The King Air market makes sense again!
At first, it doesn’t seem like it to those of us who live and breathe the Beechcraft King Air market daily because we have had years of conditioning that created what we consider “normal.” But when you look at it logically, the market today makes more sense than ever before.
The “Old Normal”
The “old normal” had values for King Airs that had become very compressed, meaning that within both the individual model markets and the overall market, values were actually very close together.
The top of the market is obviously the perch of Beechcraft’s flagship aircraft, the King Air 350/360.
One of the oddest areas of market compression existed between the very popular King Air B200 and the King Air 350. A few years ago, it had reached a point where the King Air 350/360s were so close to B200 prices that we were advising B200 clients to take advantage of the narrow delta and purchase a 350 instead! The King Air 350 series is a LOT more airplane than the King Air 200 series. The most notable difference is that the 350 has a spacious interior that comfortably seats eight adults. I often hear people bring up that the 200 has seven seats, but two people are facing each other and have very little leg room and one is sitting on the side-facing potty, which is not ideal. Since the B200 and the 350 are typically flown single pilot, an additional passenger may occupy the co-pilot seat. In addition to the roomier interior and eight captain’s chairs (instead of five or six captain’s chairs in the B200), the King Air 350/360 has a higher gross weight and useful load.
The downside, especially for an owner/pilot, is that the 350 series necessitates a type rating to fly due to its higher gross weight. The combination of the type rating requirement and corporate owners being less concerned about value retention at resale had caused King Air 350 values to soften compared to other models. As buyer’s reps, the best buys we made prior to the pandemic were in the 350/350i markets.
The lower end of the King Air 350 market also kept a cap on the micro-market for the King Air 300. Those who know me know that I have always been a huge fan of the King Air 300, partly because the model was always a lot of airplane for the money. Most people didn’t know what the 300 was, so lower buying pressure allowed the nicest King Air 300 to suffer under a value cap of about $2 million because early King Air 350s could be purchased for around $2 million. It didn’t make sense to pay over $2 million for a 1980s vintage King Air 300 when you could get a 1990s vintage 350! Especially since both require that dreaded type rating. This artificial cap on the King Air 300 market created some great buying opportunities and nice ones often sold for less than comparable Blackhawk B200s, sometimes as low as non-Blackhawk B200s!
The King Air B200 dominated the “old normal” market because of the sheer number of airplanes that were manufactured. It is the single most prevalent block of turbine aircraft in history, with over 1,300 built between 1981 and 2008.
The B200 market became the standard by which other King Airs were valued, meaning the King Air 90 series values directly depended upon the B200 values. As with the King Air 300 market, the market and values of 90 series King Airs were artificially capped by B200 values on the upper end and that cap caused the values of King Air 90s to be very compressed. A 2000 C90B didn’t sell for a lot more than a 1990 C90! There were two pet markets in the 90 series – the King Air F90 and the C90GT. Those two aircraft were also micro-markets, and as a result the lower buying pressure meant that good deals were often available, even in an already compressed market. The depressed resale values of the later model King Air 90 series like the C90GT/GTi/GTx, drove potential buyers into other models such as the King Air 250 and the Cessna Citation M2. This would become a major factor in Textron Aviation’s decision to discontinue the original model King Airs, a sad day for sure and one that doesn’t seem as logical in the “new normal.”
The “New Normal”
To be honest, I HATE that phrase but I don’t know how else to describe it. There are two different realities – what King Airs were worth prior to the 2020 pandemic and what they are worth today.
Even though it has taken folks like me a little while to accept the “new normal” of King Air values, the market makes more sense. The current market’s increased demand and buying pressures have caused the values of previously depressed, niche market airplanes like the King Air F90 and King Air 300 to increase to levels that actually make sense. The rarity of available options has caused those hidden gems to be sought out. The same pressure has also caused a sensible equilibrium to be found between the major models.
The “new normal” for the King Air 350/360 market is that those models sell for considerably more than a comparable B200/250/260 and those aircraft sell for significantly more than a C90B/GT/GTi/GTx. In addition to the models having a more sensible spread in values, there are also no deals to be found in the niche markets.
I avoid quoting differences in values, either actual or percentages, because there are far too many factors that affect those numbers. However, I feel it is necessary to give a couple of data points to paint a clearer picture of the King Air market as it stands today.
We were fortunate enough to represent buyers in 2023 for a 2023 King Air 260 (with 10 hours) and a 2023 King Air 360 (with 30 hours); the delta between those two airplanes was nearly $1 million. We’ve also recently represented buyers of a 2001 King Air B200 and a 2001 King Air 350. These aircraft had modifications including G1000 NXi avionics and the 350 had -67 Blackhawk engines, but if you adjust for the differences, you’ll come up with a delta of about $700,000. At the lower end, you may see a difference of $500,000, which should give you a good idea of the spread between a King Air B200/250/260 and a similar King Air 350/360. When you look at the differences between these aircraft models, it makes perfect sense because the King Air 350/360 is much more aircraft.
We also represented a legacy client in purchasing a 2001 G1000 NXi Blackhawk C90B. He originally wanted a second B200 to join the first one we purchased for him five years ago, but he decided the C90B would do everything he needed for – you guessed it – about $700,000 less than a comparable King Air B200. It’s odd that in recent history we would be involved in purchasing two 2023 models and three 2001 models, but it does give us an excellent opportunity to lay out the differences in values with good data points.
In summary, you can expect a jump of $500,000 to $1 million as you go up from model to model in the King Air line.
I’m still getting used to this “new normal,” but it does make sense.
What’s Ahead
This article was written focused on where the “new normal” was at the beginning of the year. I realize that everyone wants to know not how we got here but where we go from here!
It’s an election year and we’re already seeing the telltale signs that uncertainty unleashes upon a market – buyers are unsure of what will come. As a result, the market is softening across the board. If you plan on selling, I predict now is the time. I think the summer months will bring a slowdown as people “fly them instead of buy them” and combined with the negativity and uncertainty the looming election brings, it will only get worse. Regardless of what your aircraft will sell for today, I suspect it will be more than it will bring in July or August.
In the long run, values are likely to rebound. Good news is coming for many aircraft buyers, but you’ll have to grab the next issue of King Air magazine to find out what that is!
