Asia: Inventory values decreasing
Helicopter inventories are now decreasing in Asia for the first time since Asia Sky Group started its report in 2016.
The inventory value for all helicopters on the market in Asia has fallen from around $170 million at the end of 2017 to $113 million as of June 2018.
This news could be taken one of two ways. Either more helicopters are being shifted as certain key markets such oil and gas recover or as ASG managing director Jeffrey Lowe notes, the demand for multi-mission helicopters continues to rise.
However, it could also be telling that helicopters are finally being taken off the market due to a lack of interest. The time on market of helicopters in the Asia region continues to increase, specifically for the heavy helicopters including the H225, S92 and the S76C.
The civil turbine helicopter fleets across Asia has continued to increase in almost every region across Asia.
China’s fleet growth has slowed from the substantial increase seen in 2016-2017 to 2017-2018Q1 whilst Australia has seen an uptake in its overall fleet numbers, potentially due to the number of offshore operations for both oil and gas and offshore wind opportunities opening-up in the Eurasia region.
Multi-mission helicopters make up the majority of the Asian helicopter fleet, making up more than half of the total number, with 472 multi mission helicopters representing 57% of the 832 helicopters. Corporate helicopters are the second largest sector with 97 helicopters and offshore in third with 85 helicopters.
Buyers and sellers
Whilst oversupply of aircraft is still and issue and the time on the market of helicopters continues to increase, light-twin helicopters continue to sell.
The Asian Sky Group reports that the AW109SP and EC145 are moving towards a sellers’ market in Asia whilst most of the other biggest helicopter models have a balanced supply and demand.
However, two of the most popular oil and gas models, the S76C+ and S76C++ are moving further towards a buyers market. The S76C+ right now is spending an average of 866 days on the market before a sale or being removed.
To summarise the inventory trends, Mr Lowe said: “In the end, any step toward a Seller’s Market, like we are seeing with business jets, for helicopters is far off and all we can do is wait and see.”
The full report can be read here.