Blog - Mesinger Jet Sales

The Reality of Aircraft Values

Historically our industry has watched business aircraft values fluctuate more like commodities than pieces of equipment.  Today, this is no longer the case.  Many owners, sellers and other industry participants still talk about aircraft values as though they might one day go back up, and many buyers often say that they are going to wait to buy because prices will continue to fall.  This is changing and more and more people are starting to realize that prices won’t go up and at some point buyers just need to step in.  Why have our markets changed?  What does it mean to buyers and sellers?  And, how do we deal with it?

Our industry has matured and we have more inventory than demand.  This is the result of:

  • A changing global economic environment,
  • Manufacturers producing more makes and models and more units of each than ever before over the previous decade*,
  • The ability to upgrade and improve aircraft extending their useful lives.

Prior to 2004 most business aircraft were sold in the United States.  Between roughly 2004 and 2010 that shifted and the majority of business aircraft, particularly new, were sold outside of the United States.  Manufacturers increased production to meet growing global demand and our industry thought the future was limitless as emerging markets grew rapidly.  Today, most countries’ economies are contracting and the vast majority of business aircraft, new and used, are again sold to buyers in the United States.

According to the multiple listing service AMSTAT there were 8,203 business jets in active service in the end of 1995, 13,946 in the end of 2005 and 21,311 in the end of 2015.  JetNet iQ reported a few weeks ago that they predict 744 new business jets will be delivered in 2016.  And, the general consensus in our industry is that 9,000+ business jets will be delivered between 2015 and 2025.  Honeywell’s 24th Annual Business Aviation Forecast published in November 2015 predicts up to 9,200 new business jets will be delivered by the end of 2025.  Even if manufacturers slow their production numbers significantly we are not retiring aircraft in any mass number at the end of their lifecycle to maintain equilibrium in the supply/demand balance.

At the same time, we do need a healthy manufacturing sector, refurbishment businesses and aircraft upgrade/modification businesses.  Aircraft and component manufacturers are innovating new technologies like vastly more efficient engines which will significantly lower the cost of operations for new aircraft as well as other major improvements.  It is this innovation that will promote new aircraft sales and we need new aircraft being delivered into the market at the start of their lifecycles to replace aging aircraft.  And, other companies are innovating new technologies to upgrade older aircraft as they move through their life cycles.  This provides owners opportunities to keep aircraft longer while still fulfilling their missions and meeting new mandates as well as for buyers entering the market to purchase pre-owned aircraft that are still viable with long useful lives.

Today, it is thought by many leading brokers, lenders and aviation attorneys that aircraft with average total time, maintenance programs, no major damage, average equipment and commonly desired interior configurations will reduce in value by roughly 8% to 10% annually.  Once an aircraft is over 10-year-old the reduction in value may slow down slightly.  Note that this annual depreciation is a percentage of the prior year’s value, not the original value.

Our industry has matured and our supply/demand balance has shifted.  As an industry we need to acknowledge a realistic and predictable annual residual loss rate.  Mission, functionality, reliability,  initial cost, and strength of the marketplace should be the driving factors for aircraft purchase and ownership decisions.  We need to start accepting this new reality to establish accurate expectations and make good informed decisions.

 

*Note that some manufacturers like Bombardier have recently reduced aircraft manufacturing plans to better align production with future demand.

2013 Gulfstream G280, S/N 2027, N1FC

We are proud to exclusively represent for immediate sale a 2013 model Gulfstream G280 S/N 2027, Registration Number N1FC.  This is an immediately available, 1 U.S. owner, gorgeous, highly equipped Gulfstream G280.  It is equipped with options such as HUD, EVS, WAAS/SBAS and LPV RNAV Approach Capability, RNP 0.3 Approach Capability, FANS 1/A, RNP 4, ADS-B Out, TCAS 7.1, Dual Electronic Charts & Overlays, XM Weather, a 3rd FMS and a 3rd VHF Com, Aircell GoGo Biz Inflight Internet and more.

The G280 is an incredible aircraft and Gulfstream has put a very strong foot forward against the other manufacturer’s super mid-size aircraft offerings.  The G280 was designed to fulfill any domestic mission as well as global travel.  It has a max range of 3,600 nautical miles and a max operating speed of mach 0.85.  Improvements over its predecessor the G200 include the PlaneView280 cockpit incorporating state-of-the-art flight and navigation systems; autothrottle and autobraking; “best-in-class fuel efficiency”; a light, quiet, and comfortable interior and so much more.

We have often written about aircraft pedigree.  Our client is a long-time Gulfstream operator.  Their flight department personnel have served on many Gulfstream development committees for different aircraft including the G280.  They operate a large private Part 91 Gulfstream fleet including G280s, G550s and G650s based in Houston, TX.   And, they have a truly first-class operation with a no expense spared attitude about doing whatever it takes to maintain and operate their aircraft to the highest possible standards.

If you are considering purchasing a Gulfstream G280 we strongly encourage you to pay close attention to this aircraft and this opportunity.  You will not find a better operator or a better seller to engage with.  Our client is selling this to more accurately align their fleet with their needs.  They understand the current competitive market and are prepared to sell for a price that makes this aircraft the best value in the pre-owned G280 market.  You can review detailed specs and see lots of photos about this Gulfstream on our website at http://jetsales.com/jets/2013-gulfstream-g280/.  Please call us today at +1-303-444-6766 or email us at sales@jetsales.com if you have any questions or want to discuss this further.  We look forward to speaking with you soon.

Gulfstream G550 S/N 5180 – A Great Aircraft & A Great Opportunity!!

We are proud to exclusively represent for immediate sale a 2008 model Gulfstream G550 S/N 5180, Registration Number N1FS.  This is an immediately available, 2 U.S. owner, gorgeous, highly equipped Gulfstream G550.  This aircraft has been used for travel worldwide and it has been upgraded to meet NEXTGEN requirements including Enhanced Cert Fox, FANS 1/A, CPDLC, ADS-B Out and TCAS 7.1.  It is also equipped with additional upgrades such as BBML high speed internet, WAAS-LPV and upgraded FMS software (NZ7.1.2).  The engines are enrolled on the Rolls-Royce Corporate Care engine program and the APU is enrolled on the MSP Gold program.  And, the aircraft was stripped and painted and new carpet was installed in 2015.

We have often written about aircraft pedigree.  The original owner of this aircraft had it managed by Solairus Aviation and it was operated both Part 91 and Part 135 on Solairus Aviation’s 135 certificate.  It is equipped with a 135 certified crew rest area.  Our client is a long-time Gulfstream operator.  Their flight department personnel have served on many Gulfstream development committees for different aircraft.  And, they operate a large private Part 91 Gulfstream fleet including G280s, G550s and G650s based in Houston, TX.  The flight department is based in a beautiful hangar at the Hobby airport and they have a truly first-class operation with a no expense spared attitude about doing whatever it takes to maintain and operate their aircraft to the highest possible standards.

If you are considering purchasing a Gulfstream G550 we strongly encourage you to pay close attention to this aircraft and this opportunity.  You will not find a better operator or a better seller to engage with.  Our client is selling this aircraft to more accurately align their fleet with their needs.  They understand the current competitive market and are prepared to sell for a price that makes this G550 one of the best values on the market.  You can review detailed specs, see lots of photos and watch a video about this Gulfstream on our website at http://jetsales.com/jets/2008-gulfstream-g550/.  Please call us today at +1-303-444-6766 or email us at sales@jetsales.com if you have any questions and to discuss this further.  We look forward to speaking with you soon.

2016 NBAA Leadership Conference: Engagement – Unlocking Untapped Potential – February 22nd to 24th in San Antonio, TX

Mesinger Jet Sales is proud to be a sponsor of the 2016 NBAA Leadership Conference and Josh Mesinger, Vice President of Mesinger Jet Sales and member of the NBAA Business Aviation Management Committee is one of two co-chairs of the event.

In today’s economy, the fast pace of change is creating a significant challenge for our industry, flight departments/operators and aircraft owners.  Aircraft operators, flight department personnel and aircraft owners must be ready to adapt quickly and intelligently to these changes. A key to success is how well all members of a company, an organization and/or a flight department, regardless of its size, are engaged. Engagement spans laterally and horizontally across organizational structures as well as with the surrounding industry. How effectively flight department leaders engage with their team, with their reporting executives and principles, and with the industry will have a significant impact on the success of the operation and the value it can add to its greater organization. This year’s leadership conference digs deep into the area of engagement and how to uncover untapped potential. The conference presents both thought leaders and practiced executives who will convey insights and inspire ideas on how best to engage within your company. We hope that you will attend and bring members of your team above and below you by title to the conference. The skills discussed and lessons learned at this conference are applicable and value adding to anyone at any level in any organization.

Make plans to attend the 2016 NBAA Leadership Conference, Feb. 22nd – 24th in San Antonio, TX. Experience two days of inspiring educational keynote presentations, as well as unparalleled networking opportunities with other business aviation professionals. Our company Mesinger Jet Sales is a sponsor of the event because we believe in the value it provides to our industry and we are excited about the content, sessions and speakers NBAA has planned to help attendees explore new ways to engage for success.  We encourage you to review the agenda, and register today: www.nbaa.org/leadership/2016_LE16A2XX.  

Boeing BBJ S/N 29024 (YG004), N50TC, an Executive VIP Aircraft That Was Designed For Comfort, Reliability and Convenience!

We are proud to represent Boeing BBJ S/N 29024 for immediate sale. This remarkable executive VIP aircraft was designed as thoughtfully as any aircraft could be. The director of maintenance who has extensive executive VIP aircraft experience has been with the aircraft since it was new and designed it for long term reliability and function. Some of the details that were implemented on S/N 29024 include a gravity based water system with capacity for 104 gallons of water. This simple system has proved to be very reliable while also taking up less space providing more storage room in the cargo hold. Another feature are water drip pans at each of the exits to prevent accumulation of water and the development of corrosion. Additionally, for ease of maintenance they had floor boards cut per STC at commonly accessed areas. This prevents the operator from needing large sections of the interior removed for some maintenance. Another unique stand out feature of this aircraft is the large in-flight accessible storage closet between the aft private bedroom suite and the adjacent conference room/bedroom. This is not a feature that is standard to all BBJs and it provides significant additional storage and a further sound barrier between sleeping quarters.

With a range of approximately 5,800 nautical miles with 8 passengers, this wide body executive class aircraft has the ability to complete long range trips with luxurious ease. It includes a 7 tank auxiliary fuel system. It also has a Hollingsead Cargo Fire Detection-Extinguishing system. The interior is configured with 12 taxi, take-off and landing certified passenger seats and convertible sleeping accommodations for up to 8 people. It is designed with a forward crew lavatory and rest area separated from the main cabin for privacy, a forward lounge including a combination of divans and single seats creating a very comfortable arrangement, a wet bar adjoining the large mid-cabin galley, a large mid-cabin lavatory and two private rooms as you move aft through the aircraft. The first private room is designed with two large divans that convert in to beds with an additional murphy style bed above the forward facing divan and the back cushion of the aft facing divan rises to create another bunk bed for a total sleeping capacity of 4 passengers. The owner also had this room designed for “his and her” sleeping with a privacy curtain that snaps in place dividing the room in half and there is a large conference table stored below the aft facing divan and can be easily deployed in flight. The room also includes a large LCD monitor.

The second private room in this aircraft is a full cabin-width stateroom with a large bed, an “occasional chair” by the window, cabin entertainment with a drop down monitor from the ceiling and a full cabin width master bathroom with a fully enclosed stand up shower.

The galley is fully equipped for fresh food preparation. The current owner almost always had fresh meals prepared in-flight as opposed to prepared catering. Galley equipment includes a stovetop, oven, microwave, refrigerator, cold storage and counter space as well as extensive additional storage.

Entertainment throughout the aircraft is provided by a comprehensive audio and video system with a DVD/CD player, several large LCD monitors and a video projection system in the forward lounge section. Voice communication is made possible through the Inmarsat SATCOM with five handsets located throughout the cabin.

This executive VIP configuration allows for unparalleled comfort and the interior cosmetics are in very good condition. The aircraft was last painted in 2007 and it shows very well inside and out. The interior was completed by Garrett/Jet Center and the empty weight is 95,112.7 pounds. The C-1 check was completed in April 2015 and the 12-year landing gear inspection was accomplished in 2012.

Please take a moment to watch a very comprehensive video for the aircraft here: https://vimeo.com/148242788

And for pictures and specifications you can see them here: http://jetsales.com/jets/1998-boeing-bbj/

Falcon 900EX, Serial Number 74, N740LM

We are proud to exclusively represent for immediate sale Falcon 900EX Serial Number 74, Registration Number N740LM.  This aircraft was originally delivered new in December 2000.  Today (December 2015) it has approximately 5,750 hours’ total time which is very low relative to the average for its vintage and it is in great condition.  The engines and APU are enrolled with 100% coverage on Jet Support Services Inc.  (JSSI) engine (Premium Plus) and APU maintenance programs.  This aircraft is equipped with upgrades such as Aircell ATG-5000 GoGo Biz Broadband Internet with Wi-Fi and TCAS 7.1.  The 2C-Check inspection, 144-month Landing Gear Restoration (overhaul) and Wing Tank Modification (F900EX-329 Dry Bay) were complied with in September 2012 meaning that whoever buys this aircraft will not have to perform another C-Check inspection for almost 3 years.  And the paint and interior look good.

Our client has an old established flight department that operates multiple aircraft with a no expense spared attitude towards ensuring that the aircraft is kept in the best possible mechanical condition.  They have their own beautiful hangar and a full-time director of maintenance.  Duncan Aviation in Lincoln, NE has performed most major inspections since our client purchased the aircraft in July 2008.

The Falcon 900EX is a true work-horse aircraft capable of comfortably and safely fulfilling long-range flight operations.  Dassault Falcon has been building the Falcon 900 series aircraft for almost 30 years making it one of the longest and most successful productions of a business jet airframe in the world and they are still producing it today with the current model, the Falcon 900LX.  Today, prices of Falcon 900EX aircraft are roughly 1/3 of what they were in 2008 prior to the global recession.  Any buyer considering a large-body long range aircraft in the +/- $10M range must look closely at the Falcon 900EX.  It provides a comfortable cabin, efficient operations and longer range than a Gulfstream GIV-SP all while being supported by Dassault Falcon’s global service and support network and many large independent service centers around the world.

If you are considering purchasing a Falcon 900EX you must seriously consider Serial Number 74.  You will not find a nicer aircraft with better pedigree or a deal as good as this one will be anywhere in the world.  The seller has their replacement aircraft in service and they are ready to pay close attention to any reasonable offer and get this sold.  You can find detailed specs, lots of photographs and a video about the aircraft on our website at http://jetsales.com/jets/2000-falcon-900ex/.  We look forward to speaking with you soon about this great aircraft and great deal!

Back to top