Lear 45XR, Lear 60XR, Lear 70/75
The Lear 45XR market saw a decrease in the number of retail transactions in Q4 2017. There were a total of six retail transactions, down from seven retail transactions in Q3 2017. The average asking price has increased from $3.157MM in Q3 2016 to $3,439MM in Q4 2017. We may have found some pricing stabilization during the latter portion of 2017 and it seems it may continue through 2018. There are currently 10 aircraft available for sale or approximately 5% of the active fleet, down from 7% in Q3. It looks as if sellers have finally accepted the values of their airplanes and buyers have started to complete transactions. Hopefully 2018 and beyond will continue on that trend.
The Lear 60XR market saw an increase in the number of transactions in Q4 2017 from Q3 2017. There were a total of five retail transactions in Q4, up from three retail transactions in Q3. The number of aircraft for sale has continued to decrease from 11 to 10 in Q4 2017 or approximately 9% of the fleet. The average ask price during Q4 decreased from $4.149MM from Q3 to $4.09MM in Q4. We are not ready to declare that prices have stopped falling as values continued to decrease in Q4 2017. However, we may be reaching the tipping point and could see some stabilization in values during 2018.
The Lear 70/75 had four retail transactions in Q4 of 2017 and has had nine transactions during all of 2017. The number of aircraft for sale remains relatively low at six aircraft or 4.7% of the active fleet. Market trends have been difficult to establish because of the small number of aircraft built and so few transactions. However, we can confirm that pricing is currently trending lower and we expect that to continue through 2017.