A Market Perspective from the NAAA

In general the market has been in good shape through the winter. The turbine market is strong with many of those aircraft going overseas into developing countries. It appears as though the recent drop in interest rates may bring more buyers to the market and that should help with piston aircraft sales.

Many turbine purchasers cannot find the aircraft they are looking for so they are looking at older aircraft that are well equipped and will meet their needs for the foreseeable future. We can expect late model turbine values to continue to increase through the spring and summer.

With the lowered interest rates many aircraft owners are refinancing their aircraft to get more equity out of them and to lower their payments. This means more appraisal work for our members and is probably a driving factor in the winter business.

Market Trend Data

The NAAA has already started displaying trend data for aircraft on Trade - A - Plane's website for a select number of aircraft.  This is something than no other organization can do since the NAAA is the only organization that has collected actual sales data since 1980.  As more aircraft are added or as it becomes appropriate, clients will begin seeing market trend data in their reports.  At this time, the data goes back to 1998.  Expect future developments in this area.

GAMA Numbers Released

From AVweb: 

It's no surprise to anyone in aviation that 2007 was a good year but just how good a year it was became clear in Washington, D.C., on Tuesday. The General Aviation Manufacturers Association released its annual statistics on aircraft deliveries, and business jets simply blew away other sectors in all aspects. "Aside from the record set for year-end billings, the industry also experienced an all-time high in business jet shipments, delivering over 1,000 units for the first time in history," GAMA reported. In fact, business jets accounted for more than 25 percent of the impressive total of 4,272 aircraft sold in 2007, with 1,186 delivered. The business jet tally was up 28.4 percent over 2006's total of 886. Turboprop numbers were also up at 459 (412 last year) and piston aircraft sales were down slightly at 2,675, compared to 2,755 in 2006.

Cessna delivered a total of 388 jets. The most popular was the XLS (82), followed by the CJ3 (78). Cessna shipped 45 entry-level Mustangs in 2007, a number that will go up considerably this year as production ramps up in Independence. Cessna sold by far the most airplanes, a total of 1,274 piston, turboprop and jet aircraft. But the $3.9 billion derived from those sales was far behind the money leader. Bombardier's 226 deliveries were worth $5.2 billion. Gulfstream, with 136 deliveries, collected $4.8 billion. Hawker Beechcraft sold 351 aircraft, most of them jets and King Airs, and took in revenue of almost $1.9 billion.

Adam Employees Hopeful, Industry Less So.

From AVweb:  There appears to be little optimism among aviation industry leaders that Adam Aircraft will be resurrected. Sources speaking on condition of anonymity have told AVweb that the prevailing opinion is that the company will fold. Adam officials are expected to reach a decision on the future by the end of this week after suspending operations on Monday. Hours after being sent home, employees gathered JD's Bait Shop Sports Grill were relatively upbeat. According to the Denver Post, rather than crying in their beers, the 20 or so Adam employees there expressed hope that someone with money will see the company they way they do. "We're all here tonight because we love this company," quality control worker Ray Romero told the Post. "We want to be there, but there's no money. We're a privately funded company. We have a beautiful product." About 500 remaining workers got the word after lunch on Monday that Adam had failed to raise the $100 million it needs to get the A700 jet certified and in production and to ramp up production of the already-certified A500 piston twin. Adam spokeswoman Shelly Simi also held out hope that funding could be found. "It's a very dynamic situation. We are looking at alternatives," she told AVwebBiz in a phone interview. A final decision on the fate of the company is expected within a week.

In a news release, Adam said it was forced to close the doors "due to the inability of the company to come to terms with their lender for funding necessary to maintain business operations." The news release doesn't identify the lender but previous rounds of financing, totaling almost $300 million, have included such major investment houses as Goldman, Sachs and Co. and Hunt Growth Capital as participants. In January, Adam announced that it needed $30.5 million in interim financing to allow its current financial partner, Citibank, the time to find the $75 million to $150 million it needed to get into production and start selling against a backlog of orders the company estimated to be worth $1 billion, according to some reports. In a letter to shareholders leaked to the media in late January, CEO John Wolf said that if the company didn't have the $30.5 million by the end of January, the company was likely doomed.

As little as a week ago, company officials were claiming that the search for funding was continuing and that production of the fifth A700 jet was under way. The jet has not achieved FAA certification but the A500 push/pull piston twin has. Adam has reportedly sold 17 of the piston aircraft and delivered seven. Meanwhile, the city of Pueblo, Colo., didn't wait for Monday's announcement to demand $2 million in incentives it says should be returned. The city says Adam promised to create 448 jobs and actually created about 90, most of which disappeared in a round of layoffs and plant consolidations in January. The city of Pueblo has placed liens against Adam's equipment in the city-owned buildings that were part of the incentive package.

Hawker Beechcraft Type Certifies Hawker 750

From AVweb: 

Hawker Beechcraft Corporation announced on Tuesday that the FAA has awarded type certification to its newest aircraft, the light-midsize Hawker 750. The Hawker 750 has the same fuselage and wings as the midsize Hawker 800 series, providing the largest cabin in the light-midsize aircraft segment, the company says. The new model aims to reach new customers for the company, and is already sold out through 2010. "This aircraft has the perfect combination of reliability and operating efficiency, while incorporating a large luxurious cabin with internal and external baggage areas," said Brad Hatt, president, Commercial Aircraft. The 750, which can carry up to eight passengers, has a 2,116-nm NBAA IFR range.

It will be driven by two Honeywell TFE731-5BR engines. Prices start at $12.2 million.