Articles

Second Quarter Blue Book Updates

HeliValue$, Inc. held its second quarter Blue Book pricing review on June 30, 2017.  Resale pricing adjustments were made for the models listed below. 

Airbus EC-135P1, EC-135T1, EC-135P2
Bell 412, 412HP, 412SP, 429
Sikorsky S-76B, S-76C, S-76C+, S-76C++
 
Resale pricing adjustments are based on actual sales transactions and current market conditions such as overall trends in asking prices, increase or decrease in supply, demand, and sales volume. We obtain sales pricing data from owners and operators, lenders and lessors, brokers and equipment manufacturers worldwide.
 
While we do review all models each quarter, frequently traded models are updated as soon as they begin to show variation from the previously published values.  Stay up-to-date on resale pricing changes by purchasing an annual subscription.

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Norway and the UK have announced plans to lift the Airbus H225 grounding, however the investigation into the April 2016 crash continues.  Unions and most of the supermajor oil companies have stated that they will not consider putting the H225 back into service until the root cause of the incident is determined.  Shorter Time Before Overhauls (TBOs) and Time Before Inspections (TBIs) within the main gearbox, and the newly mandated safety presentation to restore the H225 back to flying status may also have an impact any decision to put the aircraft back in service. In the meantime, operators have not found it difficult to fill the gap with other aircraft like the S-92 and the AW-139.
 
The helicopter industry, in general, continues to do fairly well. An active fire season has helped light single and twin turbine engine models in North America and used corporate configured helicopters have seen an uptick in sales. However, the used helicopter market continues to feel the impact of the recession, the loss of mineral and exploration contracts, and the oil and gas downturn.  There has been some overall improvement in the used market mostly due to a decrease in single light inventory levels. Medium and heavy inventory continues to grow especially offshore equipped models. As leasing has become the go to solution in today's market, used resales have dwindled with fewer and fewer transactions taking place each quarter. OEMs, brokers, and consultants are all feeling the effects.  
 
New sales have also been impacted by lessor activity and the prolonged oil and gas downturn.  With a shrinking number of available contracts and the lessor's ability to easily fill those contracts with new or lightly used aircraft, potential buyers are finding it more financially beneficial to consider a leasing option over a new purchase from the OEM.  
 
What is becoming more and more obvious is that leasing companies are changing the face of the helicopter resale market.  The result is that most new deliveries are going to leasing companies and municipalities rather than operators and the resale market continues to be stagnant.  

 


 

Helitech 2017

 

VP of Operations, Jason Kmiecik will be attending Helitech 2017.  He will be available to for meetings October 1-4. Please contact HV$ here to schedule an appointrment.

 

 


 

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