Aero Asset bullish for ‘Q3 and Q4 light and medium twin-engine sales’
Aero Asset recently published its second quarter Heli Market Trends report, showing 15% stronger pre-owned twin engine helicopter sales volume in the first half of 2021.
Deals were down from the first quarter – especially in the medium twin and light twin sections. Valerie Pereira, vice president of Market Research for the company, told Helicopter Investor: “We observe seasonal drops from Q1 to Q2. However, as it’s so close to the end of Q2, we focus on semester [6-month period] sales results – which give us clearer trends.”
Pereira and the company are bullish for the third and fourth quarters – particularly in the pre-owned light and medium twin-engine market.
“We project supply for sale will continue to decline in these segments and retail sales volume will stay strong,” she said.
In terms of where transactions have been taking place, Aero Asset’s report said North America led transaction volume – after trailing Europe last year – accounting for half of global preowned twin engine helicopter transactions to date in 2021.
In Europe twin engine demand slowed since the fourth quarter of 2020, according to Pereira, and supply increased over the same period. “We project in both these regions an increase in demand and drop in supply over the next semester,” she said.
Heavy helicopter sales have not looked promising in 2021, according to the report. The sales of pre-owned Eurocopter EC225 Super Puma and Sikorsky S-92 saw a strong uptick in 2019 and 2020, fuelled by major operators streamlining their fleet through chapter 11 restructuring, according to Pereira.
“The first semester of 2021 resembles that of 2017/2018 which saw less than a handful of retail pre-owned transactions in these two markets. It will be interesting to see whether the second semester of 2021 confirms or upends this trend,” she said.
The Aero Asset Heli Market Trends report can be found here.
Heli Market Trends – at a glance:
- Total Q1/Q2 retail sales increased 15% vs same period 2020
- Supply for sale continued decrease, 10% lower year over year
- Deal pipeline declined Q2 after 2 consecutive quarters of growth
- Total Q1/Q2 VIP sales volume rose 40% YOY, the strongest increase across all segments