Newspaper article THE JOURNAL RECORD

Used Aircraft Sales Up during 1986/but Sales of New Units Down

Newspaper article THE JOURNAL RECORD

Used Aircraft Sales Up during 1986/but Sales of New Units Down

Article excerpt

Change of ownership records kept by the Federal Aviation Administration indicate a 2.08 percent increase in aircraft sales activity for 1986 over the previous year.

However, no thanks for the increase are due new aircraft sales, said Bernie McGowan, editor of Aircraft Bluebook-Price Digest. McGowan is president of Aircraft Bluebook Corp., an Oklahoma City-based company that publishes the aircraft-market tracking digest.

- Title transfers in 1986 increased 2.08 percent to 82,632 from 80,945 the previous year.

- However, new 1986 aircraft sales were down 26.3 percent to 1,495 from 2,029 in 1985, according to the General Aviation Manufacturing Association.

In fact, new aircraft sales have declined steadily since their peak in 1978, when the General Aviation Manufacturing Association reported 17,811 aircraft had sold. Of notable contrast is the 1986 figure of 1,495.

The result has been higher used aircraft prices, McGowan said, and more sales activity in that area.

A study by McGowan tracks aircraft that are five, 10 and 15 years old in five major categories: jets, propjets, twin engine, heavy singles and light singles. His figures, he says, indicate activity in the entire market - new and used - is up 1.9 percent.

"I may be sticking my neck out," said McGowan, "but it is our opinion, here at Aircraft Bluebook, that 1986 found the fleet average (new and used) bottom and that 1987 will be an up year in relation to the past few years.

"It will continue to be spotty, with the undesirables showing losses, but I sure feel the overall averages will show strength."

When used aircraft that are four years old or older do not decline more than 4 percent in value during a year, we consider the market steady, he continued. …

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