Tracey Cheek posted an articleAircraftPost shares market performance comparison between Falcon 900 EASy and Gulfstream G450. see more
NAFA member, AircraftPost, shares market performance comparison between the Falcon 900 EASy and the Gulfstream G450.
AircraftPost has been generating and monitoring values for the Falcon 900 EASy and the Gulfstream G450 since entry into service in 2003. Both aircraft were built on a type certificate (TC) of earlier series aircraft originating in 1986. In total there have been 937 G4 series and 543 F900s built since origin, with the G450 ending production in 2017.
The aircraft are similar in that they both have 3-zone cabins, similar cruise speeds and range as well as the latest avionics technologies. The most distinguishing differentiator is that the Falcon 900s have a 3-engine design vs 2 on the G450. Over the course of production, the aircraft have had a consistent price point delta [new] of ~$1M.
So how have residual values performed over time? Using 2010-year models as a benchmark, this is what the market has revealed for these two competing models.
Over the last 12-months, there have been 28 G450 [pre-owned] transactions, representing 21% of the fleet, with an average market time of 221 days and selling prices ranging from 9M to $20.2M, with the 2010- models averaging 13.8M in resale value. Based on a 2009 (assuming 2010 EIS 2010) list price of $36.5M, the G450 has retained 38% of its original cost new over an 8-year period.
Falcon 900 EASy [pre-owned] transactions shows 10% of the fleet or 19 aircraft changing hands over the last 12-months. Average market time shows 419 DOM with selling prices ranging from 10.25 to $23M, yielding an average $16.7M. Once again, using a 2009 (EIS 2010) list price [new] of $38.1M and an average resale of $17.8M over the last 12-months, the Falcon 900 EASy shows a value retention of 47% over the last 8- years.