In this month’s Aircraft Comparative Analysis- information is provided on a selection of pre-owned business jets in the $2.0 - 4.7m price range for the purpose of valuing the pre-owned Hawker 800XP aircraft. 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 800XP is Bombardier’s Learjet 60.Back to Articles
Hawker Beechcraft 800XP
In this month’s Aircraft Comparative Analysis- information is provided on a selection of pre-owned business jets in the $2.0 - 4.7m price range for the purpose of valuing the pre-owned Hawker 800XP aircraft. 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 800XP is Bombardier’s Learjet 60.
The Hawker 800XP is a derivative from the design of the UK-built de Havilland/Hawker Siddeley and British Aerospace 125 that was first built in 1962. The Hawker 125 evolved into the Series 400 to 800- produced up to 1993 when Raytheon purchased the Series 800 program and the aircraft was renamed the Hawker 800.
The 800 series has a number of modifications and changes over the 700 series- including improved payload capabilities- updated systems- and enhanced performance from an improved wing (incorporating new outer wing sections). 292 Hawker 800 aircraft were built until final production in 1995 when the 800XP entered service. (The 800A (230 built) was specifically built for the US market and the 800B (62 built) for non-US markets.)
The Hawker 800XP features an uprated engine- enhanced aerodynamics- increased weight and system upgrades on preceding models. The Hawker 800XP was manufactured between 1995 and 2005- and the number of units built in that timeframe totaled 426 aircraft- with 422 still in service today. The Hawker 800XP features Honeywell TFE-731-5BR-1H engines with a thrust of 360 lbs. It is RVSM certified from the factory after serial number 258359- or when service bulletin SB-34-3110 (Honeywell) or SB-34-3166 (Collins) is complied with.
PAYLOAD AND RANGE
The data contained in Table A is published in the Business & Commercial Aviation’s May 2012 issue- and is also sourced from Conklin & de Decker. A potential operator should focus on payload capability as a key factor. The Hawker 800XP ‘Available Payload with Maximum Fuel’ at 1-750 pounds is greater by 682 pounds (64%) than that of the Learjet 60 at 1-068 pounds.
According to Conklin & de Decker- the cabin volume of the Hawker 800XP - 604 cubic feet - is more than that offered by the Learjet 60 (453 cubic feet) as shown in Chart A.
As noted above- the Hawker 800XP has two Honeywell TFE731-5BR engines each offering 4-660 pounds of thrust. The Learjet 60 has two Pratt & Whitney Canada PW305A engines with thrust at 4-600 pounds each. Table B- sourced from the Aircraft Cost Calculator (ACC) shows the fuel usage by each aircraft model in this field of study. The Hawker 800XP (300 gallons per hour - GPH) burns more fuel than the Learjet 60 (229 gallons per hour).
Using data published in the May 2012 B&CA Planning and Purchasing Handbook and the August 2011 B&CA Operations Planning Guide we will compare our aircraft. The nationwide average Jet A fuel cost used from the August 2011 edition was $6.04 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.)
COST PER MILE COMPARISONS
Chart B details ‘Cost per Mile’ and compares the Hawker 800XP to its competition factoring direct costs and with all aircraft flying a 1-000nm mission with an 800 pound (four passengers) payload. The Hawker 800XP has higher cost per mile at $5.17 per nautical mile- which is more expensive to operate by 20.5% than the Learjet 60 at $4.29 per nautical mile.
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 800XP at $2-137 per hour is more expensive to operate by 15.4% than the Learjet 60 at $1-852 per hour.
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.
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 800XP is competitive with the Learjet 60. The Hawker 800XP has a larger cabin- greater payload capability and offers greater range. However- the Hawker 800XP operates at a slower speed- costs considerably more to operate per mile and the variable cost as well as its fuel burn usage is greater than the Learjet 60.
Table C contains the retail prices from the latest Vref edition for each aircraft. The prices shown are for 2003- the last year of Learjet 60 manufacture. 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 800XP has the lower percentage of the in-operation fleet ‘For Sale’ at 11.4% (buyer’s market) compared to the Learjet 60 at 15.9%.
Over the past 12 months the Hawker 800XP is showing an average of ten sold per month. This sales activity highlights many opportunities for the savvy dealer/broker specializing in the Hawker 800XP.
The majority of the wholly-owned Hawker 800XP aircraft in operation (377) are located in North America (74.1%)- followed by Asia (9.3%) and Europe (8.5%) for a combined 91.9% of the wholly-owned fleet- see Chart E. There are 38 fractional and seven shared owners of the Hawker 800XP aircraft in operation in addition to these.
AVERAGE ASKING PRICES
Table D offers an eight-year summary to provide the historical perspective of the Hawker 800XP aircraft sales activity trends from June 2004 to May 2012. The table is divided between the four years prior to the economic melt-down (6/2004–5/2008) and the four years since (6/2008-5/2012).
The largest decline in the average asking prices occurred from 6/2008-5/2009 and 6/2009-5/2010- when the value dropped from $8.91m to $5.81m. At that time the average asking prices declined significantly by $3.1m and the average days on the market (DOM) nearly doubled. However- pre-owned sales increased to 90- reversing the trend of declining sales noted from the previous time periods from 81 (6/2007-5/2008) to just 64 (6/2008-5/2009).
Over the past 12 months the Hawker 800XP aircraft has shown the highest number of full retail sales transactions of ALL pre-owned business aircraft- primarily as a result of the large decrease in the average asking prices by $2.05 million to $3.76 million as reported by JETNET. However- the length of time that the Hawker 800XP remains on the market before a sale remains stubbornly high.
Clearly- the Hawker 800XP aircraft continues to be very popular within the pre-owned market today- but continues to face the new pre-owned market realities that have resulted in substantial asking price reductions and longer periods of time before selling.
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 800XP evidently fares well among its competition- so those operators in this market should find the preceding comparison of value. Our expectations are that the Hawker 800XP 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; Web: www.mdchase.com