The G150 first came to reality in 2002 when its Original Equipment Manufacturer (OEM) Gulfstream partnered with Israel Aircraft Industries to introduce this private aircraft. The certification process took longer than expected and the aircraft was first produced in 2006.
Gulfstream is still producing this mid-size aircraft and over the past ten years has produced 122 aircraft. The active fleet is made up of 114 aircraft.
The aircraft is powered by two Honeywell TFE-731-40AR-200G turbofan engines, which together can produce 4,420 lbs of thrust at takeoff and come equipped with Full Authority Digital Engine Control (FADEC). Honeywell offers its standard MSP and MSP Gold programs for these engines, as they have 6,000 intervals before overhauls. These engines provide the G150 with the ability to have greater range at faster speeds than its competitors in the category.
The aircraft comes standard with the Rockwell Collins Pro Line 21 cockpit, which boasts upgraded Flight Information systems, Weather Radars, and Electronic charts. Numerous options can be added to this cockpit, including: Fingertip Flight Control, improved Enhanced Vision System (EVS), and Autothrottles.
With its powerful turbo fan engines, the aircraft can go 3,000 nm with four passengers, and its advanced avionics suite provides a pilot’s dream. These two features represent why this aircraft is one of the premier options in the mid-size category.
The Gulfstream G150 has not been immune to the struggles of the rest of the mid-size category. This is largely due to the rapid decline in the large cabin / super mid-size aircraft. These struggles can also be attributed to an oversupply of new aircraft being produced by the OEM. This leads to a decreased price that Gulfstream is willing to take for trade-in aircrafts, which in turn leads to downward pressure on the pre-owned aircraft that enter the market.
There are currently 13 G150’s available on the market, which equates to 11.4% of the fleet being for sale. This number has increased by 46% since Q1 of this year. When we see an increase in supply we tend to also see a decrease in pricing levels. The price range for the available aircraft is between $4,175,000 and $7,995,000.
In 2014 and 2015 we saw 11 and 13 transactions, respectively. This market has had a slow start in 2016, and this can mainly be attributed to the points mentioned in the first paragraph of this section. When it comes to drivers on price for this aircraft, it is similar to other aircraft in the category. The biggest drivers are total airframe time, engine programs, maintenance status and avionics upgrades such as Wifi, TCAS II, and ADS-B Out.
Notable Recent Transactions
Below are two of the recent transactions. Because there have been only three transactions this year to date, we are also going to use aircraft on the market with what we know to be the take prices for those aircraft.
Vref Trends for the Aircraft
Above is the comparison for the Gulfstream G150, comparing the retail values from Q2 of 2015 and 2016. This graph shows the drop we have seen over the past year in retail values for this aircraft. At the top end in the 2015 models we have seen a drop of over $2 million, and at the low end that number is still around $5ooK. As I mentioned above, this can be accredited to an oversupply of this aircraft, as well as several economic factors affecting sales for the new G150, including the recession that most emerging markets are experiencing, as well as the competition in the mid-size to super-mid-size market where you can get competitive aircraft for a lower price. The three data points represented show an interesting trend in this market. From the 2012 and 2008 trades that represent 2/3 of the retail sales this year, the average percentage of retail for these aircraft is 92%. Interestingly, the black data point represents an aircraft that is currently available on the market and should set a new trend for what Owners should expect to see out of their transactions. This 2006 model, which is well equipped and enrolled on engine programs, has Wifi, and is also enrolled in Gulfstream ProParts, is expecting to see a retail number that is 82% of full retail. What this data point does is puts pressure on the rest of the market to react and sets new expectations for owners.
Like we have been seeing with most of the mid-size to super mid-size aircraft, this market represents a buyers’ market, and can potentially offer unprecedented value for an aircraft owner / operator looking to move into a newer mid-size aircraft with outstanding capabilities. On the sell side, the keys will be being realistic on pricing, recognizing the trend that we continue to see, expecting the reality that if the aircraft is not priced correctly they will most likely chase this market down, and expecting what the market bears later rather than sooner.
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