The organization is comprised of 37 of the industries most established and respected new and pre-owned aircraft dealers along with an Associated membership comprised of 42 of the industries best aviation service providers. Each spring the organization holds an annual conference of the full membership to discuss the state-of-the-industry that leaves us all either encouraged or discouraged.

I’m more encouraged about the future then ever! Each of the aircraft dealers and industry service providers that attended were “cautiously optimistic” and reported an increase in overall business from the previous years. Several of the dealers in attendance actually reported that 2012 was the best sales year in their long history!

While it appears several aircraft models are very slow to sell, there are equally as many models that are experiencing brisk domestic sales. The data research firm Amstat reported that 13% of the jet market and only 8.2% of the pre-owned turboprop market is actively “For Sale.” These numbers represent a significant improvement since the economic down-turn we experienced in 2008. Our own research has revealed the difficulty locating pristine aircraft at fire sale price. Today’s prices of most makes and models are still below the 2007 industry high watermark. It’s encouraging for the dealer community to find the actual inventory levels declining and doesn’t take an economist to see the declining inventories of pre-owned aircraft will soon yield increased prices.

Banyan Aircraft Sales specializes in aircraft selection, valuation, negotiation, inspection and management of turbine powered aircraft.

Call Mike O’Keeffe to discuss your aircraft options: 954.491.3170

The Quest KODIAK lands at Banyan Air Service in less than 1000 ft.

Banyan is an Authorized Sales and Service Center for the KODIAK.

The Quest KODIAK departs from Banyan in 500 ft with 4 people on-board.

Banyan recently attended several industry conferences along with some of the most respected aircraft dealers and financial institutions. The reports from these conferences were both encouraging and concerning. The encouraging news (for the dealers) was that aircraft sales transactions had increased appreciably during the first quarter of 2012. According to data released by the market information firm JetNet, pre-owned business jet and turboprop inventories continued to subside in addition to the “average-days-on-market”. Similar findings were reported by the research firm Amstat whose research revealed fewer aircraft available for purchase today than 1-year ago. This is a continuation of a trend we’ve also observed in our own inventories. These are simple trends that indicate fewer available aircraft will soon mean higher prices, or at best, sellers that are less willing to deal.

It’s been our observation that finding “great deals” in most of the various jet and turboprop markets is becoming far more challenging. Many previously cautious aircraft dealers have started purchasing aircraft again for inventory. Most of the dealers we’ve spoken with have reported a flurry of activity in the first quarter. These are all very encouraging signs and we can only hope it’s sustainable. We’re all wondering if this is just pent-up demand? Historically, aircraft sales have tracked closely with the stock market and this year is proving no exception. This trend appears to be applicable only to pre-owned aircraft. Ironically, new delivered piston, turboprop and most jet aircraft deliveries are all down. The large cabin jets are experiencing robust sales with Asia being a leading consumer.

The discouraging news came from the banking community. It seems that new regulations being enacted within the banking world will make it even more challenging or at least costly to finance private aircraft. The days of buying an aircraft with a small 10% down payment financed over 20-years are probably gone for good. Only the strongest of borrowers who don’t need the financing will qualify for those kinds of terms. Credit is available but the conditions need to be right. With the likelihood that credit will soon be tightening and used aircraft prices will be rising, now’s the time to buy!!!!

Banyan Air Service based at Fort Lauderdale Executive Airport has recently been appointed as a Quest Authorized Sales Center for the KODIAK.

“Banyan is thrilled to be appointed as the KODIAK dealer for the Florida region,” said Michael O’Keeffe, Banyan’s senior vice president of aircraft sales.  “This is a natural complement to our existing maintenance service capability for the KODIAK, and we are proud to offer complete sales and service under one roof.”

Florida is a strong market for the KODIAK for charter operators, small businesses, personal owners, skydiving operations, U.S. and international government, and humanitarian organizations.

The KODIAK’s rugged aluminum construction combines superior short take-off and landing (STOL) performance and high useful load.  It offers proven turbine reliability with the Pratt & Whitney PT6 turbine engine, has the ability to land and take off from unimproved surfaces and is capable of working off floats without structural upgrades.  The KODIAK can take off in under 1,000 feet at full gross takeoff weight of 7,255 lbs and climb at over 1,300 feet per minute.  A 3-panel Garmin G1000 integrated avionics suite including Synthetic Vision Technology is standard equipment on the KODIAK.

The KODIAK can be outfitted with an External Cargo Compartment, air-conditioning and even a Jump package making this a versatile cargo-hauling work-horse or comfortable passenger transport.

In addition, to having the KODIAK on display at the Banyan Air Service facility, a 12 stop airport tour is being planned.

Quest Aircraft Company is the manufacturer of the KODIAK, a 10-place single engine turboprop utility airplane, designed for STOL use and float capability.  Headquartered in Sandpoint, Idaho, the company was established in 2011 and began deliveries of the KODIAK in December 2007.

Banyan Air Service based at Fort Lauderdale Executive Airport offers 24-hour FBO services, aircraft sales, heavy turbine aircraft maintenance, avionics, parts solutions, aviation store, on-line store at BanyanPilotShop.com and Jet Runway Café.  The company was established in 1979 and employs over 160 teammates.  For more information, please visit www.banyanair.com.

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These are very interesting times for the pre-owned aircraft market. Many of the statistical reporting firms that monitor the pre-owned turbine aircraft market have reported that inventories of used aircraft are continuing to shrink.

As we monitor the turboprop, light and medium sized jet markets we’ve observed a more concerning trend. Our observations have revealed that only the nicest, newest and lowest time aircraft are actually selling. If an aircraft is the nicest aircraft in their respective segment it will sell reasonably quick and command top dollar.

Many aircraft have been on the active market for a considerable time and receive very little interest. This indicates there are buyers for pre-owned turbine aircraft but it better be nice and not over-priced!

What happens to a market when all the nicest aircraft are sold and it’s left with tired old high time aircraft? At some point the inventory will stop declining and what’s left will be stagnant old aircraft that are virtually worthless. It used to be those older aircraft found their way into other countries where they continued to operate for years. That’s no longer the case; Latin America no longer has any appetite for these aircraft, if it isn’t shiny and new they don’t want it. This also holds true for most of the European countries.

We are seeing several models of older jets that appear to have little value in any market. There’s a recent example of a beautiful Falcon 50 being dismantled and sold for its parts, the sum of its parts are worth more than the aircraft in flying condition. It’s hard to imagine great flying aircraft being dismantled and sold for scrap. This however might become the new norm for several older generation aircraft.

By: Michael O’Keeffe, Sr. Vice President Aircraft Sales & Management

Each day I’m reminded of the dynamic nature of the pre-owned turbine aircraft market.  Banyan Air Service, along with many aircraft dealers throughout the world has seen wild fluctuations within in the various segments of the market.  We’ll see a month where there’s tremendous sales activity followed by a month where all sales activity seems to stop for no obvious reason. Historically these fluctuations had a longer frequency but now it’s every month the cycle changes.

There was a time when the pre-owned turbine aircraft market closely followed the stock market.  If the market was trending-up, the sales of aircraft trended-up and vice versa.  While we’ve continued to see volatility in the stock market, the trend has been an overall improvement. This holds true with aircraft but only to a certain degree.  About the time we start feeling optimistic about a recovery of the aircraft market, some news or world event brings the momentum to a grinding halt.  Today, there are fewer quality, low time aircraft available than 1-year ago; that is a positive trend.  Prices however have not followed suit.  The demand seems to be model specific though.  There are a small handful of aircraft models that are highly desirable right now that last year’s price tag simply won’t buy. Maybe this is a function of the small quantity being advertised for sale?

Within every segment of the turbine market from turboprop to light, mid and heavy jet, there are many great aircraft available for sale; some even have great prices!  The nicest aircraft within each segment are selling and they’re selling quickly and commanding top dollar. This is encouraging if you’re a seller and discouraging if you’re a buyer.

View a list of the current aircraft inventory to see what is available at Banyan Air Service.

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Aircraft Sales has started a new series of postcards that will be sent out each quarter that shows a quarterly market update. We sent our first card out in the winter of 2010 for the King Air-Pilatus market and starting this quarter we will be sending out one for the Citation-Beechjet and one for the Hawker-Learjet market. These postcards are a summary of quantity for sale, percentage of the fleet, what was sold over the past 90 days and the average days on market.

Hawker/Lear Spring Market Update

This exceptional Citation SII recently completed an extensive Phase 1-5 inspection in July and all inspections are current and the aircraft has no damage history or logbook issues. The aircraft is substantially upgraded with a Garmin 400 WAAS certified GPS, Skywatch HP Traffic Collision Avoidance System, WX-1000E Lightning Strike Detection System, Garmin GMX-200 Multi-Function Display with Jeppesen Chart-View, Safe Taxi and XM Weather! The aircraft is equipped with a Keith Freon Air Conditioning System and Aft Baggage Modification.

The most unique feature of this aircraft is the Thrane & Thrane High Speed Broadband system offering high speed internet connectivity along with satellite phone capability. This new system offers worldwide connectivity previously only found in much larger business aircraft.

Please call Kristin Jolley anytime  at 954.492.3554 to discuss this Citation in more detail or visit www.banyanair.com to view additional aircraft in our inventory.

This exceptional King Air 300 has just received freshly overhauled engines by Dallas Airmotive with Airtight Warranty and just completed an extensive Phase 1-4 inspection. All inspections are complete and current, new windows, fresh landing gear, new fuel tanks, new de-ice boots and all Mandatory Service Bulletins and A.D.’s complete.

The avionics panel has been substantially upgraded with a Garmin 400 WAAS certified GPS, Garmin GMX-200 Multi-Function Display with Jeppesen Chartview and Safe Taxi, Skywatch Traffic Avoidance System, Honeywell RDR-2000 color weather radar with vertical profiling and a Garmin GDL-69 XM Weather Datalink. The aircraft is complete with new paint and interior conducted by Rose Aircraft of Mena, Arkansas and looks new. The aircraft is squawk free and 100% turn-key and ready to fly with no damage history and exceptional logs and records.

Please call Kristin Jolley anytime  at 954.492.3554 to discuss this King Air in more detail or schedule a viewing at our Ft. Lauderdale Executive Airport location, or visit www.banyanair.com to view additional aircraft in our inventory.