Asian Sky Quarterly 2023 Q1

EUROPE PROFILE: BUSINESS JET
Textron Aviation emerged as the most popular major OEM in the
European business aviation market, with its Light and Very Light
jet type series such as the Citation 525A (CJ2) and the Citation
525 (CJ1) leading the way. These aircraft models have a prominent
presence in the market thanks to their optimal range for flying within
the continent, comparatively lower operating and maintenance costs
than other jets in the same category, desirable fuel efficiency relative
to their performance, and their ability to approach shorter runways
at smaller airports across the region. The OEM also contributed the
highest volume of Medium jets in the region with 138 jets during the
latest quarter.
Light jets have become increasingly popular among business jet
travellers in Europe due to their performance capabilities most
suited to operating intracontinental routes and constitute 32% of the
fleet in the region. Popular Light-sized models in the region include
the CJ2 and CJ3, the Phenom 300, and the Pilatus PC-24.
Bombardier and Dassault were the major manufacturers that
contributed the most volume of Long Range, and Large aircraft to
the European market. The most popular Long Range model was the
Global 6000, with 104 jets in operation, which saw a transaction
during the current quarter when an aircraft was transferred from the
United States to Luxaviation in San Marino. Following closely was
the Falcon 7X, with 84 registered in operation, while the Falcon 8X,
the extended-range variant, had a fleet of 41 jets. The Long Range
category represented the second largest market share in Europe.
The Falcon 2000EX, an extended-range variant of the Falcon
2000, was the most popular Large jet in Europe and had 77 jets in
operation. This model was only produced between 2003 and 2004,
and the recent average asking prices ranged between USD $8 and
$11 million according to Controller. During this quarter, an aircraft
from NetJets Europe in Portugal was sold to the United States.
The Challenger 300 and the updated 350 series were the most
popular Medium jets in Europe, with a collective fleet of 86 jets
registered during the latest quarter. Despite residual values
plateauing after a noticeable rise in the previous year according to
VREF, the Challenger 300’s asking price ranged from USD $10 million
to $16 million, depending on the model year, while the newer 350
(model years 2016 to 2020) commanded asking prices of between
USD $13.5 and $26.7 million according to Controller.
Embraer was the fourth largest OEM in Europe with a total market
share of 10%, primarily producing Light and Large jets in the region.
The Phenom 300 was its leading model in Europe, with a fleet of
66 jets in operation during Q1 2023, representing 14% of the global
fleet of 487 jets. The updated variant of the model, the Phenom
300E, registered 34 units in operation in the latest quarter and could
present an attractive opportunity for buyers given recent asking
prices for the Phenom 300 (averaging USD $8.51 million), which had
come close to the average of USD $9 million being asked for the
newer 300E. With significant revisions to its cabin design aimed at
enhancing comfort, the 300E could attract buyers initially interested
in the older Phenom 300 or even the Pilatus PC-24.
Gulfstream, the fifth largest OEM, had 27% of all Long Range jets in
Europe. The G550 was the most prevalent, with 54 jets in operation,
followed by the G650 (36 jets), the G650ER (23 jets), and the GV /
GV-SP (21 jets).
Corporate Airliners had the smallest market share in the region,
largely due to their large footprint and reliance on larger airports. The
ACJ319 was the most popular Corporate Airliner in the region, with
24 jets registered during the latest quarter.
10 | GLOBAL SKY QUARTERLY — FIRST QUARTER 2023