Asian Sky Quarterly Q1 2016

AIRCRAFT SPOTLIGHT
PRE-OWNED GULFSTREAM G550 FOR SALE
INVENTORY VALUE (USD)
$8,093 M
$5,222 M
TOTAL BUSINESS
JETS MARKET
(26 MODELS)
$1,174 M
$1,078 M
$923 M
GULFSTREAM
G550
$928 M
$676 M
MARKET TREND
POSSIBLE
DECLINE
SIGNAL
LINE
TREND
LINE
BUYER’S
MARKET
RECOVERY
SIGNAL
AIRCRAFT SOLD
Mar
2014
Apr
May Jun Jul Aug Sep Oct Nov Dec Jan
2015
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2016
Feb
The market inventory for pre-owned Gulfstream G550s is indicative of
the overall market inventory for pre-owned business jets when comparing
the last 24-month period up to February 2016. Within that period,
the total value of G550s for sale rose by 59% to $1,078 million, broadly
in line with a 55% increase to $8,093 million in the total market inventory
value for the popular models covered in this report. It is worth noting
that the G550 inventory was initially a lot faster in its rise, probably due
to the arrival of the G650. However, since the summer of 2014, the G550
inventory for sale has remained roughly at the same levels, unlike the
slower but steady rise of the entire market covered in this report.
The demand for the G550 is increasing as witnessed by its improved
sales figures in the trailing twelve months to ebruary 0, moving
to a twelve month average of 2.9 monthly sales – a strong increase on
the 12 months previous to this period, which were 1.9 monthly sales,
indicating that there is some renewed demand in the market.
The renewed G550 demand relative to offers has gradually brought the
market trend line up to leave the ‘buyer’s market’ territory and to indicate
a current market balance in G550 offer and demand. However, the weak
first months of 0 have reversed this trend which now appears to
be headed back down towards ‘buyer’s market’ territory. Nonetheless,
this early-year modest performance is normal and we expect the G550
market to resume its trend towards a balanced or even a ‘seller’s market’
through 2016.
38 | ASIAN SKY QUARTERLY — FIRST QUARTER 2016