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The Top 10 Business Jets

by Lydia Wiff 15. January 2017 08:00
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It’s hard to believe that just over 100 years ago, flying was just a pipe dream.  We’ve come a long way and now aviation has a part to play in many industries and has become its own segment of the aerospace industry.  “Business aviation” refers to any aircraft that are used in furtherance of a business.  According to the National Business Aviation Association, business aviation contributes approximately $150 billion to economic output and employs at least 1.2 million people (NBAA.org).  While only about 3% of the 15,000 registered business aircraft are flown by Fortune 500 companies, the rest belong to varying sizes of for-profit and not-for-profit companies all over the United States – this includes universities, local and federal government, and other businesses. 

Arguably, the future of aviation is business aviation and Globalair.com has their top ten picks for business aircraft backed up by several years of experience in aircraft sales. 

#10: Gulfstream 550 (G550)

If there is one company that evokes luxury in their aircraft, Gulfstream Aerospace has to be it.  The sleek frame of the G550 cuts through the air at 0.80 Mach using two Rolls-Royce BR710 engines with a max cruising altitude at 51,000 feet.  This luxury jet can be configured up to 19 passengers and sleeps 8 comfortably.  If you’re looking to escape the cares of everyday life easily, or reach your international group in England, the G550 has a range of almost 7,000 nautical miles (nm).

While it boasts a comfortable ride for passengers (a cabin over 40 feet long), pilots aren’t soon forgotten with the state of the art PlaneView™ flight deck featuring some of the most advanced avionics known in existence.  The flight deck features four liquid crystal displays for your flight crew with easy software upgrades making it compatible to your flight department, no matter how big or small.  Additionally, a Head-Up Display (HUD) is included in the G550 that projects flight data in the pilot’s forward-looking field of vision.  In times of reduced or obscured vision, such as inclement weather, the Enhanced Vision System (EVS) uses infrared technology to capture what the pilot cannot see – runway markings, taxiways, and other terrain are now visible in poor weather conditions.

According to the NBAA, the G550 has the reliability of 99.9% -- this means out of five years of service, you will only miss one trip (Gulfstream.com).  In a world where time equals money, this is a statistic to get behind.

#9: Gulfstream 200 (G200)

The little brother to the G550, the G200 had its first flight on Christmas Day in 1997 and was later released in 1999.  While Gulfstream no longer produces the G200, it doesn’t keep it from being a popular used aircraft.  It was originally named the “Astra Galaxy”.

Like most Gulfstream aircraft, the G200 boasts a large cabin size that can hold to 18 passengers, but typically configured for 8-10 passengers.  Unlike the Rolls-Royce engines, the G200 runs on two Pratt & Whitney Canada PW306A turbofans producing a maximum cruise spend at 0.80 Mach, similar to the G550.  While it has approximately the same cruising speed, the G200 has almost half the range at 3,400 nm at 45,000 feet which makes it a perfect aircraft for domestic flights here in the U.S.

From this description, the G200 can be seen not only as a predecessor to the G550, but the smaller, less expensive version of the G550.  The G200 is an excellent aircraft for a business that does mostly domestic flights.

#8: Hawker 4000

Taking a break from the Gulfstream family, the Hawker 4000 hails from Beechcraft which is owned by Textron Aviation – the parent company to Cessna and others.  Produced from 2011 to 2013, the Hawker 4000 was quickly realized as the top jet product by Beechcraft.

A worthy competitor to the G200 as well as slightly newer, it can seat up to ten people (14 maximum) and has average of 6 feet of standing room in the interior cabin.  It cruises at 45,000 feet with a range of 3,445 nm and 870 km/hr.  A common identifier of the Hawker 4000 is the hawk profile painted in tan on the tail section.

If you’re currently in the G200 as an airframe, a newer and comparable version would be the Hawker 4000.

#7: Hawker 800XPi

A predecessor to the Hawker 400 is the Hawker 800 which was first produced in the early 1980s.  A later version of the Hawker 800 was the XP and XPi which was most notable by the addition of winglets.

Like the previously mentioned aircraft, the 800XPi is similar in size when it comes to passenger capacity and length.  The maximum speed in cruise is 745 km/hr while its range is the shortest out of the group at just under 2,000 nm and has a service ceiling at 41,000 feet.  However, it’s rate of climb is nothing to sneeze at – 1,948.8 feet/minute!

#6: Citation Sovereign

We now switch gears back to the Textron company to that of Cessna and the Citation Sovereign.  This particular aircraft is classified as a mid-size business jet and at the time of its introduction in 2004, the third largest in the Citation line (weight-wise).

A unique feature of the Sovereign is its ability to take off and land in short distances which is unusual in a business jet.  For corporations and private companies, this becomes a valuable feature for plants and factories situated in small towns with short runways.  Not only does the Sovereign get you there fast (848 km/hour), but it also is considered a transcontinental aircraft with a range of over 3,000 nm.

#5: Falcon 2000

In our plethora of business aircraft manufacturers, we come to Falcon (birds of prey do make good names).  Dassault Aviation is a French aircraft manufacturer that can be seen as a fairly healthy competitor to Textron’s companies as well as Gulfstream.  Probably the most notable of the Falcon line are the aircraft that have three engines, however, the 2000 is the one of the older models in the line with just two engines.

Like other aircraft in its class, the 2000 has comparable speed as well as range which is 3,000 nm.  The impressive thing about the 2000 is its ability to climb to 37,000 feet in just nineteen minutes – that’s just over 1,900 feet/minute!

#4: Challenger 605

We’ve finally come to our last brand name in jets (although not our last pick) which is that of Challenger.  It’s one of the few non-American manufactures and actually is produced by Canadair which you might recognize as the manufacturer of the Canadair Regional Jet (CRJ).  Coincidentally, Canadair is an independent company that is also a division of Bombardier Aerospace – famous for its Bombardier Business Jets, or BBJs, among others.

The Challenger 605 is the fourth aircraft in the 600 series which dates back to the late 1970s.  The 605 was introduced in 2006 as an upgrade to the 604.  Some new features included larger cabin windows, updated Rockwell Collins instrumentation and the capability of holding an “electronic flight bag”.   The most distinct visual feature is the rounded tailcone.

The 605 is comparable in size to the previously discussed aircraft, but is one of the fastest at 870 km/hour and a range close to 4,000 nm.

#3: Challenger 300

The Challenger 300, at first glance, can easily be confused with the Challenger 600 series which is not the case.  Unlike the 600 series, the 300 is recognized as a Bombardier (parent company of Canadair). 

It entered commercial service in early 2004 and is considered a super-mid-size jet.  This basically means it’s very comparable to all the other aircraft discussed, but has greater range capability.   The 300 has a range of approximately 5,700 km and caps out at 45,000 feet.  

#2: Gulfstream IV-SP (GIV-SP)

We’re back in the Gulfstream family (popular for a very good reason)! The GIV-SP is very comparable to other Gulfstream products, but represents the fine-tuning that the Savannah-based company did to improve their product line.

For instance, Honeywell advanced flight deck displays, electrical power generation, cabin temperature control and pressurization were added to this particular model.  Additionally, improved Automatic Power Unit (APU), flap system, redesigned landing gears, and other systems were improved in this particular model.

#1: Gulfstream 650 (G650)

Quite possibly my favorite Gulfstream is that of the G650.  Sleek, shiny, and the largest of the Gulfstream family, this aircraft has the ability to take you just about anywhere.  True to the company’s tagline for this aircraft, “Farther faster, first of its kind,” the G650 more than lives up to its standard.

It has done just that with a maximum range of 7,000 miles (you read that right), and an operating speed of 0.925 Mach.  It also has the heaviest takeoff weight at almost 100,000 pounds (that’s a lot of golf clubs, or fuel).

Besides the G650 being visually stunning, the wingspan is the most noticeable at approximately 100 feet which is nearly as long as the aircraft itself.  It also features the most advanced avionics developed by Gulfstream – the PlaneView™ II flight deck.  Like the G550, it has four displays with the EVS, HUD, Synthetic Vision as well as fly-by-wire technology which is computer-controlled and highly redundant – this is advanced as the technology gets.

A Clear Winner?

While Globair.com has their favorite picks which have proven to be popular among used aircraft owners, be sure to do your research when it comes picking the business jet that works for your company.  Remember to read our tips about purchasing an aircraft – while focused on single-engine aircraft, there are some excellent tips to consider.  However, you might want to consider going to a jet broker when it comes to your business needs.

Hopefully you now have a better idea of the common business aircraft on the market – just remember to save your pennies as these sleek, used aircraft run anywhere from $6.4 to $52.9 million!

 

Searching for your next private jet? Click here to visit Globalair.com’s listings. 

 

 

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Aircraft Sales | Aviation Technology | Flying | GlobalAir.com | Aircraft For Sale | Lydia Wiff | NBAA

2017 Thoughts - No Recovery Quite Yet?

by David Wyndham 8. December 2016 14:51
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I recently returned from the excellent Corporate Jet Investor CJI-Miami conference. The two-day conference was attend by over 200 financiers, brokers, lawyers, manufacturers, appraisers, consultants and others involved in the transactions of buying and selling corporate aircraft. This includes helicopters, too (see footnote) . There were individual speakers and panel discussions. And way too much good food. Congrats to the CJI team for putting on a great event. Much of the discussion centered around the state of aircraft sales, residual values, and when the "recovery" is coming and where. Here are some things that stood out for me.

Flying is still down. There were three sets of data points supporting this. Jet Support Services (JSSI) has their Business Aviation Index built from the utilization of about 2,000 aircraft flown by their program customers. For third quarter 2016 (2016Q3) flight activity was up 1.4% versus 2015Q3. Sounds good until you see the number, about 29 hours per month, is only 84% of the overall peak utilization. Separating out Part 91 operations showed utilization of 22.5 hours per month - only 270 hours per year. That is not high utilization for the business jet fleet. 

Wingx, using FAA data, was not promising either. They show an average of 101 hours per year for all light jets and 159 annual hours for heavy jets. Not sure how accurate the FAA data is, but trends are trends and they are well off peak levels. Promising is that turboprop and light jet activity is on the rise. 

JetNet's JetNetIQ report also showed increasing aircraft fleet cycles. But total fleet cycles flown this year are only at about 2003 levels even though we have 50% more aircraft in 2016 versus 2003. So we have more business aircraft flying fewer hours and cycles versus peak periods. But flying is slowly increasing. The utilization trend is positive.

Aircraft sales, new or pre-owned, are still flat and pre-owned values overall show no signs of recovering. Several commentators blamed an over supply of business aircraft and buyers in general just not being all that interested in acquiring aircraft.  A couple brokers did note increasing sales activity in turboprops and light jets here in the US. 

Here is a tidbit I got from looking at AMSTAT's data. For business jets globally, about 25% of the fleet, 4,140 jets, is aged over 25 years. Heavy jets are the youngest fleet with only 17% of their number aged over 25. For midsize jets, 24% and for light jets, 33% of the fleet are aged 25 years or older. On the surface, I'd say the time is ripe for those older jet owners to upgrade. Why aren't they doing so in big numbers? 

Data that we see at Conklin & de Decker suggest that as aircraft age, they require increased maintenance to maintain their reliability. This increased maintenance is in dollars and downtime.  As aircraft age, the increase in unscheduled maintenance associated with scheduled inspections also requires a great deal more maintenance down time. Similarly it will take more and more maintenance to achieve any kind of acceptable dispatch reliability. Both detract from the availability of the aircraft for flight operations. Data shows that availability drops from the 95% range for aircraft up to 15 to 20 years of age to an average of 70% at age 25 and 55% at age 30. 

    Aircraft Age        Availability

      0 – 20 years up to 95%

      25 years up to 70%

      30 years up to 55%

By age 30, many aircraft are spending as much time in the shop as being available to fly. Normally this is a big problem and justification enough to acquire younger, more productive, aircraft. But if utilization is low, then maybe this is not such a big deal. The JSSI data are for aircraft under their guaranteed hourly engine maintenance plans. This aircraft are likely to be newer models. Even so, 270 annual hours for a Part 91 business aircraft is not a lot of flying. The Wingsx analysis of the FAA data showing 100-160 annual hours also shows there is plenty of downtime left in the year for scheduled maintenance while meeting g the required flight schedule. 

If operators with these older aircraft are able to meet the flying schedule and they realize the residual value of their aircraft is likely close to spare parts' values, maybe they see little need right now to upgrade. What about FAA NextGen? ADS-B is due by 2020, but for many of these older aircraft with analog equipment, the upgrade may only require a new transponder. If they cannot upgrade, then they might as well fly them until December 31, 2019 and park them. If this is the case for these operators, they may see little benefit to upgrading for another year or two.  

Overall, the general mood at CJI was that things are very slowly improving. But pay close attention to the US. Europe is moribund for business aircraft. As long as oil prices stay low, along with political instability in the Middle East, sales activity there will be slow. Same for Africa.  China and India, although they have the highest rates of GDP growth globally, are growing more slowly than in the past and account for a very small percentage of business aircraft sales. Mexico? Trump, NAFTA, and other trade worries impact there. Brazil's economy isn't promising right now, but Argentina, small a market as they are, is promising. Oceana, another small market for aircraft, is stable. The US has the globe's largest business aircraft fleet. The US, with a pro-business president and Congress combined with the current economic growth that's already underway offers the best hope for the next few years' aircraft sales. 

Personally, I think as 2020 approaches, we will see an uptick in aircraft sales for those aircraft with the ADS-B mods already installed. As supply of these aircraft may be limited, that may help with new aircraft sales.  But given the supply of pre-owned aircraft, that uptick might not be noticeable for another year, or 2018. Food for thought (as if after both Thanksgiving and the CJI buffets I have any room left). 

 

Footnote 1. Most of the helicopter manufacturers are highly dependent on large multi-turbine helicopter sales. Most of those are in oil & gas.  The CJI panel offered little hope for sales unless the price of oil goes up further. However, a recent energy find in West Texas combined the shale oil recovery and fracking technologies getting cheaper point to more land-based oil exploration. Stay tuned.

 

 

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Aircraft Sales | Aviation Technology | David Wyndham | Flying | NBAA | News

Recurring Thoughts

by David Wyndham 16. November 2016 11:33
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I have done some reflection on the past year. This was fueled by several conversations and sessions during the recent NBAA convention in Orlando. It has been supported by some of the consulting work I've done this year as well. I come to several recurring themes. I think all combined, they can help business aviation tell, and sell, our story.

Learn the language of business.We need to understand the languages of business as well as aviation.  Acronyms and jargon shorten the conversation for "insiders" but serve to confuse and exclude those not in the group. Aviation leaders  need to be bilingual in understanding the language and needs of aviation and business. An example of this is building the case to replace your aircraft. You need to explain the value of the new aircraft to the business in terms of being more effective and safe at accomplishing the mission. You better brush up on Net Present Value when talking to the CFO about the costs, too.

Run the aviation department like a business.The business aircraft adds value to the effectiveness of those who fly on it.  Your customers are the passengers and the product is the transportation. You are responsible to the shareholders (CEO, Board, etc). You know you need to develop a budget.  Use it like a "profit & loss."  The profit is the increased effectiveness and flexibility the aircraft provides. Take care of your people and look for ways to do a better job with the assets at your disposal. Develop meaningful metrics that tie into the effectiveness and efficiency of using the aircraft. Track and report them.

First, define and agree on the assumptions.This is for both developing a budget and for discussing options for the aviation department. Before you submit your budget, first have the discussion with the users and financial team about what they expect. If the users need 700 flight hours and expect simultaneous aircraft available one or two days per week, then get that agreement up front. Then you can provide the budget necessary to accomplish that mission. You can't do that with one aircraft and two pilots. If your flying is increasing, then it is reasonable to expect that your budget will, too. If the priority is that your budget must be reduced by 15%, then users need to understand how that affects your ability to deliver. If your budget is based on $3.50 per gallon fuel, what happens if fuel costs go up next year? This works for the mission as well.  If we agree that non-stop range with four passengers must be 2,300 NM, that will set up a set of requirements for the aircraft specifications. By agreeing on the assumptions, the discussion then becomes what resources are necessary to meet the obligations.

Use data, not opinions.If you need additional staffing, it can't be based on a feeling.  Likewise, justifying replacing your current aircraft needs to be supported by data. Gather your facts and be prepared to develop and explain the logic used.   If your assumptions are agreed to up front, and your recommendation is fact-based, then the discussion can be handled with reason.  When I consult with individuals and companies about their aircraft, I keep everything fact based. The  person signing the check can use emotion in the aircraft decision, but not me.

Listen actively.

Active listening is a communication technique that requires that the listener fully concentrate, understand, respond and then remember what is being said.  Two tips for you. Remember what mom said, "Look at me when I'm talking to you." Mom was right. No checking your email or multitasking of any kind. It does not work. Maintaining eye contact in a conversation tells the other person that they are important as well as is what they have to say. The second tip is to suspend judgment while you listen. Many of us start  forming our reply while the other person is talking. Talk the time to concentrate on what is being said and how the person is saying it. So often we jump to the conclusion before someone is finished talking and miss their point entirely. Think of listening like a checklist, you take each step in order and confirm that it was accomplished. 

Business aircraft are productive and efficient tools. Their main value is in enabling the face to face communication we humans need in order to understand and be understood. All the above can help us be better in justifying, selling, and communicating the value aircraft add to a business. 

 

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Aviation Technology | David Wyndham | Flight Department

I Toured the UPS Worldport and it Changed my Life

by Tori Williams 1. May 2016 18:53
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One of the major perks of attending the only flight university in Kentucky is that we have a great relationship with UPS. Seeing as their worldwide air hub is located about an hour and a half down the road, it only makes sense that a partnership was created and has been growing for several years now.

I consider myself a Kentucky girl and anyone from here knows what a huge deal UPS is for our state. Most of the pilots who are training at EKU that are originally from Kentucky started their piloting education because UPS inspired them. It is hard to miss a giant Airbus, MD-11, or Boeing 747 flying through the air on any given day in UPS livery.

They allow a group of students from EKU Aviation to come tour once a year. Getting into the Worldport was a big deal. We each had to provide personal information so that they knew exactly who was on the premises at what time. Our tour began at 10:00 PM on a Friday night and lasted until 3:00 AM because they wanted us to be there during their “rush hour,” so we could see everything in action.

We met our point of contact and tour guide in the parking lot and he ushered us into the building that was clearly designed for touring groups. Large dramatic photos depicting their fleet and operations hung from the walls and a screen showed a live feed of where all of their planes were currently positioned. The first impression that this place gives off is awe-inspiring. We all checked in and filed into the next room where they had models of all of their aircraft types. Our guide gave us a quick overview of the planes and their capacities. Our group knew a little bit more about airplanes than a typical group would so he told us some mechanical facts too.

You could tell that the people who were in charge of public relations were the best of the best. They were courteous, friendly, professional, and seemed to really love their jobs. Their enthusiasm for sharing the UPS Worldport with us was amazing and they continually encouraged us to someday join their company as pilots or employees in another capacity. This was a huge deal for most everyone on the tour, who has an end-goal of flying for UPS.

They showed us a video presentation about their production capacity and it literally gave me chills. They have the capacity to process 416,000 packages per hour, and process an average of 1.6 million packages a day. They turn over approximately 130 aircraft daily, and they keep 2.5 million gallons of fuel on site. During their peak season they will use all of that fuel during one 4-hour period. These are just a few of the quick facts that they presented on the video.

After the video we split the group in half, and one half went to tour the Worldport while the other half went to fly the simulators. I ended up being in the group that did the simulators first, and it was one of the most amazing experiences I have had in aviation yet. They took us to the training building and we got to fly in the Airbus A300. All five of us fit comfortably in the simulator because it was as large as a room. There was the part for the pilot and co-pilot, a large chair with controls on it for the simulator operator, and two jump seats in the back for observers.

The simulator was full motion so everyone could feel every control input. I flew in the captain seat first and he guided me on how to takeoff, fly to some headings and eventually fly an ILS down to the runway. It was so amazing applying everything I have learned from my training thus far to try to understand the complex systems of the A300. Just as my experience from flying a RJ simulator a few years back taught me, using the trim was extremely helpful and necessary for flying this beast.

After we flew in the simulators the instructors offered to write the time in our logbooks. I am so happy to say that I now have actual simulator time logged flying the A300! We thanked our instructors and headed off to the maintenance hangar. They had the 747 and an A300 sitting in this maintenance hangar that appeared to go on forever. We did a walk around of the A300 and they pointed out a few interesting features. The one that fascinated me the most was the large red dot that was located under the tail. Our guide told us that during the preflight inspection, pilots look to see if any of the paint on this red dot was scraped off. If it was, the previous flight had a tail strike!

From here we went out to the actual ramp and road around in a tour bus to see different phases of the operation. With a steady stream of flights coming in as our background, we saw employees unloading the giant containers of packages and transporting them to the package sorting area. They stopped the tour bus where we had a perfect view of the active runway. UPS planes were landing every two minutes, touching down only a few yards away from where we were. It was so fast and high-energy that we could not help but stare in awe for as long as they would let us stay.

Our tour of this side of the Worlport ended with us walking around the package sorting area. This particular part of the premises has been on television specials such as Modern Marvels, Ultimate Factories, and many more to showcase how it is the number one most efficient factory of its type in the world. I could write an entire article just about this place. It boasts over 100 miles of conveyer belts and takes up an area equal to more than 90 football fields. There was so much going on that it made my head spin. They have truly perfected the monumental task of sorting and tracking thousands of packages every minute.

We got back in our bus and headed to the Global Operation Center (GOC) across the road. This building contains offices for crew scheduling, flight dispatch, maintenance control, contingency functions, and their meteorology department. The operations here control every UPS flight worldwide. It was amazing how every department was situated in the same room, so that if something were to happen in flight dispatch that needed assistance from crew scheduling, they only had to walk a few feet away and talk to the person in charge of that department. Perhaps most importantly, they have an entire meteorology department located about 10 feet away from the flight dispatchers.

They gave us a briefing on each of the functions of the departments and allowed us into the main room after an intense security screening. The lights were very dim so that employees would keep their voices down and have an easier time focusing. There was no photography allowed at this point of the tour and it was a very serious environment. The safe and successful operation of their entire fleet was dependent on the people in this room so it gave us all a bit of a tense feeling.

Although it was almost 3:00 AM at this point, I was wide-awake from all of the amazing things I had seen during our tour. UPS is truly one of the most advanced and efficient companies in the world. I was continually blown away by their innovation and professionalism in all aspects of their operations. I hope that some day I am able to work for UPS, or any company of such high caliber. It truly changed the way that I see possibilities for the future and what a passionate group of hard workers are capable of achieving.

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Airlines | Aviation Technology | Airports | Tori Williams

Does your aircraft make "cents"?

by David Wyndham 1. February 2016 12:14
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It used to be that the choice of what business aircraft to acquire was a decision made by the CEO and the Chief Pilot. The boss said "I want this aircraft" and the pilot either got it or tried to dissuade the boss for reasons of speed, cabin or range. Today, opportunities to use business aircraft are sufficient only if the numbers make sense, and make "cents."

Some years ago I did a study for a manufacturer who was expanding from the Americas into Asia, particularly China.  They already had a larger-cabin business jet, but the senior leaders were considering a much larger airplane with global range to better meet their expanded travel needs. The CEO and Senior VP were clear on what they needed—the  ability to go global.

The CFO was just as clear on what he needed—financial justification. There was no way would he stand for a what he called "A Royal Barge."  In other words,  the aircraft had to earn its keep, or he would recommend the board veto it. This is exactly why you hire a CFO. It is their job to make sure every dollar gets spent wisely.  Our goal then was to recommend an aircraft upgrade that could handle the global travel of the CFO and SVP, both as flying-office and as restful-space, so that these rainmakers could do business right after landing. But since, the the CFO and board were not going to write a blank check, we needed the financial justification for the global jet.

Going from the corporate headquarters to to Asia was two-stops with the aircraft available at the time. One-stop to Asia was technically feasible but only if the weather was perfect and the headwinds were light. Our analyses identified two sets of aircraft.  A 4,100 NM range aircraft  could get them to or from Asia with one-stop 95% of the time. A 6,000 NM range gave them the desirable non-stop capability. Aircraft in these categories all have comfortable cabins with the latest navigation and communication systems. The seats could fully recline allowing for the executive to rest, if necessary. The galley could prepare the meals needed to fuel people for a 10 to 14-hour trip.  The financial differences that had to be addressed were:

 

  • Any new aircraft would cost more to acquire than the sunk investment in their current, smaller business jet.
  • Operating costs would go up with a bigger jet. However, given the newer aircraft's more fuel efficient engines and advanced systems, the cost jump was minimal.
  • Acquisition had to make sense financially.

 

We were able to show the added days in the office and the business jet’s more productive travel environment en-route were valuable to the company. The reduced travel time and more restful experience en route was seen as significant by the CFO. The saved travel days, the productive work environment on the business jet, and the secure work environment were good financial reasons for the new aircraft. Still, the question remained— do they obtain the 4,100 NM jet or the 6,000 NM jet? 

Looking at the Asia trips, we compared the added costs to acquire and operate the larger jet with its 6,100nm range with the cost of the fuel stops and added travel time of the 4,100 NM jet. We looked at the difference in the ownership costs - acquisition and residual value after 10 years in this case.  Based on the trip frequency, we arrived at a cost savings of about $600,000 per year by accepting the one-hour fuel stop needed with the 4,100 NM jet on Asian trips. The CFO was not sold on the 6,100 NM aircraft as adding that much more value. The flight department, CEO and Senior VP were satisfied with the 4,100 NM jet, which is the aircraft they purchased.

Given the frequency of their Asia trips, the 6,000 NM jet was not financially justifiable.  Operationally, the flight department favored the shorter stage lengths with a break, even with the added crew member.  For this company, the numbers made send for the 4,100 NM jet. For another company with higher trip frequencies or greater passenger loads, the 6,000 NM jet would make better sense. In all cases, you have to look at the costs and the benefits to do what makes "cents" financially within the parameters of the mission requirements. 

 

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Aviation Technology | David Wyndham



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