In the last edition of theJetWatch, we reviewed the Bombardier Challenger CL604 pre-owned market; this time we turn our attention to its natural competitor- the Dassault Falcon 2000.
Our takeaway from the CL604 market: there is fairly good demand for sub $10M wide body, middle-aged aircraft. Metrics in the Falcon 2000 market tend to show the same thing. There are currently 16 aircraft for sale (6.9% of the fleet), with an average market exposure of 284 days. However, this reflects a recent run-up in inventory with 6 of these aircraft having been introduced to the market within the past 90 days.
Only 3 sales have occurred within the past 6 months but this may be a partial reflection of lower inventory levels, especially for “prime” aircraft, during the second half of 2015.
In terms of demographics, 9 of the 16 aircraft for sale are US registered. 2 are fairly high-time NetJets aircraft (one US and one European), which continue to trickle out as they wind down their Falcon 2000 fleet. 9 have the more popular 10-passenger interior. 2 aircraft are fitted with Aviation Partners Blended Winglets.
We expect the majority of buyers will be targeting US Registered, 10-passenger aircraft as a first choice, of which there are currently 5 on the market.
The one downside to this model: Really expensive hourly engine maintenance programs. This offsets most of the fuel burn advantage the aircraft enjoys relative to its peers.
However, that’s kind of rounding error in the overall scheme of things. With an average asking price of $6.25M and average age of just over 15 years, the Falcon 2000 offers a great cabin, coast-to-coast range and a good deal of remaining service life.
If you have questions about the Falcon 2000 market, please give Cass or Jeff a call at +1 212 888 7979 or send us an email here.