Commercial, Personal/Corporate, Public Service

HeliValue$: Buyers More Interested in Old than New Aircraft

By S.L. Fuller | April 25, 2017
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Leonardo AW139

Photo courtesy of Leonardo

Buyers appear to be buying, HeliValue$ reported after its first quarter Blue Book pricing review. HeliValue$ said 2017 is so far, so good.

“The year is starting off with some good news,” the company said. “This quarter, for the first time since 2009, values have increased for a few models. There has also been a notable increase of reported sales transactions in the first quarter. Perhaps buyers are beginning to take advantage of the rock bottom prices for some of the aircraft on the market.”

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HeliValue$ noted that older aircraft are moving more than new aircraft. The Airbus Helicopters AS350 B2 is seeing more market action than the newer Bell Helicopter 407s. HeliValue$ offered that the cause could be that newer aircraft are more than operators need to fulfill the limited utility work that is being contracted. Values for light twins have also decreased to a record low, which aligns with the amount of contracts they could try to win. Mediums are also struggling in the market place, HeliValue$ said. The exception to that is the Leonardo AW139. It said the helicopter is the “go-to helicopter for the offshore industry [that] has grown to love this model.”

Choosing not to publish resale values or provide valuations on the Airbus EC225 LP or the AS3322L2, HeliValue$ said it will wait until the investigation into the Norway crash has been completed to do so. It did report that market demand and asking prices has been declining over the past two quarters for the Sikorsky S-92. There are more of that model in the market, as there are more contract renewals. However, HeliValue$ said some are opting to not renew with the S-92 and instead go with a super medium. CHC’s efforts to emerge from bankruptcy have also paid off for the market, as aircraft have been returned to leasing companies.

“There are some bright spots, but the oil market probably has the biggest impact on the helicopter industry as a whole,” HeliValue$ said. “We will continue to see instability in the market as the industry settles into the new reality of sustained low ppb oil becoming the norm, not just a momentary downturn.”

During the first quarter review, HeliValue$ made adjustments resale pricing adjustments for:

Airbus AS350B2, AS355N, EC155B1, AS365N3

Leonardo AW109E, AW109S, AW119K

Bell 206BIII, 206L-3, 206L-4, 407GX

Sikorsky S-76A++, S-76C, S-76C+, S-92A

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