In this month’s Aircraft Comparative Analysis- we provide information on a selection of pre-owned business jets in the $11.5-16m price range for the purpose of valuing the pre-owned Gulfstream G200. We’ll consider the usual productivity parameters (payload- range- speed and cabin size)- and cover current and future market values.Back to Articles
In this month’s Aircraft Comparative Analysis- we provide information on a selection of pre-owned business jets in the $11.5-16m price range for the purpose of valuing the pre-owned Gulfstream G200. We’ll consider the usual productivity parameters (payload- range- speed and cabin size)- and cover current and future market values.
The field in this study also includes Bombardier’s Challenger 300 and Dassault’s Falcon 2000. For the purpose of this comparison- prices are based on 2011 models for the G200 and Challenger 300- while the Falcon 2000 is based on the 2006 model.
The Galaxy 1126 first flew on Christmas day 1997 and is a super-midsize- medium-range twin-turbofan corporate jet. By December 1998 it had received certification from the US and the Israeli aviation authorities. Deliveries began in 1999.
Powered by a pair of 5-700 lbst Pratt & Whitney Canada PW306 powerplants- this Galaxy model was designed with a new- wider fuselage with seating configurations for 8 to 10 passengers and a stand-up cabin. Attached to the fuselage were strengthened Astra SPX wings with integrated winglets that imposed a limit on maximum size- but allowed for the larger fuselage.
On May 1- 2001 General Dynamics (GD) announced the acquisition of Galaxy Aerospace Company from Israel Aerospace Company Ltd. (IAI) which included the type certificates for the entire family of aircraft. When the deal closed- GD placed the entire family of aircraft with Gulfstream- which it had acquired in 1999. General Dynamics chose to rename the Astra and Galaxy models the Gulfstream G100 and G200 respectively. Under the arrangement- IAI would continue to manufacturer the G100 and G200 aircraft in Israel and fly the aircraft for interior completion to Gulfstream in the US.
The final production G200 rolled off the production line on December 19- 2011 and a total 250 units have been built over the years. In 2005- Gulfstream began designing a follow-on aircraft. The new model- known as the G250 was launched in 2008. It was later renamed the Gulfstream G280 and began delivery in 2012.
Chart A represents the in-operation aircraft market share as of April 2013 for the Gulfstream G200 (28%)- the Challenger 300 (45%)- and the Falcon 2000 (27%). There are currently 867 total aircraft in operation for these three models.
PAYLOAD AND RANGE
The data contained in Table A is published in B&CA (May 2013 issue) and is also sourced from Conklin & de Decker. As mentioned in previous articles- a key area for a potential operator to focus on is payload capability. The Gulfstream G200 ‘Available Payload with Maximum Fuel’ at 650 pounds is significantly less than the competitors in this field of study.
According to Conklin & de Decker- the cabin volume of the Gulfstream G200 (868 cubic feet) is marginally larger than the Challenger 300 (860 cubic feet)- see Chart B. Both of these aircraft offer less cabin volume than the Dassault Falcon 2000 at 1-024 cubic feet.
The Gulfstream G200 aircraft has two PW306A engines each offering 6-040 pounds of thrust. Meanwhile- the Challenger 300 utilizes a pair of Honeywell HTF7000 engines offering more thrust at 6-826 pounds each. The Dassault Falcon 2000 has two CFE 738-1-1B engines with less thrust at 5-918 than either of the other two models. Using data published in the May 2013 B&CA Planning and Purchasing Handbook and the August 2012 B&CA Operations Planning Guide we will compare our aircraft. The nationwide average Jet-A fuel cost in 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. Table B- sourced from the Aircraft Cost Calculator- shows the fuel usage of each aircraft in our field of study. The Gulfstream G200 - at 235 gallons per hour (GPH) has a lower fuel usage in this field of study.
COST PER MILE COMPARISONS
Chart C details ‘Cost per Mile’ and compares the Gulfstream G200 to its competition- factoring direct costs and with all aircraft flying a 1-000nm mission with an 800 pound (four passengers) payload. The Gulfstream G200 cost per mile at $4.91 isonly slightly more per mile compared to the Challenger 300 ($4.87). The Dassault Falcon 2000 cost per mile is significantly higher at $6.58 per nautical mile.
TOTAL VARIABLE COST COMPARISONS
The ‘Total Variable Cost’ illustrated in Chart D is defined as the cost of Fuel Expense- Maintenance Labor Expense- Scheduled Parts Expense- and Miscellaneous Trip Expense. The total variable cost for operating the Gulfstream G200 at $2-056 per hour is less than the Challenger 300 at $2-206 and the Falcon 2000 at $2-819.
The points in Chart E center on the same group of aircraft. Pricing used in the vertical axis is as published in the B&CA 2013 Purchase Planning Handbook and Vref. The productivity index requires further discussion in that the factors used can be somewhat arbitrary.
Productivity can be defined (and it is here) 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. The examples plotted are confined to the aircraft in this study. A computed curve fit on this plot would not be very tight- but when all business jets 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.
Also included in Chart E is the Gulfstream G280 business jet which has replaced the G200 as Gulfstream latest super mid-cabin aircraft. After consideration of the Price- Range- Speed and Cabin Size- we can conclude that while the Gulfstream G200 model has a slightly larger cabin volume- the Challenger 300 shows a slightly better productivity value. However- beyond the parameters set within Chart E- the G200 has a lower operating cost than its competition- and a 2011 model can be purchased for less than a 2011 model Challenger 300.
Table C contains the relative retail prices from Vref for each aircraft. The number of aircraft in-operation- percentage “ForSale” and the number “Sold” over the past 12 months are from JETNET. As shown- the Gulfstream G200 has 11.8% of the fleet on the market (buyer’s market) with a monthly average of 3.4 aircraft sold currently.
LOCATION BY CONTINENT
The majority of the Gulfstream G200 fleet is based in the United States (62%)- followed by Asia (16%) and Europe (14%) – see Table D.
This information is compiled by JETNET STAR reporting system. The data can be valuable information for dealer/broker repeat business where the majority of Gulfstream G200 aircraft are located by continent.
Within the preceding paragraphs we have touched upon several of the attributes that business aircraft operators value. There are other qualities such as airport performance- terminal area performance- and time to climb performance that might factor in a buying decision- too- however.
The Gulfstream G200 aircraft holds its own among its competition- so those operators in the market should find the preceding comparison of value. Our expectations are that the Gulfstream G200 aircraft will continue to do very well in the pre-owned market.
For more information: Michael Chase is president of Chase & Associates- and can be contacted at: 1628 Snowmass Place- Lewisville- TX 75077; Tel: 214-226-9882; Email: Mike@avbuyer.com- Web: www.mdchase.com
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