After four consecutive quarters of decline, the deal pipeline, which tracks the number of preowned twin engine helicopter deals pending at various stages of transaction, rose in the fourth quarter. So says Toronto, Canada-based helicopter brokerage Aero Asset's 2020 Heli Market Trends annual report, in which it forecasts bullish preowned twin engine market conditions for 2021.

“The heated transaction pace observed at the end of 2020, an expanding preowned deal pipeline and the pandemic vaccine rollout support the making of a bullish market,” comments VP of market research Valerie Pereira. “Following a heli market roller coaster ride last year, most indicators point to a healthier trend. As COVID-19 ramped up through the second quarter, preowned twin engine helicopter retail sales volume dropped by half. While the market went into hypotension, a strong recovery was just around the corner.”

Markets showed resilience in the last half of the year, with retail sales units on par year over year. Overall, 2020 preowned retail sales units rose 10 per cent year over year, and 2020 saw the most retail transactions of the last four years. Following a sharp rise in the number of units available for sale over the last two quarters of 2020, supply for sale units rose eight per cent year over year.

The overall absorption rate across all models and asset classes remained constant with 20.5 months of supply at 2020 trading levels versus 21 months in 2019.

With the Sikorsky S-92 and Airbus H225 markets both performing strongly, the heavy weight class market saw the biggest rise in transaction volume of all weight classes last year and nearly twice as many retail transactions year over year. Heavies represented 12 per cent of all units sold in 2020 and 20 per cent of the aggregate transacted value.

The Leonardo AW139 was the best performing medium twin market in 2020, representing 40 per cent of all medium unit transactions. Medium twins accounted for 30 per cent of all units sold and nearly 40 per cent of the total transaction value for all models and weight classes.

The Bell 429 saw the strongest increase in light twin sales in 2020 and represented 15 per cent of all light twin unit sales. The light twin market was stable during 2020, representing 58 per cent of all units sold last year.

There were a total of 143 units sold in 2020, up 10 per cent from the previous year. Those retail sales totalled $516 million, an increase of 16 per cent from the previous year.

At the end of 2020 there were 245 units for sale worth approximately $941 million, up eight per cent from 2019. The absorption rate was down slightly year over year to 1.7 years, and 29 units were deal pending at various stages of transaction in the deal pipeline.