An Appraiser’s View of the King Air Market
As an aircraft appraiser, I often get casual questions like “what’s the King Air market doing?” My standard answer is, “it depends.” When looking at an aircraft that has been in production as long as the King Air, there are many variables. It is generally impossible to accurately describe what an entire market is doing based on the many production changes to that particular model.
Not many airplane models can claim continuous production for 50 years. With production starting late in 1964, the King Air’s success and versatility has led to many variations over the past five decades. With each variation comes a different type of buyer with a different mission profile and a different type of market.
While all King Airs are not created equal, this leads to the creation of many different market types. This is seen not only in the model variation – C90, B200, B300, etc., but within each model, there can be half a dozen markets due to variances on what came standard on the airplane during given model years. All of these differences tend to cloud the market and make it very difficult for King Air owners to truly understand the value of their aircraft.
Because there are so many market types, in this article, we are going to focus on only the variants that are still in production – the King Air C90, B200, and 350. We also will not focus on after-market modifications as these can greatly affect the value of the aircraft.
King Air C90
For this discussion, I am going to review the King Air C90B through the GTx. When looking at the C90, there are several defining points where the market views a production change significant enough to affect value beyond an adjustment for the model year. For example, the King Air C90B was pretty uniform for its entire production run. All but a handful of 1992 models had Collins EFIS-84, and all had Pratt & Whitney PT6A-21 engines. For the most part, the C90B market is fairly homogenous. It is moving in the same direction with little difference at either end. Produced in 2006 and 2007, the King Air C90GT was an improvement over the C90B as the engines were upgraded to Pratt & Whitley PT6A-135 models. This provided a nearly 30-knot increase in airspeed, and created a distinct market segment within the 90 series. In 2008, Rockwell 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 final change to the C90 market came in 2010 with another rebranding. Winglets were added and the newest C90 was christened as the C90GTx.
The C90 market is the most sluggish of the King Airs. For the C90B, prices declined about nine percent in 2014. The selling prices for an average aircraft are between $900,000 and $1,400,000. The average number of days on the market in 2014 for the C90B was 230 days, with nearly 12 percent of the fleet sold. However, indications are pointing to a stable C90B market.
The C90GT segment is quite small, with only 98 models produced. Prices for an average aircraft range from approximately $1,750,000 to $1,800,000. The average hold time of a C90GT was 253 days, with just under 10 percent of the fleet selling in 2014. The C90GT market appears to be stable at this time.
There were 125 King Air C90GTi models produced, and six units sold in 2014, representing just under five percent of the fleet. The average days on the market in 2014 for it was 125 days. Pricing for an average C90GTi model ranges from approximately $1,900,000 to $2,000,000. Currently, pricing has stabilized for the C90GTi.
The C90GTx, which is the most current version of the C90, has a current production of about 132 aircraft. Six units sold in 2014, which represents four-and-a-half percent of the segment. Average hold time was 261 days on the market. Pricing for a used C90GTx is between $2,200,000 to $2,700,000 for an average aircraft. The pricing on the used C90GTx is trending downward.
King Air 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. For the King Air B200 market, I can point to at least seven distinct market segments. The original B200 was an improved version of the King Air 200, from mid-year 1981 to 1984. 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 its market. For model year 1994, improvements such as a standard four blade propeller and a cabin noise reduction system created another market segment. In 1999, there was a redesign of the B200’s interior, as well as an increased TBO to 3,600 hours. Model year 2004 encompassed the biggest changes to date with the switch to the Rockwell Collins Pro Line 21 Avionics System. This created a several hundred thousand dollar difference in value between the 2003 and 2004 model years. Another significant model change occurred in 2008 with the switch to Pratt & Whitney PT6A-52 engines, which resulted in the aircraft being rebranded as the King Air B200GT. 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.
For the 1981-1984 B200, approximately 280 airframes are still in service. Out of these, 29 sold in 2014, making up around 10.5 percent of this segment. The average number of days on the market for a 1981 to 1984 B200 was 388 days in 2014. Prices for an average aircraft of this vintage is between $1,000,000 and $1,200,000, and remains fairly stable.
The next segment of the B200 market, produced in 1985 through 1993, contains roughly 250 aircraft that are still in service. Of these, there were 18 sales to retail customers in 2014. This represents roughly seven percent of that segment. The average hold time for the models that sold was 371 days on the market. Expect to pay between $1,300,000 and $1,600,000.
In the 1994 to 1998 segment, around 180 aircraft remain in service. Of these, 10 units sold to retail customers in 2014. This represents five-and-a-half percent of that segment. The average hold times for those aircraft that did sell was 393 days. Expect to pay between $1,700,000 and $1,900,000 for an aircraft of this vintage. Pricing in this segment has been very firm in the past year with pristine aircraft selling quickly.
The 1999 to 2003 sector contains approximately 190 aircraft. There were 18 retail sales in 2014, making up nearly nine-and-a-half percent of this sector. Average days on the market for the ones that sold were 388 days. Prices for an average B200 in this segment range from between $2,000,000 to $2,200,000, and it is pretty active with pricing pretty firm.
The next segment is the 2004 to 2008 Pro Line 21 market. It contains 157 aircraft with 13 sales in 2014. Roughly eight percent of this section traded hands last year, with a lengthy hold time averaging 462 days on the market. Pricing on a B200 in this part of the market is still relatively soft with values still declining. Expect to pay between $2,400,000 to $2,600,000 for a B200 of this kind.
The B200GT was introduced in 2008 and has an active fleet of 116 units. Only six of these aircraft sold in 2014, representing five percent of this segment. The average number of days on the market for the aircraft that sold was 406 days. Pricing on this model is still soft. Expect to pay between $2,900,000 and $3,500,000 for an average aircraft.
There have been approximately 100 King Air 250s produced since 2011, with four used retail sales in 2014; this represents four percent of the fleet. The average number of days on the market for the aircraft that sold was 166 days. Pricing on the 250 is trending downward. Expect to pay between $3,900,000 and $4,500,000 for an average aircraft.
King Air 350
The King Air 350 debuted in 1990. Although the model was largely unchanged until it upgraded to Rockwell Collins Pro Line 21 avionics in 2004, there are still some areas of segmentation with different activity levels at either end of the market. As mentioned, the avionics upgrade in 2004 created a distinct segment in the 350 market. The final upgrade to this series was an upgraded interior and a rebranding as the King Air 350i.
Even though the 350 is largely unchanged from 1990 to 2004, the newer models perform differently in the used market than the older ones. For this market segment, there are roughly 180 airframes with 10 retail sales in 2014. This equates to about five-and-a-half percent of the fleet in this segment. The average days on the market for these aircraft was 194 days. Pricing on this part of the 350 market is stable. Expect to pay between $1,800,000 to $2,250,000 for an average aircraft.
For the 1997 to 2003 model years, there are around 190 airframes still in service with 24 retail sales last year. This represents 12.6 percent of the fleet, with an average hold time of 397 days. Prices in this market segment have softened a bit in the latter half of 2014. Expect to pay $2,300,000 to $2,600,000 for an average aircraft.
The 2004 to 2009 segment includes the change to Rockwell Collins Pro Line 21 avionics. There are 255 of these aircraft in service with 11 retail sales in 2014. This represents 4.3 percent of this market sector with an average hold time of 377 days on the market. Pricing on these 350s are still relatively soft. Expect to pay $3,000,000 to $4,200,000 for an average aircraft.
There have been 240 King Air 350i’s produced with seven retail sales last year, representing three percent of the total fleet. Average hold time was 325 days on the market. The 350i market is still trending downward. Expect to pay between $4,600,000 and $5,000,000 for an average aircraft.
In Summary
For those King Air markets that are still experiencing soft or downward pricing trends, there are a couple of reasons for this. First is the natural depreciation cycle that occurs on most new aircraft for the first few years. After five years or so, the depreciation slope begins to ease significantly. Second, the price of near new aircraft is affected by whatever programs or incentives the manufacturers may have on new aircraft.
As you can see, there are many facets to the King Air market, and we have only discussed three basic models. In order to understand it, you must break it up into the natural market divisions. Once that is done, it is easier to understand the different segments within any of the King Air models.
Note: Figures for average days on the market and aircraft transaction numbers are courtesy of JETNET LLC.
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