Gulfstream G550 Market Defies Large Cabin Slow Down

October 9, 2012, Michael Arnone

Over the past six months, nearly all large cabin VIP markets have seen the same increases in supply and falling prices.

The prevailing theme for 2012 has been double digit increases in inventory among Bombardier’s Global Express/XRS, Boeing’s Business Jet, Gulfstream’s GV and G450, and Dassault’s 7X. Collectively, inventory in these markets is up anywhere from 14% for the Global Express to over 200% in the XRS market.

Prices are down roughly 16% collectively for the entire large cabin segment. One market has stood out during this slowdown: the Gulfstream G550 market where at present only four or five aircraft are available for sale representing a 64% drop in inventory.

At the start of 2012, many aviation analysts predicted a slew of G550s would be available due to pending deliveries of Gulfstream’ s G650 but this never occurred. Although not immune to the price declines in other large cabin markets, the G550 has reached a value price point that is hard for buyers to ignore in view of the $65.0MUSD price tag for a G650 assuming you can even get one.

At a price range of $30.0MUSD to $50.0MUSD for the G550 you get the latest and greatest large cabin Gulfstream (until the G650 delivers officially) at a substantially reduced price compared to just a year ago. Clearly the G550 is garnering the lion’s share of large cabin buyers at the moment.

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