Since the pre-owned market began to back off from its massive inventory figure nearly a year-and-a-half ago, much focus has been given to the movers, which for the most part have been just about every late-model current-production aircraft. In contrast, several model types have yet to experience much reduction in inventory. In fact, some are bucking the overall trend, highlighting the dichotomy among model types. Could this be the time to capitalize on these market laggards, or will their values continue their decline?
The Citation II and Learjet 35A, at one time barometers of the market’s direction, are two examples in the light jet category that have trailed the market. The Citation II currently presents 121 aircraft for sale–10 more than its 12-month moving average. It’s a far cry from the white-hot days of 1997, when the average supply of Citation IIs was 45 airplanes. The 121 aircraft now offered represent the highest number in 12 months, this after pressing down to 103 last August. There is no shortage of early Citation IIs in the $1 million to $1.5 million range, and late models can climb into the high $2 millions. While DRVSM is closing in, jet-tracking service JetNet revealed that only a small percentage of Citation IIs are already compliant. Perhaps this has contributed to the about-face that has occurred since last summer.
