Asian Sky Quarterly 2022 Q3

PRE-OWNED MARKET SPOTLIGHT: G650 & G650ER
TRANSACTION HISTORY
No. of G650/G650ER Sold
18
16
14
12
No. of Aircraft Sold
10
8
6
4
2
0
Oct
2018
Apr
2019
Oct
2019
Apr
2020
Oct
2020
Apr
2021
Oct
2021
Apr
2022
Oct
2022
Data Source: Amstat
Aircraft usually depreciate over time and rarely see an increase in
their values. For example, a 2015-build G650 saw a drop in value of
51% by the end of 2020. Indeed, the G650 has been more sensitive
to the external environment, seeing a 29% decrease in values
between the first and the fourth quarter of 2020. This accelerated
Demand from first-time buyers is stronger than before, which
gives sellers in the secondary market more room to sell at a
higher price, resulting in an abnormal trend in historical prices.
The value of a 2015 G650 picked up by 27% from the third quarter
of 2021.
depreciation conflicts directly with the other aircraft in the Long
Range category, which was stable within the same period.
RETAIL PRICE HISTORY
Aircraft Value
Average Large Jet Value
70M
60M
Aircraft Value (US Dollars)
50M
40M
30M
20M
10M
2015Q1
2016Q1 2017Q1 2018Q1
2019Q1 2020Q1 2021Q1 2022Q1
Year / Quarter
2022Q3
Data Source: VREF
Several operators have already disclosed their G700 orders,
whilst the market for the G650/G650ER remains active. On
September 26, 2022, Gulfstream delivered the 500th aircraft of
the G650 family. Mark Burns, Gulfstream Aerospace President,
said at the time, "This milestone delivery is a strong testament to
continue to invest in the G650 and G650ER to ensure continuous
improvement throughout the growing fleet for our customers."
During its second-quarter investor call, the parent company
of Gulfstream-General Dynamics said the demand for a new
G650ER continues.
the tremendous work of our dedicated Gulfstream team. [...] We
THIRD QUARTER 2022 — GLOBAL SKY QUARTERLY | 49