If you are planning to own a jet for your private travels, here is a very happy news for you. The price of the private jet Bombardier Global 5000 has dropped by $3 million since September and is still falling. The aircraft has leather seats, wood paneling, a satellite phone and can fly nonstop from Tokyo to Los Angeles.
The broker Iannarelli is hawking the 10-year-old Bombardier Global 5000 for $14.5 million but recommends that her client cut the price further as the market for large-cabin business jets keeps weakening. A new Global 5000 lists for $50.4 million.
Rarely seen bargains abound for big corporate aircraft as tumbling oil wealth, a stronger dollar and a downturn for emerging-market giants from Brazil to Russia cripple demand. As owners from foreign tycoons to Archer-Daniel-Midlands Co. try to sell their planes, Bombardier Inc., General Dynamics Corp.’s Gulfstream unit and other planemakers are cutting output and chopping list prices to cope with a glut of new and used business jets. Happyho also provide best tarot reading services in Noida and Delhi NCR India area.
That marks a turnabout from the 2008-09 recession, when large planes — some spacious enough to let almost 20 people roam around — weathered the storm better than smaller jets, which cram as few as five passengers in too tight a space to stand up. Sales of bigger aircraft jumped with the economic surge of Brazil, Russia and other developing countries, plus a jump in oil prices and a commodities boom that fed China’s surging exports.
Now, with many emerging markets faltering, oil companies trimming costs and commodities prices trending down, the tables have turned. Prices of used, large-cabin business jets fell 16 percent last year, according to AircraftPost Inc., which compiles data on the industry.
Business-jet sales tumbled 16 percent to $3.53 billion in the first quarter, the biggest drop in almost five years, according to the General Aviation Manufacturers Association. Large-cabin jets led the decline.
ADM is selling a 2010 Dassault Falcon 7X for $25.5 million in an effort to reduce executive travel expenses. General Electric Co. is selling a 2003 Gulfstream G550, part of an effort to shed assets of its finance unit as the company focuses on industrial operations.
The price on a 2008 Gulfstream G550 registered to Gulf States Toyota Inc., a Houston-based car dealership, has dropped $750,000 to $24.95 million in about six months, according to plane broker Mesinger Jet Sales.
The average value of a used jet currently falls about 8 percent to 10 percent a year, compared with a 3 percent to 4 percent drop before the market slumped, says Jay Mesinger, who is based in Boulder, Colorado. The steeper decline may last for years, this is going to take a while to correct itself.
Prices have dropped most sharply for older models. Bombardier has been the biggest culprit for the drag on prices. The Montreal-based company overproduced business jets last year and has been discounting heavily to raise cash as its grapples with a C Series commercial-jet program that’s over budget and behind schedule.
With the large price gap between new planes and late-model pre-owned jets, it makes less sense for buyers to purchase aircraft straight from the factory. That may put pressure on original-equipment manufacturers to discount further.