According to a recent report by Business Jet Update Bank UBS, number of used aircraft Gulfstream G650 on secondary market in August fell by more than 25%. Reducing the number of for sale G650 comes against the backdrop of a stabilization of the total number of available business jets in the secondary market, the report said.
According to UBS the number of sold/G650 (G) 650ER fell from a peak of 18 aircraft prior to 13, which is equivalent to 7% of the fleet operated. Nevertheless, model prices continue to decline, dropping in August another percentage point, and now at 19% below the peak in August used G650 cost on average about $10 million less than the new G650.
The increase in the number of (G) 650 on the secondary market some time ago raised concern with analysts about the potential impact on sales of new aircraft But Phoebe novakovic, Chairman of the company General Dynamics (maternal for Gulfstream), questioned some reports on the number of used aircraft and urged investors not to panic in late July at a press-conference on the results of the first half of the year 2016, she said: “I’m comfortable because that secondary market G650 is appropriate and rational. The company has not noticed any cancellations on G650 due to the presence in the market for used aircraft.
With regard to the pricing policy of the company Hagerty Jet Group (HJG) in its latest report on the situation on the market speculated that the price reductions may provide an opportunity for the owners of G550 “elevate” your level. HJG experts noted that sellers G650 “struggling to understand this rapidly changing market,” adding that asking prices still seemed at the end of June at 5-10% above fair value.
At the same time UBS in the latest report notes that in August the relative quantity of young (10 years or less) Gulfstream jets for sale, is 8% (models are in production), which is one of the lowest rates in the industry. And the lowest level of “fresh” aircraft in the secondary market, according to UBS, revealed a Cessna Citation-7%.
Industry in General in the aftermarket business jets in August sold about 11.2 per cent of the fleet that operated below an average of 13%. Stocks of aircraft age five or younger rose by 1% to 7%, while the number of aircraft at the age of six to 10 years of age fell by 2% to 10% of the total fleet. However, the number of business jets 6-10 years remained almost on the level of historical highs.
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Russia, St-Petersburg, Efimova 3.
US, New York, Plattsburgh.