AVJET CORPORATION MARKET TRENDS >
Large Cabin Jet Market Trends
Avjet's sales team of market analysts are sought after on a frequent basis by both the general business aviation industry such as Blue Book, Vref and other appraisal firms, and also by the large Wall Street research houses which cover the aerospace sectors and, more specifically, general business aviation. Avjet shares its industry-leading research with investment firms JPMorgan, UBS Securities, Bank of America and Morgan Stanley due in large part to the volume of aircraft sales and purchases we engage in. Our analysts not only provide information to these organizations, but are also asked to speak to groups of other analysts, investors, brokerage clients and aerospace experts. Avjet analysts were also keynote speakers at Morgan Stanley's Aerospace Conference in May of this year.
Check back frequently for ongoing market updates on Gulfstream, Bombardier Global Express and Boeing Business Jet (BBJ) and other large cabin private jet market updates and insights.
Avjet Adds New Gulfstream 450 to Charter Fleet
December 15, 2011
Avjet Corporation is proud to announce the addition of a brand new Gulfstream 450 to its Part 135 charter fleet. This outstanding aircraft was delivered in December 2011 from Gulfstream Aerospace Corporation, and offers the superlative amenities that discerning travelers have come to expect from Gulfstream and from Avjet.
Renowned around the globe for setting the highest standards of safety, comfort and efficiency, Avjet provides executive air charter and aircraft management services to the most discriminating travelers on six continents.
Avjet's exquisitely-configured fleet of large cabin jets includes:
Boeing Business Jets (BBJ)
Gulfstream 150
Gulfstream 200
Gulfstream 450
Gulfstream 550
Global Express
To learn more or to reserve one of these executive charter aircraft for your next flight, please contact Avjet's charter office at (800) 342-8538.
Good Third Quarter for Gulfstream
October 28, 2011
Reporting third-quarter earnings yesterday, General Dynamics chairman and CEO Jay Johnson noted that Gulfstream Aerospace experienced “continued emerging market customer interest and improved aircraft service volume” in the quarter. Gulfstream’s sales in the period were $1.4 billion, the result of an increase in the delivery of new "green" aircraft and completed aircraft. Increased market demand arising from buyers in China helped to build demand. Chinese and other emerging markets in Asia continue to represent good opportunities for owners looking to sell their aircraft. Avjet's leadership in the Asia-Pacific market means that those who list their aircraft with us can benefit from our knowledge of the market and our many well-established relationships in the aviation communities in those countries. Gulfstream also noted that it anticipates provisional certification of the G650 “in the next several weeks” and plans to deliver 10 to 12 green aircraft before year-end, with entry into service of outfitted G650s beginning in the second quarter. Avjet is uniquely positioned to provide expert guidance to clients interested in learning more about purchasing or leasing the G650, and we are already involved in helping many of our clients navigate that process. For more information on our Gulfstream aircraft sales and acquisition services, or our expertise in other large cabin jet aircraft, contact an Avjet representative at sales@avjet.com.
Positive Pre-Owned Jet Market Indicators
October 6, 2011
According to aviation data resource JETNET, the first eight months of 2011 are showing positive signs for pre-owned business jet sales. The year-to-date average asking price increased 3.5%. Inventories of pre-owned jets declined to 13.8% (down 1.1 points from 14.9% last year). Business jet transactions are up 11.4% from last year, with average asking prices up 3.5%. Average days on market are still at high levels. We have helped to lead this improvement in market conditions here at Avjet, as we continue to put together deals in large cabin aircraft including: Gulfstream, Global Express, Dassault Falcon, Bombardier Challenger and Boeing Business Jets. Our global reach, with emphasis on Asia Pacific markets, is helping our clients find qualified buyers for their aircraft. Please contact us with any questions about how we can serve your organization in either the sale or acquisition of a large cabin aircraft.
Gulfstream G150 Receives Type Certification in China
August 10, 2011
Gulfstream Aerospace Corp. recently announced that the company has received type certificate validation (TCV) for the G150 from the Civil Aviation Administration of China (CAAC).
This could potentially have a positive impact on global demand for the G150.
The certification "is reflective of the growing worldwide popularity of Gulfstream aircraft," said Larry Flynn, senior vice president, Marketing and Sales, Gulfstream. "It also demonstrates our commitment to ensuring Gulfstream ownership continues to be a smooth and simple process, regardless of where the aircraft is registered. Getting type certificate validation from China makes an already attractive aircraft even more so.
"The G150, thanks to its 3,000 nautical-mile range and high speed, provides exceptional capability and efficiency to Chinese operators and is backed by the same product support organization that services Gulfstream's long-range G550 and G450 aircraft.
According to Gulfstream, "the G150 can fly from Singapore to Beijing in 6 hours and 10 minutes, shaving up to 1 hour and 14 minutes off the flight time of other aircraft in its class. The aircraft can travel nonstop from Hong Kong to Mumbai at Mach 0.75, Hong Kong to Delhi at Mach 0.80 and Beijing to Delhi at Mach 0.80."
The mid-size jet also offers several options to improve safety, including an Enhanced Vision System (EVS) II, and a Wide Area Augmentation System-Localizer Performance with Vertical Guidance (WAAS-LPV).
The G150 has already achieved type certification from the Ukraine, Israel, the United States, Chile, the European Union, the Philippines, Canada and Brazil.
Avjet is a leader in pre-owned Gulfstream jet sales, acquisitions, charter and management, as well as assisting clients with the purchase of new aircraft positions of Gulfstream and other large cabin jets.
Our world-renowned charter fleet includes a beautifully appointed G150, available for your travel needs: http://www.avjet.com/aircraft/private-jet-charter/gulfstream-150
Some Positive Signs in the Pre-Owned Jet Market
August 3, 2011
In a recent information release, JETNET, a leading provider of aircraft sales data and trend analysis, reported some positive signs in the pre-owned jet market. "For the first 6 months of 2011 compared to the same period in 2010," the report said, "business jet inventory for sale decreased to 13.8% from 15.1%. The number of business jet transactions increased 15.3%, and business turboprops increased 3.7%." Avjet continues to be a leader in large cabin aircraft sales and acquisitions and is thus honored to have helped contribute to this improving trend through our extensive global network of aircraft buyers and sellers, and our research-driven market analysis. While the budget crisis in Washington creates new uncertainties, we will continue to provide wise guidance to our clients from our unique, global perspective.
New Gulfstream Orders Up
July 29, 2011
“Second-quarter Gulfstream orders were the largest we’ve seen since the economic downturn began,” Jay Johnson, chairman of Gulfstream Aerospace parent company General Dynamics, said in a recentn investor conference call. Gulfstream’s backlog climbed $428 million to $18 billion, representing an 18- to 24-month supply for in-production large-cabin jets. This includes orders for more than 200 G650s, with the aircraft said to be on track to receive certification later this year. Gulfstream sales are expected to be up 14 to 15 percent this year. While orders from North America doubled from the first quarter to the second quarter, international orders also saw dramatic increases. Gulfstream delivered 23 new jet aircraft in the second quarter: 20 large-cabin models and three midsize. The company expects to deliver 80 large-cabin jets–including 10 to 12 G650s–and 15 to 20 midsize aircraft this year. Avjet has assisted numerous clients recently with obtaining and planning for G650 positions. Avjet, offering years of Gulfstream sales, acquisition and management expertise, is uniquely equipped to assist buyers interested in learning more or securing a new Gulfstream position or pre-owned Gulfstream aicraft. Contact an Avjet representative at sales@avjet.com
Gulfstream 250 Renamed. Now Gulfstream 280
July 22, 2011
Gulfstream Aerospace Corp. recently announced that it is renaming its super midsized G250 aircraft. It will now be called the Gulfstream G280.
“Since introducing the Gulfstream G250 in 2008 and presenting it to customers around the world, we determined that G280 is a more amenable number sequence in certain cultures,” said Larry Flynn, senior vice president, Marketing and Sales, Gulfstream. “We value our international customers highly, and this change reflects our commitment to understanding the diverse cultures of our global business environment.”
The company said that this change will not affect any other in-production Gulfstream aircraft models.
Gulfstream introduced the G280 during the NBAA Conference and Exhibition in Orlando in 2008. It offers the largest cabin and the longest range at the fastest speed in its class.
It is capable of traveling 3,400 nautical miles at Mach 0.80 and has a maximum operating speed of Mach 0.85. With an initial cruise altitude of 41,000 feet, the G280 can climb to a maximum altitude of 45,000 feet.
Its 3,400-nautical-mile range means the G280 can fly nonstop from New York to London or from London to Dubai.
The G280 offers the largest cabin in its class, with up to 35 percent more floor area than other large-cabin, mid-range business jets. The additional space provides for a larger lavatory, an improved galley and increased storage.
The G280 flight-test program is well under way. The three aircraft in the test program have exceeded 1,400 flight hours over 525 flights. At the same time, manufacturing of the first non-test aircraft, S/N 2004, is complete, with production acceptance testing under way at Israel Aerospace Industries near Tel Aviv.
Avjet, offering years of Gulfstream sales and acquisition expertise, is uniquely equipped to assist buyers interested in learning more or securing a G280 position. Contact an Avjet representative at sales@avjet.com
JP Morgan Bizjet Market Update
May 25, 2011
JPMorgan's latest business jet market update reports “uneven progress” toward recovery, with "a meaningful disparity between new demand for large and small aircraft, with Gulfstream’s book-to-bill coming in just above 1.0x while Cessna reported net cancellations.”
According to the report, pre-owned turbine aircraft inventories declined by another 0.3 percent to 10.8 percent last month, setting a post-recession low, but prices have continued, on average, to decline.
Asking prices declined by 2 percent, according to the JPMorgan data. “The inventory trend is a leading indicator that has been pointing in the right direction for months,” JPMorgan aerospace analyst Joseph Nadol III said. “Pricing had only just begun to stabilize, and we view improvement here as a more near-term indicator of new jet demand.”
Meanwhile, the JPMorgan report indicates that China “was a key driver of order activity for Gulfstream in the first quarter, and Chinese demand is strongly contributing to the demand for the Bombardier Global family and the planned increase in production rates.”
Avjet has been an active participant in this emerging recovery in both the U.S. and Asian market, bringing numerous pre-owned Gulfstream, Boeing Business Jet (BBJ), Bombardier Global and other large cabin aircraft transactions to fruition.
Pre-Owned Jet Inventories Steadily Declining
May 11, 2011
According to UBS, pre-owned business jet inventories continued a gradual downward trend, declining by 1 percent last month and now 15 percent below the May 2009 peak. “We estimate available inventories represent 14 percent of the installed base of business jets,” UBS said, “lower from the 18 percent peak, but still above the historical average at 12 to 13 percent.” Inventories of young (less than 10 years old) jets declined by 2 percent and are now 24 percent below the 2009 peak. Average asking prices for the newer models UBS tracks declined for the fourth straight month, though. Meanwhile, business jet flight activity in March came in 4 percent higher from the prior year in March and is now 30 percent above the trough in early 2009, although still 16 percent below the peak in late 2007. (Source: Aviation International News)
G250 On Track for 2011 Certification
March 23, 2011
Gulfstream has announced that the second G250 flight-test aircraft, S/N 2002, completed a successful round of natural icing tests, bringing the super-midsize jet closer to its scheduled FAA and Israeli CAA certification later this year.
The G250 was flown from its home base in Tel Aviv, Israel, to Smyrna, Tenn., where it spent several weeks flying to the Great Lakes region seeking out natural icing conditions. According to Gulfstream, the G250 completed the test points required for certification, including allowing ice to build on the aircraft’s unprotected surfaces and then verifying its stability and control characteristics. Tests also included evaluating the ice-protection systems. Despite the demanding conditions and ice accumulation on untreated surfaces during one of the test flights, the G250 performed flawlessly.
The S/N 2003 aircraft has started function and reliability testing, one of the final phases required before certification can be granted.
The three flight-test aircraft have now logged a combined 955 hours over 324 flights.
With flight testing well under way, the first production aircraft, S/N 2004, is now under assembly.
If you and your organization would like information about the purchase or lease of a future G250 position, please contact an Avjet sales and acquisitions Gulfstream specialist at +1 (703) 661-4848 or sales@avjet.com
GAMA Report: Large Cabin Aircraft a Counterpoint to Slow 2010 Market
February 23, 2011
The General Aviation Manufacturers Association (GAMA) reported a total of 763 bizjet deliveries in 2010, a 12-percent decrease from 2009 and a drop of nearly 42 percent from the industry high of 1,313 set in 2008. 2010 thus represented the lowest number of turbine-powered aircraft deliveries since 2005. Despite the reduced numbers, industry billings increased by 1.2 percent, to $19.7 billion, based largely on the continuing strength of the large-cabin, long-range segment. 78 percent of U.S. business jet purchases in 2010 were cash transactions, as opposed to financed, up by 13 percent over the figure for 2009. Business is rebounding in the large cabin long-range market, partly because the regions of the world that are buying airplanes need the extended capabilities of these aircraft. This trend was evident in Avjet's large number of transactions of Gulfstream, Boeing Business Jet (BBJ) and other large cabin aircraft.
Gulfstream Market on Course to End 2010 Strongly
December 22, 2010
During 2010, at various points throughout the year one or more Gulfstream large cabin markets (GIV/IVSP, G450, GV and G550) were typically seeing robust activity at the expense of other markets. During the course of the year it was a very rare occurrence that all the large cabin models were seeing strong activity at the same time. Such is now the case in the 4th quarter as we end a strong year in the Gulfstream markets. All Gulfstream large cabin markets are seeing tight reductions in inventory and rising prices in December which bodes well for the start of 2011.
The tightest markets are the GV market with only three (3) aircraft for sale, the G450 market with only four (4) aircraft for sale and the G-IVSP market with six (6) aircraft for sale. In addition the G550 market, which has lagged somewhat over the past few months, has recently seen three (3) aircraft go under contract with a fourth expected soon. The G-IV market, although not quite as strong as the other markets mentioned here, has been the steady performer in 2010 with consistent trades each month and a recent 25% reduction in inventory. It seems that buyers in all price categories are finding Gulfstream aircraft as attractive values in the market place.
We are encouraged by the recent strong activity across the entire Gulfstream large cabin model range and are further optimistic by recent prices appreciation ranging from 3% to 5% on average for large cabin aircraft. Demand seems to be very steady as we close out 2010 and this along with tight inventories bodes well if demand continues or increases in the New Year. Avjet is the worldwide leader in Gulfstream sales and acquisitions. If you would like to review more in depth analysis of these markets or would like to receive our 2010 Year End Review please email us at sales@avjet.com.
