An Appraiser’s View of the Market
Last spring, we took an in-depth look at the market for some of the most popular King Air models. It’s a good idea to revisit the market to see what it’s been doing during the past year.
The King Air has been in continuous production since 1964. During those 52 years, there have been many different models produced. From the original 90 to the current 350i, there have been over 7,000 units manufactured encompassing an astonishing 25 separate and distinct models of King Airs.
With all of the various incarnations of the aircraft, there are many submarkets within a market. For example, the B200, which started production in 1981 and had its last rebranding in 2011, has at least seven submarkets within its production, making it impossible to generalize the entire market. Because there are so many market types, this article will focus on only the variants that are still in production – the King Air C90, B200, and 350.
The Avionics Effect
One of the biggest factors regarding used King Airs, both from a marketability and value standpoint, are its avionics. Many avionics systems in King Airs are facing obsolescence. This is going to force operators to choose to continue to try and use their current systems or to upgrade. Outdated avionics can’t only potentially ground the airplane, but can be more expensive in the long run to maintain than upgrading. Not only that, but many times your only solution to maintain your current system is to buy aftermarket avionics.
In addition to obsolescence, like all other aircraft, King Airs are going to be required to meet the 2020 FAA mandate to transmit ADS-B out. Currently there are a few options to meet this mandate. If you have a Universal UNS-1 FMS, you can upgrade your existing FMS to a WAAS unit, modernize a monitor and your transponders. If you have a Pro Line 21 system, you can upgrade your GPS to a 4000 Alpha GPS and your transponders to a TDR-94. You can also update your panel to a Garmin G1000, which includes ADS-B out standard.
While there are different upgrade options, I would advise you to consult with a good King Air service center if you have any questions. You will need to determine what is going to be the best option for you and consider the effect those improvements have to your airframe. As far as ADS-B out only solutions, you should also consider that the closer we get to January 1, 2020, avionics shops are going to get busier, leading to longer wait times and potentially higher premiums for service.
The C90
For this model, I will review the King Air C90B through the GTx. When looking at the C90 market, there are several defining points where the market views a production change significant enough to affect value beyond an adjustment for the model year.
The C90B was an improved version of the C90A. Introduced in 1992, this model featured new four-blade propellers, Collins avionics, and cabin soundproofing. All but a handful of 1992 models had Collins EFIS-84, and all had Pratt & Whitney PT6A-21 engines. There are 414 of this model currently in service. The King Air C90B was pretty uniform for its entire production run, and for the most part, its market is fairly homogenous. It is moving in the same direction with little difference at either end. The average number of days on the market for the C90B selling in 2015 was 703 days, with over six percent of the fleet sold. Market activity was down slightly in 2015, with three fewer units sold over 2014. For the C90B, prices declined slightly for 2015. The selling prices for an average aircraft are between $900,000 and $1,300,000, which is down about five percent from 2014.
Produced in 2006 and 2007, the King Air C90GT was an improvement over the C90B as the engines were upgraded to Pratt & Whitney PT6A-135A models. This provided a nearly 30-knot increase in airspeed and created a distinct market segment within the 90 series. The C90GT segment is quite small, with only 98 models produced. Prices for an average aircraft range from approximately $1,650,000 to $1,700,000. The average days on the market for a C90GT was 915 days, with just over seven percent of the fleet selling in 2015. Only seven C90GTs sold in 2015, which is a decline of four units when compared to 2014. The C90GT market appears to be trending downward slightly, with price declining around five percent in 2015.
In 2008, Collins Pro Line 21 avionics were added and the C90GT was rebranded as the C90GTi. This further segmented the C90 market and created a large value difference between a 2007 and a 2008 model. The C90GTi production run consists of 125 aircraft. Five units sold in 2015, representing four percent of the fleet. This is a slight decrease from 2014. The average days on the market for the ones that sold in 2015 was 1,026 days. Pricing for an average C90GTi range from approximately $1,800,000 to $1,900,000, and it dropped approximately five percent in 2015.
The final change to the C90 market came in 2010 with another rebranding. Winglets were added and the newest C90 was christened as the C90GTx. This model is the most current version of the C90, and has a current production of around 150 aircraft. Six preowned units sold in 2015, which represents four percent of the segment and is on par with 2014. Average selling time was 472 days on the market. Pricing for a used C90GTx is between $2,200,000 to $2,500,000 for an average aircraft, which is trending downward from 2014 by about 10 percent.
I have not mentioned the C90SE, which was produced from 1994 to 1999. This aircraft was produced as a lower cost version of the C90B, and featured Bendix King Silver Crown avionics, three bladed Hartzell propellers, and a more modest interior. They were equipped like an older C90A. Although priced $600,000 less than a C90B, only 14 units were produced as it wasn’t a favorite of the C90 buyers of the day. Today, they trade more closely with the C90A than the C90B.
Popular Upgrades
There are many upgrades available for the C90 series of King Airs that improve performance, comfort and utility of the aircraft. Some of the most popular upgrades that we see are the Garmin G1000 avionics, BLR winglets, Blackhawk PT6A-135A engines and Raisbeck enhancements like Dual Aft Body Strakes, Nacelle Wing Lockers and the Turbofan Propeller System. While it is impossible to determine the effect on the value of a particular airplane without evaluating that particular airframe, an aircraft with multiple upgrades could have its value changed by up to $500,000.
The B200
The King Air B200 has enjoyed an amazing production run with a basic aerodynamic design that has been largely unchanged for over 40 years. At first glance, it would be easy to group all of the B200s together as one single market, but I can point to at least seven distinct market segments.
The original B200 was an improved version of the King Air 200, produced from mid-year 1981 to 1984. For the 1981-1984 B200, approximately 280 airframes are still in service. Out of these, 29 sold in 2015, making up around 10.5 percent of this segment, which is equal to those sold in 2014. The average number of days on the market for a 1981-1984 B200 was 178 days in 2015. Prices for an average aircraft of this vintage is between $950,000 and $1,150,000, and is down slightly from last year, but remains fairly stable.
For model year 1985, improvements such as a hydraulic landing gear, three element wing spar, and triple fed electrical bus created a separate segment within the B200 market. This segment of the B200 market, produced in 1985 through 1993, contains roughly 250 aircraft that are still in service. Of these, there were 26 sold in 2015, which is eight more than those sold in this segment in 2014. This represents roughly 10 percent of that segment. The average hold time for the models that sold was 184 days on the market. Expect to pay between $1,200,000 and $1,500,000, which is down about eight percent from last year.
For model year 1994, improvements such as a standard four-blade propeller and a cabin noise reduction system created another market segment. In this segment, approximately 180 aircraft remain in service. Of these, 11 units sold to retail customers in 2015, which is on par for the activity in 2014. This represents six percent of that segment. The average hold times for those aircraft that did sell was 305 days. Expect to pay between $1,600,000 and $1,800,000 for an aircraft of this vintage. Pricing in this segment has shown some softness in 2015 with declines of about six percent.
A redesign of the B200’s interior occurred in 1999, as well as an increased TBO to 3,600 hours. Manufactured from1999 to 2003, this market segment contains approximately 190 aircraft. There were 15 retail sales in 2015, making up nearly eight percent of this segment. Sales were off by three units when compared to 2014. The average time on the market for the ones that sold was 388 days. Prices for an average B200 in this segment range from $1,900,000 to $2,100,000, which has declined around five percent during the past year.
Model year 2004 encompassed the biggest changes to date with the switch to a Collins Pro Line 21 avionics system. This created a several hundred-thousand-dollar difference in value between the 2003 and 2004 model years. This segment is the 2004 to 2008 Pro Line 21 market. It contains 157 aircraft with 12 sales in 2015, which was one less unit than 2014. Roughly eight percent of this segment traded hands last year, with a hold time on average of 148 days on the market. Pricing for this B200 segment is still relatively soft with values declining. Expect to pay between $2,300,000 to $2,500,000 for an average B200 of this vintage, which has declined about four percent from last year.
Another significant model change occurred in 2008 with the switch to Pratt & Whitney PT6A-52 engines, resulting in the aircraft being rebranded as the King Air B200GT. The B200GT has an active fleet of 115 units. There were eight retail sales in 2015, which is two more than in 2014, representing seven of this segment. The average number of days on the market for the aircraft that sold was 339 days. Pricing on the B200GT is still soft. Expect to pay between $2,800,000 and $3,300,000 for an average aircraft. The B200GT market lost around six percent of its value in 2015.
The last model segment occurred in 2011 with yet another rebranding. Composite curved propellers, winglets, and Raisbeck’s Ram Air Recovery were added to the B200GT to make the new King Air 250. There have been approximately 125 King Air 250s produced since 2011. There were seven used retail sales in 2015, which nearly doubles the transactions for 2014; this represents 5.5 percent of the fleet. The average time on the market for the aircraft that sold was 301 days. Pricing on the 250 is trending downward, the market fell significantly in 2015, losing around 10 percent of its value. Expect to pay between $3,400,000 and $4,100,000 for an average aircraft.
Popular Upgrades
The popularity and number of King Air 200s in service has led to a many aftermarket upgrades, more than any other type of King Air. The most popular upgrades we see are Garmin G1000 avionics, BLR winglets, Blackhawk PT6A-52 and PT6A-61 engines and enhancements from Raisbeck like Dual Aft Body Strakes, Nacelle Wing Lockers, Enhanced Performance Leading Edge, Ram Air Recovery and the Turbofan Propeller System. As with the 90 series, it is impossible to tell the effect on the value of the airframe without evaluating it on a case-by-case basis, but multiple upgrades to this airframe can change the value by up to $750,000.
The 350
The King Air 350 debuted in 1990. Although the model was largely unchanged until upgraded Collins Pro Line 21 avionics were added in 2004, there are still some areas of segmentation with often different activity levels at either end of the market.
Although the model for the most part didn’t change from 1990 to 1997, the newer models perform differently in the used market than do the older ones. For this market segment, there are roughly 190 airframes with 12 retail sales in 2015. This equates to about six percent of the fleet in this segment. Compared to 2014, there were two fewer sales for this segment. The average time on the market for these aircraft was 160 days. Pricing for this segment of the 350 market was stable in the first part of 2015, with falling prices during the second half. Expect to pay between $1,500,000 to $2,100,000 for an average aircraft, which reflects about a five percent drop from 2014.
For the 1997 to 2003 model years, there are around 190 airframes still in service with 19 retail sales last year – down five units from 2014. This represents 10 percent of the fleet with an average hold time of 139 days. Prices in this market segment have also softened a bit in the latter half of 2015. Expect to pay $2,150,000 to $2,500,000 for an average aircraft. This segment has also declined approximately five percent from 2014.
The 2004 to 2009 segment included the change to Collins Pro Line 21 avionics. There are 255 of these aircraft is service with 14 retail sales in 2015, which is three more than 2014. This represents six percent of this market segment with an average hold time of 168 days on the market. Pricing on these 350s are still relatively soft. Expect to pay $2,900,000 to $3,900,000 for an average aircraft, which is a drop of around seven percent from 2014.
The 350i was introduced in 2010 and featured an upgraded interior, as well as a sophisticated cabin management system. There have been 280 King Air 350is produced with 11 retail sales last year, four more than in 2014, representing four percent of the total fleet. The average time on the market was 389 days. The 350i market is still trending downward. Prices have fallen around 10 percent from 2014. Expect to pay between $4,100,000 and $4,700,000 for an average aircraft.
Popular Upgrades
Since the King Air 350 incorporated many enhancements at the factory, there are not as many aftermarket modifications available. Some of the most popular that we see, however, are Garmin G1000 avionics and Raisbeck Dual Aft Body Strakes and Wing Lockers. Like the other two markets, it is impossible to determine the effect on value without evaluating on a case-by-case basis, but multiple upgrades on a King Air 350 could change the value up to $450,000.
Summing it Up
As you can see, prices are down in 2015 for all of these King Airs. The newer models tend to take the biggest hit, as they are still on the steep part of their depreciation curve. Although pricing for the King Airs continues to be soft, the good news is that these aircraft have generally held their values better than their jet counterparts. Until we are able to see a healthier new King Air sales market, we are probably going to continue to see annual price declines.
NOTE: Figures for days on the market and aircraft transaction numbers are courtesy of AMSTAT.
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