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Aircraft Comparative Analysis - Hawker Beechcraft 800

In this month’s Aircraft Comparative Analysis information is provided on a selection of pre-owned business jets in the $1.7–2.1m price range for the purpose of valuing the preowned Hawker 800. We’ll consider the productivity parameters - specifically payload and range- speed and cabin size – and consider current and future market values.

Mike Chase   |   1st July 2013
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Mike Chase Mike Chase

Mike Chase has thirty-five year's extensive global managerial experience in marketing,...
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In this month’s Aircraft Comparative Analysis information is provided on a selection of pre-owned business jets in the $1.7–2.1m price range for the purpose of valuing the preowned Hawker 800. We’ll consider the productivity parameters - specifically payload and range- speed and cabin size – and consider current and future market values.

The aircraft compared with the Hawker 800 are Bombardier’s Learjet 60 and IAI’s Astra SP.

BRIEF HISTORY
The Hawker 800 is a derivative from the design of the UK-built de Havilland/ Hawker Siddely and British Aerospace 125 that was first built in 1962. The Hawker 125 evolved into the Series 400 to 800 that were produced up to 1993 when Raytheon purchased the Series 800 program and renamed the aircraft the Hawker 800.

The Hawker 800 is basically a Hawker 700 model with a 54-inch longer wing- a more aerodynamic windshield- an enlarged fin- and a deeper aft fuselage to accommodate an additional 82 gallons of fuel in the ventral fuel tank. It exceeds the Hawker 700 model in speed- range and gross takeoff weight. This aircraft can be RVSM certified when service bulletin SB-34-3110 (Honeywell) or SB-34-3166 (Collins) is complied with.

A total of 292 Hawker 800 aircraft were built until final production in 1995- at which time the Hawker 800XP entered service. The Hawker 800A (230 units) was specifically built for the US market and the Hawker 800B (62 units) for non-US markets.

MARKET SHARE
Chart A represents the in-operation aircraft market share as of April 2013 for the Hawker 800 (A and B models) at 45%- Learjet 60 (50%)- and the Astra SP (5%). There are currently 630 total aircraft in operation for these three models.

Aircraft Comparative Analysis - Hawker Beechcraft 800 - Chart A July 13

 

PAYLOAD AND RANGE
The data contained in Table A is published in the B&CA May 2013 issue- and is also sourced from Conklin & de Decker. A potential operator should focus on payload capability as a key factor. The Hawker 800 ‘Available payload with Maximum Fuel’ at 1-520 pounds is greater by 452 pounds (42%) than that of the Learjet 60 at 1-068 pounds. However- both of these competitors offer less available payload than the Astra SP at 2-055 pounds.

Aircraft Comparative Analysis - Hawker Beechcraft 800 - Table A July 13

 

CABIN VOLUME
According to Conklin & de Decker- the cabin volume of the Hawker 800 at 604 cubic feet is more than those offered by the Learjet 60 (453 cubic feet) and the Astra SP (375 cubic feet)- as depicted in Chart B.

Aircraft Comparative Analysis - Hawker Beechcraft 800 - Chart B July 13

 

POWERPLANT DETAILS
The Hawker 800 has two Honeywell TFE731-5R engines each offering 4-300 pounds of thrust. The Learjet 60 has two Pratt & Whitney Canada PW305A engines with thrust at 4-600 pounds each. The Astra SP has two 3-700 lbst-rated Honeywell TFE731-3C engines.

Table B- sourced from the Aircraft Cost Calculator (ACC) shows the fuel usage for each aircraft model in this field of study. The Hawker 800 (234 gallons per hour) uses 35 gallons per hour (18%) more fuel than the Learjet 60 (199 gallons per hour) and slightly more than the Astra SP (225 GPH). 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.

Aircraft Comparative Analysis - Hawker Beechcraft 800 - Table B July 13

 

The nationwide 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.)

TOTAL VARIABLE COST COMPARISONS
‘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 Hawker 800 at $3-112 per hour is 15.3% more per hour than the Learjet 60 ($2-698) and 9.7% more than the Astra SP ($2-837) according to Conklin & de Decker.

Aircraft Comparative Analysis - Hawker Beechcraft 800 - Chart C July 13

 

PRODUCTIVITY COMPARISONS
The points in Chart D center on the same group of aircraft. Pricing used in the vertical axis is as published in 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.

Aircraft Comparative Analysis - Hawker Beechcraft 800 - Chart D July 13

 

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 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- Range- Speed and Cabin Size we can conclude that the Hawker 800 is competitive with the Learjet 60 and Astra SP. The Hawker 800 has a larger cabin- greater payload capability than the higher-priced Learjet 60- and offers greater VFR range. However- the Hawker 800 operates at a slower speed- costs more to operate on a variable cost basis- and its fuel usage is greater than the Learjet 60 and Astra SP aircraft.

It can- however- be purchased at a lower price-point than the Learjet 60. Table C contains the retail prices from the latest Vref edition for each aircraft. The prices shown are all for year 1995 production models. The number of aircraft in-operation- percentage ‘For Sale’ and the number ‘Sold’ over the past 12 months are from JETNET. As shown- the Hawker 800 has a higher percentage of the in-operation fleet ‘For Sale’ than the Learjet 60 (17.2% versus 12.1% - both buyer’s markets). The Astra SP has the highest in operation fleet percentage on the market at 20%.

Aircraft Comparative Analysis - Hawker Beechcraft 800 - Table C July 13

 

Over the past 12 months the Hawker 800 is showing an average of 4.5 sold per month. This sales activity highlights many opportunities for the savvy dealer/broker specializing in the Hawker 800.

BY CONTINENT
The majority of the wholly-owned Hawker 800A aircraft in operation (218) are today located in North America (89%). The Hawker 800B fleet majority is in Asia (55%)- Europe (23%) and South America (13%) for a combined 91% of the wholly-owned fleet (see Table D). There are eleven shared owners of the Hawker 800A aircraft in operation in addition to these- but no fractionally-owned aircraft in operation.

Aircraft Comparative Analysis - Hawker Beechcraft 800 - Table D July 13

 

SUMMARY
Within the preceding paragraphs we have touched upon several of the attributes that business aircraft operators value in a jet. There are of course other qualities such as airport performance- terminal area performance- and time to climb performance that might factor in a buying decision- however.

The Hawker 800 evidently fares well among its competition- so those operators in this market should find the preceding comparison of value. Our expectations are that both the Hawker 800A and 800B will continue to do well in the pre-owned market for the foreseeable future.

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

Read more about: Bombardier Learjet 60 | IAI Astra SP

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