private jets

Aviatrade Asia and its parent company, Aviatrade Inc, have been advising clients worldwide for the acquisition and operation of private and business jets since 1988 (Aviatrade Asia since 2005). We are constantly tracking sale and "asking price" trends so that our clients can benefit from the latest and most accurate transaction figures and most attractive market offerings. Equally important are our services for clients who wish to acquire new aircraft from the manufacturers and require guidance on pricing and negotiation. Aviatrade Asia's status in the private jet industry also ensures that our clients are offered aircraft that are not available to the general public (off-market).     private jets for sale
The news of significant price declines across all sectors of the pre-owned business aircraft market will come as no surprise to followers of the world economic situation although the downturn in this cycle has far exceeded the decline experienced during any prior economic recession in the last twenty years. Sales of private and business jets have seen price drops of up to fifty percent since October 2007 (considered to have been the peak of the previous market high). These market conditions have provided unique opportunities to buy "almost new' aircraft at a fraction of the new or pre-owned prices that existed some eighteen months ago. Some new aircraft "positions" (future deliveries) have also seen major price reductions when offered by sellers who have opted to sell prior to taking delivery.

However, during the past three months, as glimmers of economic hope have appeared around the world, certain sectors have experienced a 'bottoming' or leveling of prices and in some cases a slight reversal of prices. These pricing movements are at present very limited and tend to be focused on the long-range segment of the market. That said, the weak US dollar is still providing very attractive opportunities for non-US buyers in the high-end/long range category.

Aviatrade Asia offers the following as a snapshot of the trends in pricing and availability amongst the more popular models currently being considered by Asian buyers;
 
 
These charts indicate the "trend" in pricing between 1994 and November 2009. As is apparent, the small and mid-size jets are still struggling to recover (good for buyers) and the large (long-range) jets have stabilized and seen some slight price recovery, but not increase. (buyers should consider an acquisition before prices rise too far). 

Challenger 300's have a spacious cabin with very good transcontinental range of a little over 3000nm. The number for sale has increased considerably from fifteen or so to just under forty. Therefore, obviously the prices have dropped and a late model (2008) example can be acquired for around $16-17MM as opposed to the $22-23MM mark. Challenger 605's, with longer range (3800nm) have experienced similar drops with late-model prices now below $20MM, a drop of 35% over the past twelve months. Aviatrade Asia can offer two Global Express XRS's (ultra-long-range) available for delivery; February 2010 at $46MM and July 2010 at $48.5MM.

Late model Hawkers, 2008 850XP for example, are selling below $10MM and are well-supported in China for operations and maintenance. Even the 850XP 2009 models and the latest 900XP have not escaped price reductions although the 900XP is selling well with 137 examples in service.

In the Falconjet family, the best deals are in the Falcon 2000EX model. This jet has essentially the same floorplan as the three-engine F900 line-up  (Aviatrade Asia's opinion is that three-engines are not necessarily safer than two) and very good intercontinental performance of almost 4000nm. Prices for late models (2008) are in the mid-$20MM's but there are only a total of twelve 2000EX's available.

By far the best values at present (as far as Asian buyers are concerned) are to be found amongst the Gulfstreams. G200's have slipped in price by 40% since October '08 with 2007/8 models at circa $13MM. Part of the reason for this dramatic drop is that Gulfstream will introduce the newer-version/upgraded G250 next year. The G450 (long range) and G550 (ultra-long-range) are two of the segments that have recently seen a reversal of fortune with prices still way down from their highs, but now firming and beginning to climb back up. G450's in the high $20MM to low $30MM's (down from low $40MM's) and G550's (2008/09 models) in the high$30MM-low $40MM's for almost new examples (down from mid $55MM's). Aviatrade Asia can offer a fourth quarter 2010 G550 delivery that can still be acquired for circa $46MM.
 

These two charts confirm the general trend in inventory over the past two years. Obviously, as inventory drops, aircraft prices in most sectors will stabilize or rise as available aircraft decrease to normal inventory levels. When inventory drops below normal inventory levels (5-7% of any given make/model), the prices will most certainly rise for the late-model-year aircraft.

These examples by no means cover the entire spectrum of available opportunities but we can certainly provide more detailed analysis and recommendations to interested parties. It is also worth noting that, although we are aware that the Asian preference is for aircraft 'as new as possible', Aviatrade has supervised and delivered many refurbished and customized aircraft to prominent business leaders and wealthy individuals around the world. Pricing amongst well-maintained and low-time less-new aircraft offers even better leverage and represents an extremely good entry point for a first-time buyer. The customization process allows buyers to thoroughly re-design and update any given aircraft so that it looks like new.

We hope that this information has been helpful to Global Flying's readers and we look forward to providing updates for you on a regular basis.

private jets