In this month’s Aircraft Comparative Analysis- we’ll provide information on pre-owned ultra-long-range- large cabin business jets in the $48mplus- range for the purpose of valuing the Bombardier Global 5000 aircraft. Just how important is having the largest cabin aircraft in the ultra-long-range jet market? This is one question that we’ll seek to answer.Back to Articles
In this month’s Aircraft Comparative Analysis- we’ll provide information on pre-owned ultra-long-range- large cabin business jets in the $48mplus- range for the purpose of valuing the Bombardier Global 5000 for sale. Just how important is having the largest cabin aircraft in the ultra-long-range jet market? This is one question that we’ll seek to answer.
The current New/Used percentage split for the Global 5000 is 56% ‘New’ and 44% ‘Pre-Owned’ according to JETNET’s records. There are currently 116 Global 5000 aircraft in operation around the world with 115 being wholly-owned. The one remaining aircraft is in a shared ownership arrangement. There are no fractionally owned Global 5000 aircraft in operation.
We’ll consider the usual productivity parameters - payload/range- speed and cabin size - and cover current and future market values- comparing Bombardier’s Global 5000 and the Gulfstream G550 aircraft. Both of these aircraft models began delivering in 2003.
The Global 5000 traces its roots to the Global Express which was the second ultra-long-range large-cabin business jet produced and started delivering to customers in 1997. The aircraft made its maiden flight in March 2003 with FAA and JAA type certification awarded in October 2004. Three new aircraft follow the Global 5000. They are the Global 6000- Global 7000 and Global 8000 ultra-long-range business jets.
The ultra-long-range business jet market began in 1995 with the Gulfstream GV followed two years later by the Global Express. Today the ultra-long-range business jet market has exceeded 1-100 aircraft in operation.
Table A represents the Ultra-Long- Range Aircraft Delivery market-share percentage. Currently Gulfstream (at 556 units) has a 49% share of the market- making it the market-share leader versus Bombardier’s 37% share (424 units) and Dassault Falcon’s 13% share. A combined total of 1-131 Ultra- Long-Range aircraft are currently in operation.
PAYLOAD AND RANGE
The data contained in Table B is published in the Business & Commercial Aviation (B&CA) May 2012 issue- and is also sourced from Conklin & de Decker. As we mentioned in past articles- a potential operator should focus on payload capability as a key factor. The G550’s ‘Available payload with Maximum Fuel’ at 2-500 lbs is more than twice that of the Global 5000 (1-120 lbs).
However- according to Conklin & de Decker- the cabin volume of the G550 at 1-669 cubic feet is less than that of the Global 5000 (2-022 cubic feet) as represented in Chart A.
The Global 5000 is powered by two Rolls- Royce BR710-A2-20 engines- each offering 14-750 pounds of thrust. The Gulfstream G550 is also powered by Rolls-Royce – this time a pair of BR710-C4-11 engines- each offering 15-385 pounds of thrust. Table C- sourced from the Aircraft Cost Calculator (ACC) shows the fuel usage by each aircraft model in this field of study. The Global 5000 (558 gallons per hour - GPH) uses 28 gallons per hour or 5.3% more fuel than the Gulfstream G550 (530 GPH).
COST PER MILE COMPARISONS
Using data published in the May 2012 B&CA Planning and Purchasing Handbook and the August 2012 B&CA Operations Planning Guide we will compare our aircraft. The nation-wide average Jet A fuel cost used from the August 2012 edition was $6.30 per gallon at press time- so for the sake of comparison we’ll chart the numbers as published.
Note: Fuel price used from this source does not represent an average price for the year.
Chart B details ‘Cost per Mile’- and compares the Global 5000 to the G550 factoring direct costs- and with each aircraft flying a 1-000nm mission with a1-600 pound (eight passengers) payload. The G550 at $6.59 cost per mile is lower by 16.2% compared to the Global 5000 ($7.86 cost per mile).
TOTAL VARIABLE COST COMPARISONS
The ‘Total Variable Cost’- illustrated in Chart C- is defined as the cost of Fuel Expense- Maintenance Labor Expense- Scheduled Parts Expense and Miscellaneous Trip Expense. The total variable cost for the G550 at ($2-985) is lower by 15.8% compared to the Global 5000 ($3-545).
The points in Chart D center on the same aircraft. Pricing used in the vertical axis is as published in the B&CA August 2011 Operations Planning Guide. The productivity index requires further discussion in that the factors used can be somewhat arbitrary. Productivity can be (and it is here) defined as the multiple of three factors:
1. Range with full payload and available fuel;
2. The long range cruise speed flown to achieve that range;
3. The cabin volume available for passengers and amenities.
The result is a very large number so for the purpose of charting- each result is divided by one billion. Added to this chart to illustrate the overall standing of the Global family of aircraft are the Global 6000 and Global Express XRS along with the G500- helping add some context for the G550 and Global 5000. A computed curve fit on this plot would not be very tight- but when all business jet aircraft are considered- the “r” squared factor would equal a number above 0.9. Others may choose different parameters- but serious business aircraft buyers are usually impressed with Price- Range- Speed and Cabin Size. After consideration of the Price and Cabin Size- we can conclude that the Global 5000- as shown in our productivity index- is relatively competitive with the Gulfstream G550 business jet.
Table D contains the average equipped prices from Vref for each aircraft. The average speed- cabin volume and maximum payload values are from Conklin and de Decker. The number of aircraft in-operation and percentage ‘For Sale’ are as reported by JETNET. It’s interesting to note that both the Global 5000 (at 9.7% for sale) and the G550 (at 3.1% for sale) represent a sellers’ market (below the traditional 10% ‘For Sale’ mark).
LOCATION BY CONTINENT
Of the 115 wholly-owned Global 5000 aircraft in operation by continent- North America has the largest percentage at 41%- followed by Europe at 32%- and Asia at 23% for a combined total of 96% (Chart E).
Within the preceding paragraphs we have touched upon several of the attributes that business aircraft operators value. There are other qualities such as terminal area performance- time to climb performance- and maximum transition altitude levels that might factor in a buying decision- however.
Essentially- the Global 5000 fares reasonably well among its competition- depending on what aspects of its performance are important to your mission requirements- so those operators in the market should find the preceding comparison of value. Our expectations are that the Global 5000 jet for sale will continue to do very well in the new and pre-owned market moving forward.
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