An aeroplane in flight can’t beat the laws of physics. On the ground it can’t escape economics. Proof of the law of supply-and-demand’s effect on the price for second-hand aircraft, has never been stronger than in the last few years – the period before and after COVID. Like the property, and second-hand car markets, prices have skyrocketed to unimaginable levels.
Just like the classic diagram of an aeroplane in flight, with lift, weight, thrust, and drag, there are multiple forces driving second hand aircraft values, both up and down, as well as increasing or decreasing the volume of aircraft on the market.
Up, up, and more up
Prices for good second-hand aircraft, of most types, in major markets, are said to have risen, in the last two to three years, in the range of 20-30%, and in some cases, 40%.
For some hard data on the US and Canada aircraft market, Sandhills Global, which owns Controller, Controller EMEA, Executive Controller, Charter Hub, Aviation Trader, Aircraft Cost Calculator, and Aircraft Evaluator, reported that “Average asking values for used piston single aircraft grew by [US]$38,000 year-on-year in January, moving from $187,000 in 2021, to $225,000 in 2022; inventory levels for piston single aircraft were down 40% year on year. Nearly half of piston single aircraft fall into the 25-year-plus age group … which also displayed the steepest asking value increase
