Aircraft Resale Market Suffers Decline in Sales, But Shoppers Show Signs of Renewed Interest; Data From AMSTAT and ASO Reported at NBAA Convention in New Orleans Today

Business Wire, Dec 12, 2001

Business Editors

NEW ORLEANS--(BUSINESS WIRE)--Dec. 12, 2001

Retail sales of pre-owned business aircraft have fallen over the past year, but shoppers appear to be returning to the market after a noticeable dropoff in the wake of the September 11 terrorist attacks, according to a joint report from AMSTAT Corporation and Aircraft Shopper Online (ASO) at the National Business Aviation Association (NBAA) conference that opened in New Orleans today.

Completed resale transactions to end users in the first 10 months of 2001 dropped 13 percent in the light jet category, 21.5 percent in the medium jet category, and 4.3 percent in the turboprop category compared to the same period last year, according to market research from corporate aviation specialist AMSTAT. The only category that showed no change was large jets, which held steady at 129 completed transactions for both years.

But ASO, the leading Internet-based listing service for pre-owned aircraft, is showing signs of renewed buyer interest following a significant decline after September 11. While the average number of daily leads generated by the ASO site had plunged from 148 to 60 after the terrorist attacks, that number has now rebounded to 160 lead messages sent to sellers on an average day - more than before the attacks. The number of leads per 100 ads and per site visitor have shown a similar pattern, suggesting that the impact of the suicide plane crashes on the private aviation market may have subsided.

The companies also reported:

-- An 11-year high in the percentage of the active fleet of pre-owned business
aircraft for sale as recorded by AMSTAT, with 15.1 percent of the turboprop
fleet and 16.5 percent of the corporate jet fleet now on the market.

-- A significant 12-month rise in aircraft for sale as monitored by AMSTAT,
including jumps of more than 3 percent for light jets (13.4 to 16.9 percent),
medium jets (11 to 14.3 percent) and heavy jets (8.4 to 11.3 percent) between
December 2000 and December 2001.

-- Declines in asking prices between December 2000 and December 2001. During
that period, for example, AMSTAT records indicate that the average listing
price of a King Air B200 fell from just under $2.3 million to just over $2.1
million; a Citation 525, from just under $3 million to $2.75 million; a Hawker
800A, from nearly $7.7 million to $6.4 million; and a Gulfstream VI, from $23.2
million to $20 million. The drop continues a trend begun in 1999.

-- A noticeable slowdown in the single-engine prop market after September 11,
as evidenced by aircraft listed for sale on ASO. Listings for the single-engine
sector had increased 13 percent between November 2000 and August 2001, but
exhibited no change in the next three months, with virtually no aircraft coming
on or off the market.

-- A slight increase in the multi-engine prop market since September 11, with
aircraft listed for sale on ASO increasing by 2 percent. Brokers and dealers
speculate the uptick may be due to interest in this category for entry-level
business transportation as an alternative to commercial aviation.

ASO is a leading online source for used transport, business and personal aircraft. Since the inception of the ASO.com site in 1995 as the first comprehensive Web-based listing of pre-owned aircraft for sale, the company has helped bring about a fundamental change in the way that used airplanes are bought and sold by allowing shoppers to search up-to-date listings in their specific area of interest rather than pore through outdated print magazines. A tool on the site, i.aso.com, further streamlines the process by proactively matching aircraft buyers with the planes of their choice.

Established in 1982, AMSTAT is a leading provider of researched information on the worldwide corporate aircraft fleet and marketplace. On a daily basis, AMSTAT reports in detail on aircraft contact, aircraft for sale, specifications, transaction histories, and since 1997, fractional owners. Through the AMSTAT2000 and AMPS services, aviation sales professionals are able to use this reported marketed information to generate new business for their respective organizations. For more information, visit www.amstatcorp.com or contact Andrew Young at 877-4AMSTAT x147.