Biz Jets for Sale

Selling Biz Jets

Head of Sales, Marketing & Contracts for the Airbus commercial aircraft business. When you need a business jet with a large cabin and can afford one, this is the year you should buy it.

Business jets with a large cabin: Now' s the goddamn good buyin' season.

When you need a large cabined commercial airliner and can buy one, this is the year you should buy it. New and used corporate jets are always priced low, interest has never been as cheap as it is today and there is a wide choice. On the basis of my own experiences, according to broker information I have talked to, the Level III wholesale cabins segment is already beginning to grow, deliveries of better performing airplanes are declining, and the price of heavy irons could rise by a healthy 10-15% by next year.

However, today I have seen how a GIV sells for as little as $14 million and a GIVSP sells for as little as $17-18 million. The latest GV to be stationed here in VNY (Van Nuys CA) - a 1500 hour aircraft - was something of an emergency sale and was selling at a cost that would not have been heard a year ago.

I recently thought of an early GV series number, possessed by a Borneo northern Borneo sidekick for an offer of only $24.5 million. I had a boyfriend who was interested in purchasing this aircraft, even though it would have taken about $3.5 million in interiors, which would have actually made it $28-30 million - very near what other GMs were trading for.

New and used planes are all cheaper this year. 15-20% of all manufactured aircrafts are for sale on some aircrafts. As a result, prices are put under considerable strain and the selling cycle is considerably prolonged. When most of your surgeries are done domestically and you don't care too much about sound, Stage II wide-body planes can be a great purchase these days. However, if you're not too busy with sound, you'll want to consider a new level of wide-body planes.

So if you are looking for a new plane and can take advantage of the 40% faster amortization in the first year that President Bush recently introduced, there are great offers for new large commercial jets. From a historical point of view, the salvage value of many company jets remains 85-90%, even if the plane could have been 10-12 years old.

However, as the uptime of most model aircrafts has increased significantly, there has been downside pricing pressures on new and used aircrafts. Today the producers are more than satisfied with it. When you come with money and a genuine buying wish, there is a great amount of pricing versatility.

In those days, for 3-4 years price levels were repressed before recovering strongly. Now, we were already in our latest Down Markt 2.5-3. In the last downswing, many sold planes were in the possession of stockbrokers. You got into difficulties and had to begin disposing of planes. The majority of planes for sale today are in the ownership of those who seem willing to do what is necessary to safeguard their investment.

It is my forecast that the present buyer's mark- up, especially for high-quality wide-bodied jets, will not last long. Whilst corporate jets makers seem to have all unmolded planes on their batches, and many will be happy to battle you to get you a plane to yours, the predicament won't last forever.

Once the markets recover, you can be sure that the discount that takes place today will stop. Also, the price of new planes will probably not be lower than at the peak of the recent up-market. Indeed, price levels may even be slightly higher because producers have become less efficient as a result of recent cuts in output.

So if you can affordable it, it makes good to go out today and buy the corporate jet you need. In recent months I have felt the beginning of a small increase in the level III premium large cabinet jet rent. Pre-existing GV delivery has shrunk from 12-14 sold planes to only 6-8 planes available at the end of March.

What is going on today is that many medium-sized jets are taking the chance to switch to large-capacity jets. Given the shrinking offer and falling price for large jets, medium and then smaller jets will also become more expensive. In the coming month I expect higher fares, especially for some of the world' most famous large cabins such as the Bombardier Challenger 604 and Global Express, Dassault Falcon 2000 and 900EX and Gulfstream IV/IVSP/VSP.

Those planes that are still superior in pricing are older Stage II helicopters that do not have upgraded flight decks. There are concerns among many airport managers that EU aerodromes, many of which already limit Level II aeroplanes, will not be able to release Level III devices fitted with hushkitsutomatically. Whilst I don't like to see the sector it's in at the moment, with the exception of shoppers injured by declining value for commercial jets, I think part of the answer is to get as many new guys into Corporate aviation as possible and keep the reselling markets on the move as well as possible.

When you are considering purchasing your first corporate plane, or when you have just come out of a fraction of the property and find that you can take significantly more flight hour, this is a very good moment to look for turbine-powered craft. So if you run a medium sized craft and want to sell up to a large cab interior you will probably make a good bargain.

Whilst you could take a $2.5 million drop in comparison to the price 2 years ago - by buying your Raytheon Hawker 800, you could be saving $5-6 million by buying a Gulf Stream. Ideally, you should be able to buy your old planes at or above the actual value and then buy your new planes below the actual value.

Purchase any good used airplane, give it a new color, do some electronics upgrade and interiors, and you'll be far ahead of where you would have been 1 or 2 years ago. Because there have been no drastic changes in the look or feel of the airplane since the 1960' s, your upgraded older airplane will look and function exactly like a new one.

There are some thresholds in the used cabins sector in relation to the low prices. Today, for about the same 3 million dollars that a used Bombardier Learjet 55 or a new TBM700 would take you, you can get into quite a friendly GII. Yearly interest savings of $1.35 million (at 3% per year) compared to the $45 million higher BBJ or Airbus A319CJ covers $500,000 in annually scheduled service and inspection and all operational expenses at approximately $3500 per hour for approximately 243 hours per year.

Although these larger airplanes are not so simple to handle, I have made the impression that they are not particularly difficult to service and use. Every corporate jet these airplanes are really good these parts of the world. All you have to do is choose which plane you want and which one best suits your needs. The Dassault Falcon 2000 and 900EX in the large cubicle stadium are great performers with beautiful cubicles and a much smaller floor space than the alternative models.

It feels more like being in a comfortably spacious room than in a trunk pipe and these planes have the benefit of taking full benefit of the operational expertise of Bombardier's local jets. When your organization is doing well, but you want to grow and deploy your employees across the nation, there's never been a better opportunity to be in the jet engine corporate jet airliner industry.

When you buy a large cab plane in today's markets, you could be a million dollar ahead of either a year ago or a year from now. e-mail or call one of our aviation specialists.

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