In the dynamic world of business aviation, the arrival of new aircraft models often triggers shifts in the preowned market landscape. The introduction of Gulfstream’s latest flagship, the G700, is no exception and is expected to influence the availability and pricing of second-hand jets, according to industry experts.
Chad Trautvetter, a News Editor at AIN, highlighted in his article dated April 7, 2024, that the market for preowned business jets is likely to soften with the commencement of G700 deliveries. Owners upgrading to this newly certified model are expected to trade-in their existing aircraft, thereby increasing the inventory of available used jets. This trend was specifically noted by Hagerty Jet Group, an aircraft brokerage firm specializing in Gulfstream aircraft, which pointed out that the entry of the G700 is keenly anticipated and could disrupt market dynamics, irrespective of the brand.
The models expected to be most immediately impacted include the Gulfstream G500, G600, and G650/650ER, with the G650ER possibly nearing the end of its production cycle. Hagerty Jet Group predicts that the last G650s may be delivered by mid-2025 as the newer G700 takes precedence, heralding significant changes in the lineup offered by Gulfstream Aerospace.
The brokerage firm also noted that while over 40 G700s are ready to be delivered to customers, these handovers are expected to be staggered. Factors such as the availability of crew training and obtaining foreign certifications are likely to influence the pace of deliveries. FlightSafety International, for instance, is already offering initial ground training for G700 crews but is unable to issue type ratings pending certification of the aircraft and training programs.
Furthermore, the supply of pre-owned Gulfstream jets was described as being “at or near historic high levels” in the first quarter, with transactions down 56 percent quarter-over-quarter. Such market movements underscore the significant influence of new model introductions on aircraft valuations and availability, reflecting a volatile but fascinating sector of the aviation industry. For those interested in the deeper implications of these shifts, the full article by Trautvetter on AIN provides extensive insights.