Bloomberg: The Glut of Private Jets Means ‘Insane’ Bargains for Buyers

Every time I even think of buying a jet, I pinch myself.

Purchase price is just the start...

CW

 

Yup. For me purchase would be a premier 1 or a mustang, but indeed, two engines, burning 160g an hour, inspections etc etc


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just talked one of my good friends out of a G4 ... $4m for the purchase had him all excited and the broker was telling him telling him about the pot of gold to be had by chartering it out. "fly private for free" was the main "selling point" ....

$1m a year if it never leaves the ground is what we told him....

 

"Glut of private jets" is a very broad term. There are a few types that the manufacturers can't build fast enough. The rest will be boat anchors. This article is addressing the boat anchors. Don't buy a boat anchor.

 

Some plane owners wish their plane had the maintenance needs of a boat anchor!



Matt

 

My buddy texted me a pic a few months ago of a G2 (maybe G3) that was left at a local airport in Maryland near him and it was sold for scrap. Some guy bought it for around $3,000 and he was going to take it back to his place (wings removed) and turn into a man cave. Not a bad idea...

 

The fall in used aircraft pricing has multiple factors.
- Tightened financing ability on aircraft older than 10 years
- The cockpit upgrade requirements. $80,000 to over $150,000 for ADS-B out just to be able to continue flying in North America. Expect that the outcome from this will be a lot of parted out older aircraft.
- Upgrade for North Atlantic operations that can require major cockpit replacements at $500,000+. Older avionics have no upgrade paths without complete replacements. Figure any large cabin jet is owned so it has the ability to make these flights.
- Uncertainty on what more cockpit mandates will be coming along that will create even more problems for older generation cockpits; to some degree there is concern that even current generation could have more problems.
- There was a bubble of order and production of new aircraft. Some of those were flipping positions.
-That the article is citing deep discounts on G450s as an indicator of a general market condition is wrong. 450s and 550s have announced end of production run dates. Of course they are heavily discounted to incentive taking the last of the line versus "latest and greatest". Absolutely nothing out of the ordinary, happens each time Gulfstream does a new replacement model.

 

The pot of gold for the charter is for everyone except the aircraft owner.

 

G2s are pretty much worth whatever the aluminum is worth, and the engines might have a bit of value... I would think that would be more than $3,000, but maybe if it wasn't easily transportable from where it was parked, it could go that low.

 

I found the old text and pic is attached (hopefully it is). He said it was a GII looking back at the text, which yeah is the cheapest/worthless one of the lot.

Not easily transportable as you can see...that pic was taken in the back roads of Maryland after he moved it off the airport tarmac.

 

^^And to add to that, I would now like to get a scrap G5 when/if they get that low and turn it into backyard mancave.

 

Can you find out the serial number? Want to determine if it is one that I worked on.

 

G5s still have life. Based upon a conversation at the NBAA last week, suspect that they will be an upcoming Nextant project.

 

That photo is from June my friend randomly took, but he is pilot for SWA and maybe he took another photo of the tail # for fun...I'll ask him. If not, I'll ask him what airport it was moved from and someone can contact them if they would like.

 

He said there was no tail # on it and likely deregistered a long time ago. He told me it was from Hagerstown Regional Airport and I found this article that matches it:

http://www.aero-news.net/index.cfm?do=main.textpost&id=458f5978-ec12-4e03-8732-45460f01fd4d

The one in the photo is N33PJ, but the livery is different from the photos of the one being transported and may just be a file photo of a GII as the credit at the bottom is wikipedia (that wiki page doesn't have that photo anymore if it ever was there).

Edit: Another photo https://www.fredericknewspost.com/news/politics_and_government/transportation/man-hauls-wingless-plane-on-interstates-from-hagerstown-airport-to/article_dc35d6cd-e741-5805-a0c7-50f9d29a6a3e.html

Edit #2: The engine cowlings and tail were reinstalled at a later day as my friend's photo is from June and the interstate photos are from December.

 

That should make it s/n 57 which is not one I was ever involved with.

 

I think I found actual tail # based on the airport and livery. N300RD. Supposely the third GII made per this photo description:

http://www.airliners.net/photo/Untitled/Grumman-G-1159-Gulfstream-II/1699484?qsp=eJwljUEKwzAQA/%2Bisy9ucKG%2BtR9oD/3AYi9pII3NegsNIX%2BP7dw0kpA2hLQo//W9ZoZHYZLwgUEmoW%2BB32rht6is8M46A%2BFxSgu8tYPBnAJpx8G6mzUoSfRRq4ikfA%2BBs3LE6T8lsrSIS%2BgHYzu8NMnyOmm4VoxTyTP1FVaaZuz7AfGkNZw%3D

Another shot:
http://www.airliners.net/photo/Untitled/Grumman-G-1159-Gulfstream-II/2091349?qsp=eJwljUEKwzAQA/%2Bisy9ucKG%2BtR9oD/3AYi9pII3NegsNIX%2BP7dw0kpA2hLQo//W9ZoZHYZLwgUEmoW%2BB32rht6is8M46A%2BFxSgu8tYPBnAJpx8G6mzUoSfRRq4ikfA%2BBs3LE6T8lsrSIS%2BgHYzu8NMnyOmm4VoxTyTP1FVaaZuz7AfGkNZw%3D

 

This is the last post I'll make on it. Here are photos of it now where it sits and some interior shots: http://rebrn.com/re/my-wife-told-me-that-a-neighbor-is-putting-a-jet-together-on-the-3202236/

 

More info on just about every GII...

http://geetwos.blogspot.com/search/label/N300RD

Was the demo aircraft for the Stage III Technologies hush kit for the GII. Lost out.
Stored at Hagerstown.

That's apparently it's third 'N' number.

 

Pretty sweet website. Not a bad deal to score the 3rd ever GII for only $3k and make it a mancave in the yard.

It appears the 1st ever GII was upgraded to have a glass panel cockpit...awesome! It was taken out later and the original put back in for the museum. http://www.rapp.org/archives/2013/10/first-gulfstream/

 

I've wondered why the G's had relatively long landing gear legs...

But did a search some time ago for the Grumman G I... and it needed them for prop/ground clearance. I think they used the same design gear/fuselage on the G II, etc. etc.

 

I think that's one of the things that make the Gulfstreams so nice looking compared to short and stubby legs like on the Challengers. Also similar to how it makes the Concorde look better than the Tu144 (imo) and 757 to the 727 and 737.

 

This thread reminded me of several YouTube videos I saw earlier this year. Here is the G2 being towed down the highway and into the guy's yard.

 

Nice videos! That reminded me of GII N945NA that was used as a shuttle trainer by NASA. I saw it fly over KSC for the STS-133 mission (this is a pic I took, but the tail # is better seen in another shot I have https://upload.wikimedia.org/wikipedia/commons/5/50/C11_Shuttle_.Trainer.JPG).

I saw it sit at the Birmingham Airport for years and it finally moved to Huntsville via semi-truck not too long ago. They chopped of the entire wing and landing gear portion and reattached it later: http://www.collectspace.com/ubb/Forum41/HTML/000608.html