seller’s market with demand up and prices on the rise. The late model and pre-owned Piper Meridian market remains healthy with a slight softening in the new M600 segment.
Last year set new records for Lone Mountain Aircraft in the Cirrus market, so it is hard to imagine 2019 could get much better, but it has. Volume/units sold was up 40 percent for the first quarter, with strong sales in the Generation 5 SR22 and SR22T market segment. The natural upgrade path for these owners is the Generation 6 SR22 and SR22T. Pricing is holding reasonably close to new pricing in the Generation 6 market segment, so pre-owned G6 SR22 and SR22T face competition from new aircraft. Cirrus continues to keep a nine-plus month backlog, so pre-owned pricing of the Generation 6 airframe continues to hold steady. The Generation 2 market segment bears mentioning as well as inventory is at a record low. When units become available, they are likely to be sold before they ever hit the marketplace.
As markets continue to change, Lone Mountain Aircraft helps clients bring clarity and expertise to their side of the table. We are proud to be one of the preeminent sellers of pre-owned aircraft worldwide and offer both sales and acquisition services for all types of aircraft. Our team would love to be part of your next success story in aviation! If you would like to be added to our TBM, Meridian, Phenom 300, Phenom 100 or SF50 quarterly reports, please email your name and address to firstname.lastname@example.org.