Average market values for large-cabin business jets fell 6.5% in the 3rd Quarter of 2016, according to the first edition of theJetWatch Large Cabin Value Index (LCVI) Report.
The LCVI is a non-weighted index designed to track the average change in market values for large cabin business jets. Tracking began on July 1, 2016 at a value of 230,000. It stood at 215,053 as of October 1st.
Underlying values are derived through a proprietary algorithm, developed for theJetWatch by Intercontinental Aircraft Group LLC, in consultation with outside experts in data management and statistics. The algorithm analyses real-time data, in combination with historically established patterns and correlations, to estimate current market values. theJetwatch is tracking over 73,000 data points for almost 1,500 aircraft.
Broken down by model, quarterly declines ranged from a low of -.6% for the Gulfstream V to a high of -14.3% for the Gulfstream IV. Other models which exhibited above average decline in Q3 include the Bombardier Global 5000 at -7.3%; the Gulfstream IV-SP at -9.3%; and the Dassault Falcon 2000EX EASy (LX/LXS) and Falcon 2000 at -10.1% and -11.3% respectively.
The index is also broken down into six (6) sub-categories. The “Ultra Long Range, Contemporary” group consisting of the Global XRS/6000, Falcon 7X, Gulfstream 550 and Gulfstream 650 performed the best, losing an average of -4.5%. Conversely, the “Large, Out of Production” group was down -9.9%, on weakness in the Falcon 2000 market.
Broken down by OEM, Dassault products fared the worst with a -7.5% average decline, followed by Gulfstream at -6.5% and Bombardier at -5.6%.
For the full version of the Q3 2016 LCVI Report, please click here
About theJetWatch LCVI
The LCVI is formed by summing the average market values for each model-year of a specific aircraft type. A divisor was applied to weight each model equally as of July 1, 2016, at an index value of 10,000. Twenty-three different types were included which resulted in a total index value of 230,000.
Certain models have been excluded, such as non-purpose built business jets; models which were not in production as of 1990; and some sub-variants such as the Gulfstream 300/350 and 500; Falcon 2000DX, S and 900DX; etc.
About Intercontinental Aircraft Group LLC (IAG) and theJetWatch
IAG is a full service business jet transactional agency founded in 2012 by Jeff Habib and Cass Anderson, with headquarters in Manhattan and Silicon Valley. IAG assists clients with the acquisitions and disposition of business jets.
theJetWatch is the data warehouse and consulting branch of IAG. Primarily focused on producing real-time market values for IAG’s clients, theJetWatch also publishes a monthly newsletter covering business jet markets, economics and ownership strategies.