- News
- Apr 26, 2024
- 3 min read
Pre-Owned Business Jet Market to Feel G700 Effect
Aircraft inventories are expected to rise as customers sell their jets to transition to the G700.
The pre-owned business jet market will soften as Gulfstream G700 deliveries begin and customers sell their aircraft after transitioning to the newly certified model. This is according to Hagerty Jet Group, an aviation brokerage specializing in Gulfstream aircraft.
The company noted that although the market had been awaiting Gulfstream certification for more than a year, it would still feel the impact of such a large number of aircraft coming up for sale as a result of G700 deliveries. Hagerty Jet noted that among the Gulfstream product line, the pre-owned G500, G600 and G650/650ER models are the most affected. The company also expects Gulfstream to end G650ER production as the G700 enters service and anticipates that the final G650s will be delivered in mid-2025.
More than 40 completed G700 aircraft are ready for delivery to customers, but the brokerage said deliveries would be constrained by the capacity to train crews and obtain foreign certifications. G700 crews must undergo training at FlightSafety International, which offers initial ground training but cannot issue type ratings until the aircraft/training program is certified. EASA certification is still under review and is likely several months away.
According to Hagerty Jet, the supply of pre-owned Gulfstream aircraft was at a historically high level in the first quarter. It also explained that the number of pre-owned Gulfstream transactions fell by 56% from the previous quarter, with 37 transactions involving the 10 Gulfstream models tracked by Hagerty Jet, compared with 85 in the fourth quarter. According to the company, annual depreciation for in-production Gulfstream aircraft ranged from 8% to 16%.
The pre-owned business jet market will soften as Gulfstream G700 deliveries begin and customers sell their aircraft after transitioning to the newly certified model. This is according to Hagerty Jet Group, an aviation brokerage specializing in Gulfstream aircraft.
The company noted that although the market had been awaiting Gulfstream certification for more than a year, it would still feel the impact of such a large number of aircraft coming up for sale as a result of G700 deliveries. Hagerty Jet noted that among the Gulfstream product line, the pre-owned G500, G600 and G650/650ER models are the most affected. The company also expects Gulfstream to end G650ER production as the G700 enters service and anticipates that the final G650s will be delivered in mid-2025.
More than 40 completed G700 aircraft are ready for delivery to customers, but the brokerage said deliveries would be constrained by the capacity to train crews and obtain foreign certifications. G700 crews must undergo training at FlightSafety International, which offers initial ground training but cannot issue type ratings until the aircraft/training program is certified. EASA certification is still under review and is likely several months away.
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According to Hagerty Jet, the supply of pre-owned Gulfstream aircraft was at a historically high level in the first quarter. It also explained that the number of pre-owned Gulfstream transactions fell by 56% from the previous quarter, with 37 transactions involving the 10 Gulfstream models tracked by Hagerty Jet, compared with 85 in the fourth quarter. According to the company, annual depreciation for in-production Gulfstream aircraft ranged from 8% to 16%.
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