Cox Business Jet, and TP Market Report

It is all about the number of Retail Sales

The Cox Jet & TP Index indicates a rise during the past 6 months, for two reasons:

  1. The Percentage of Aircraft For Sale has gone down by 42 percentage points, overall (1% = 100 points), but the ‘Percentage for Sale’ of the Aircraft used to create the Cox Market Composite Index, has dropped by 59 percentage points
  2. The Dow Jones Industrial Average continues its upward march

Slide1

However, the used Business Jet, and Turboprop market is not as healthy as it was 6 months ago, as indicated by the following data points:

  1. The ‘Low Asking Price Average’ of the Cox Market Composite Index has dropped by almost $81,000 (from $4,257,955, down to $4,177,000)
  2. The ‘Days on Market’ of the Cox Market Composite Index has increased by 2 weeks (from 194 days, to 208 days)

A better way of illustrating the current health of the used Business Jet, and Turboprop market, is by analyzing the number of ‘Used’ Retail-to-Retail, Sales Transactions, by Quarter, since the economic plunge that was the Global Financial Crisis (GFC), to-date:

Slide2

As you can see from this graph, the data shows that we are currently (Q2, 2017) less than 10% away from the low-point of least sales transactions seen in Q1, 2009. Basically, I believe the reasoning behind this significant data is because: In Q1, 2009, as a large number of business aircraft owners were still realizing the full consequence of the cliff-drop (GFC) that happened in October 2007. Everything, including aircraft changes; either ‘step-up’, ‘downsizing’, or ‘getting out’ of their business aircraft was firmly on hold, hence the significant reduction in Quarterly Sales Transactions during that period. Now today, the same is true on the mindset regarding aircraft changes. But instead of getting to grips with GFC; today a large number of business aircraft owners are sitting still while they await the course of history to provide a readable, and actionable trend, for the following questions:  i.e. Is the Trump Administration ‘Making America Great Again?’, or is it piloting the country into a ‘death-dive?’; Is Islamic Extremism going to take over the World, while millions are annihilated in the name of religion?; Is Climate Change a real threat to our planet, or just invented science that uses skewed data?; are we on the brink of the ‘mother’ of all GFC’s?

Here are the rest of the Market Report graphs:

Slide3

Slide4

Slide5

Slide6

Slide7

Slide8

 

 

Leave a Reply