Lear 45XR, Lear 60XR, Lear 70/75
The Lear 45XR market saw a decrease in the number of retail transactions in Q3 2017. There were a total of seven retail transactions, down from eight retail transactions in Q2 2017. The average asking price has dropped from $3.463mm in Q2 2016 to $3,157mm in Q3 2017. We may have found some pricing stabilization during the early portion of 2017 and it seems it may continue through the end of 2017. There are currently 16 aircraft available for sale or approximately 7.7% of the active fleet, down from 11% in Q2. It looks as if sellers have finally accepted what the values are of their airplanes and buyers have started to complete transactions. Hopefully Q4 and beyond will continue on that trend.
The Lear 60XR market saw a decrease in the number of transactions in Q3 2017 from Q2 2017. There were a total of three retail transactions in Q3, down from six retail transactions in Q2. The number of aircraft for sale has continued to decrease from 12 to 11 in Q3 2017 or approximately 9.7% of the fleet. The average ask price during Q3 decreased from $4.312mm from Q2 to $4,149mm in Q3. We are not ready to declare that pricing has stopped falling; values continued to decrease in Q3 2017. However we may be reaching the tipping point and could see some stabilization in values during the remaining portion 2017.
The Lear 70/75 had one retail transaction in Q3 2017 and has had only five transactions for the year. The number of aircraft for sale remains relatively low at five aircraft or 4.2% of the active fleet. Because of the small number of aircraft built and so few transactions, market trends have been difficult to establish. However, we can confirm that the pricing is currently trending lower and expect that to continue through 2017.