Over the following paragraphs we’ll consider key productivity parameters for the Cessna Citation CJ4 Gen2 and the Embraer Phenom 300E, including payload, range, speed, and cabin size, to establish which aircraft provides the best value in the Light Jets market.
Does a higher purchase price with lower operating (per mile) costs drive a purchase decision? It is hoped that the following jet comparison will help clarify.
Cessna Citation CJ4 Gen2
As Cessna’s largest and most capable CitationJet model, the Cessna Citation CJ4, offered a longer cabin and range compared to other Citation Jet models. It also differed from the previous models through its moderately swept wing design, which it borrowed from the larger Citation Sovereign.
The first flight of the Citation CJ4 took place on May 5, 2008 with deliveries beginning in 2010. It is powered by two Williams International FJ44-4A engines each offering 3,621lbst, and proved popular with new and pre-owned aircraft buyers alike.
The Citation CJ4 Gen2 was introduced in 2021, and began deliveries a few months later. The CJ4 Gen2 is equipped with enhanced features, including new folding airstairs with a lower step to the ground, step lighting, and handrail; added seating options; new ambient lighting; skylights in the lavatory; and a galley with improved storage.
As of this writing, there were 20 Cessna Citation CJ4 Gen2 business jets in operation worldwide (all wholly-owned), with 17 (85%) units based in the US.
Embraer Phenom 300E
Introducing a new interior design and avionics, the Embraer Phenom 300E represented a significant upgrade over the original Phenom 300 when it entered the market in 2018. Powered by a pair of Pratt & Whitney Canada PW535-E1 turbofan engines, each producing 3,478lbst, the Phenom 300E is equipped with a Prodigy Touch Flight Deck with Garmin 3000 avionics.
As of this writing, 148 Phenom 300E business jets had been delivered worldwide, though 100 (68% of the fleet) were based in the United States. Breaking the fleet down, there were 135 wholly-owned aircraft, nine fractionally-owned, and four more in shared ownership.
Payload & Range Comparison
When comparing business jets, an important area for potential owners and operators to focus on is the payload capability, and especially the ‘Available Payload with Maximum Fuel’. Table A shows the Phenom 300E has a greater ‘Available Payload with Maximum Fuel’, at 1,586lbs. By comparison, the Cessna Citation CJ4 Gen2 offers 1,122lbs.
Table A - Citation CJ4 Gen2 vs Embraer Phenom 300E Payload Comparison
Cabin Cross-Section Comparison
Chart A depicts the cabin cross-sections side-by-side and shows the Phenom 300E offers greater cabin height (4.9ft vs 4.75ft) and width (5.1ft vs 4.83ft) than the Citation CJ4 Gen2. However, the net cabin lengths of both business jets are almost the same - with the Citation CJ4 Gen2 offering 17.3ft, compared to the Phenom 300E’s 17.2ft.
The greater cabin width and height for the Phenom 300E provides more overall cabin volume (324cu.ft. vs 293cu.ft.), factoring the net main seating area, but excluding the lavatory. Configured with executive seating, the Citation CJ4 Gen offers seating for up to nine passengers with two crew. The Phenom 300E accommodates seven seats with two crew.
The Phenom 300E provides more internal (10cu.ft.) and external luggage volume (74cu.ft) compared to the Citation CJ4 Gen2 (7cu.ft. internal and 71cu.ft. external).
Chart A - Cessna Citation CJ4 Gen2 vs Embraer Phenom 300E Cabin Comparison
Range Comparison
Using Wichita, Kansas as the start point, Chart B shows the Embraer Phenom 300E has a range of 2,010nm with four passengers and available fuel – which is 83nm more than the Cessna Citation CJ4 Gen2 at 1,927nm.
Note: For business jets, ‘Four Pax Range’ represents the maximum IFR range of the aircraft at long range cruise. The NBAA IFR fuel reserve calculation is for a 100nm FAR Part 23 or 200nm FAR Part 25 alternates. This range does not include winds aloft or any other weather-related obstacles.
Chart B - Citation CJ4 Gen2 vs Phenom 300E Range Comparison
Powerplant Details
The Cessna Citation CJ4 Gen2 has two Williams International FJ44-4 engines producing 3,621lbst each. These burn 172 gallons of fuel per hour. The Embraer Phenom 300E has two Pratt & Whitney PW535-E1 engines, providing 3,478lbst each, burning 169gal/hr of fuel.
Cost per Mile Comparison
Chart C details the ‘Cost per Mile’, comparing the Citation CJ4 Gen2 and Phenom 300E, and factoring direct costs with both aircraft flying a 1,000nm mission with an 800lbs (four passengers) payload.
The Phenom 300E has a higher cost per mile at $3.92 per nautical mile, which is 7.1% more per mile than the Citation CJ4 Gen2 ($3.66 per nautical mile).
Chart C - Citation CJ4 Gen2 vs Phenom 300E Cost Per Mile Comparison
Variable Cost Comparison
The ‘Variable Costs’, illustrated in Chart D, are defined as the estimated cost of fuel, maintenance labor, scheduled parts, and miscellaneous trip expenses (e.g., hangar, crew and catering). These costs DO NOT represent a direct source into every flight department and their trip support expenses.
For comparative purposes, the costs presented are the relative differences, not the actual differences, since these may vary from one flight department to another.
The Cessna Citation CJ4 Gen2 ($1,153/hr.) has a lower variable cost than the Embraer Phenom 300E ($1,192/hr.) – a difference of $39 (3.3%) per hour.
Chart D - Citation CJ4 Gen2 vs Phenom 300E Variable Cost Comparison
Market Comparison Table
Table B (left) contains the new prices (per B&CA) for a 2021-model Cessna Citation CJ4 Gen2 and Embraer Phenom 300E ($10.750m and $9.650m, respectively – a difference of $1.1m). Also, listed are the long-range cruise speed and range numbers (per B&CA), while the number of aircraft in operation, the percentage for sale, and average sold are from JETNET.
There were two Citation CJ4 Gen2 jets ‘for sale’ on the pre-owned market at the time of writing, representing 10% of the fleet, according to JETNET. Just one of the 148 Phenom 300E fleet was available “for sale”. Meanwhile, the average number of new and used transactions per month over the previous 12 months averaged two, for the Citation CJ4 Gen2, and five for the Phenom 300E.
Table B - Citation CJ4 Gen2 vs Phenom 300E Market Comparison
Maximum Scheduled Maintenance Equity
Chart E and Chart F display the Cessna Citation CJ4 Gen2 and Embraer Phenom 300E, respectively. They depict (and project) the Maximum Maintenance Equity each jet has available, based on its age.
• The Maximum Maintenance Equity figure was achieved the day an aircraft came off the production line (since it had not accumulated any utilization toward any maintenance events).
• The percent of the Maximum Maintenance Equity that an average aircraft will have available, based on its age, assumes:
- Average annual utilization of 311 flight hours (in the case of the CJ4 Gen2), and 230 flight hours (in the case of the Phenom 300E); and
- All maintenance is completed when due.
Citation CJ4 Gen2 (Chart E) & Embraer Phenom 300E (Chart F) Average Maximum Maintenance Equity
Depreciation Schedule
Aircraft that are owned and operated by businesses are often depreciable for income tax purposes under the Modified Accelerated Cost Recovery System (MACRS). Under MACRS, taxpayers can use accelerated depreciation of assets by taking a greater percentage of the deductions during the first few years of the applicable recovery period.
In certain cases, aircraft may not qualify under the MACRS system and must be depreciated under the less favourable Alternative Depreciation System (ADS), based on a straight-line method meaning that equal deductions are taken during each year of the applicable recovery period. In most cases, recovery periods under ADS are longer than recovery periods available under MACRS.
There is a variety of factors that taxpayers must consider in determining if an aircraft may be depreciated, and, if so, the correct depreciation method and recovery period that should be utilized. For example, aircraft used in charter service (i.e. Part 135) are normally depreciated under MACRS over a seven-year recovery period, or under ADS using a twelve-year recovery period.
Aircraft used for qualified business purposes, such as Part 91 business use flights, are generally depreciated under MACRS over a period of five years or by using ADS with a seven-year recovery period. There are certain uses of the aircraft, such as non-business flights, that may have an impact on the allowable depreciation deduction available in any given year.
The US enacted the 2017 Tax Cuts & Jobs Act into law on December 22, 2017. Under the Act, taxpayers may be able to deduct up to 100% of the cost of a new or pre-owned aircraft purchased and placed in service before January 1, 2023.
This 100% expensing provision is a huge bonus for aircraft owners and operators. After December 31, 2022 the Act decreases the percentage available each year by 20% to depreciate qualified business jets until December 31, 2026.
Table C depicts an example of using the MACRS schedule for a 2021- model Citation CJ4 Gen2 in private (Part 91) and charter (Part 135) operations over five- and seven-year periods. The price is as published by B&CA at the time of writing.
Table D depicts an example of using the MACRS schedule for a 2021-edition Phenom 300E in private (Part 91) and charter (Part 135) operations over five- and seven-year periods. The price is per B&CA at the time of writing.
Citation CJ4 Gen2 (Chart E) & Embraer Phenom 300E (Chart F) Private (Part 91)
Asking Prices & Quantity
As mentioned, as of this writing, there were two pre-owned Cessna Citation CJ4 Gen2 business jets on the market, both with sales pending. The one Embraer Phenom 300E on the used market also had a sale pending.
While each aircraft serial number is unique, the Airframe Total Time (AFTT) and age/condition will cause great variation in the price of a specific aircraft – even between two aircraft from the same year of manufacture. The final negotiated price remains to be decided between the seller and buyer before the sale of an aircraft is completed.
Productivity Comparison
The points in Chart G are centered on the same aircraft. Pricing used in the horizontal axis is as published in B&CA. The productivity index requires further discussion since the factors used can be somewhat arbitrary. Productivity can be defined (and it is here) as the multiple of three factors:
1. Four Passenger Range (nm) with available fuel
2. The long-range cruise speed flown to achieve that range
3. The cabin volume available for passengers and amenities
Chart-G Cessna Citation CJ4 Gen2 vs Embraer Phenom 300E Productivity Comparison
Others may choose different parameters, but serious business aircraft buyers are usually impressed with price, range, speed, and cabin size.
The Embraer Phenom 300E offers a higher speed, larger cabin volume, greater ‘Available Payload with Maximum Fuel’, and marginally longer range than the Citation CJ4 Gen2.
The Cessna Citation CJ4 Gen2 cost just over $1m to buy new (in 2021) but offered lower operating costs than the Phenom 300E (3.3% lower hourly variable operating cost, and 7.1% lower cost per mile). It remains to be seen how the impact of depreciation will play out with the Citation CJ4 Gen2 as it matures and a pre-owned market is firmly established.
Prospective buyers of one of these Light Jets would need to weigh the capabilities of each jet very carefully against their specific mission need to determine which one is the best fit for their flight operations.
Within these paragraphs we have touched upon several of the attributes that business jet operators value, although there are other qualities, such as airport performance, terminal area performance and time-to-climb that might factor in a buying decision.
Ultimately, there is plenty for a prospective buyer to consider when deciding which performance criteria is better suited to them in an aircraft. Both business jets offer great value in the market today.
