Palm Beach Gardens, FL (PRWEB) June 29, 2012
What does this mean for Challenger 300 and 605 owners?
This deal will have a positive impact on CL300 and CL605 models in the pre-owned private jet market. The purchase will expose a large pool of affluent fractional private airplane owners to these particular private aircraft models, partial owners who might opt for total private ownership of a new or used Challenger private aircraft for sale in the future. Moreover the increased visibility these Challenger private airplanes will enjoy as part of the NetJets fleet will add to their luster in the vast field of private aircraft for sale. For many years Challengers have flown in the shadows of Gulfstream, and this will bring welcome attention to the brand. It is estimated that Bombardier provided significant discounts to NetJets especially in the current market environment but it is akin to the rental car business, where automakers provide attractive deals to rental companies to introduce new car models to potential buyers.
There is also a potential near term play for CL300 and CL605 owners. Despite its large number of aircraft, NetJets, like all fractional programs, needs supplemental lift during peak travel periods, and prefers to charter the same makes and model it operates in its fleet. NetJets has been known to guarantee operators, frequently about ten hours of flight time revenue for access to their aircraft during such times whether NetJets actually uses the aircraft or not. Interested owners of quality 300s and 605s on Part 135 charter certificates can discuss the possibility of providing overflow lift with their aircraft manager.
Looking ahead, Challenger 300 and 605 owners could consider that NetJets typically recycles its aircraft every five to seven years. Consider that situation as part of any aircraft lifecycle planning. Astute owners can be ahead of the tidal wave of NetJets Challengers hitting the pre-owned market when putting a private jet up for sale.
What does this mean for Cessna Latitude owners?
Probably that there will be more of them and that is a good omen for owners. This will create a deep pool and liquid market. Most buyers like to see a private aircraft in production before signing on to purchase or a large discount is expected for accepting a delivery position prior to certification (which is predicted to be in 2015 for the Latitude). The NetJets purchase is big vote of confidence that will likely influence other potential buyers and reduce the level of incentives Cessna needs to offer to entice other buyers.
Hawker Beechcraft and Gulfstream
As for those not invited to the party, this just rubs salt in the wounds of the battered and bankrupt Hawker Beechcraft, considering the close relationship the two companies once enjoyed. The last significant transaction between the two was when NetJets cancelled $2.6 billion worth of orders in December of 2009, representing 90 percent of its orders with Hawker Beechcraft and almost half the airframer’s order backlog at the time. Gulfstream, meanwhile, probably isn’t feeling particularly spurned. The company has a $17 billion backlog, and probably had little incentive to offer the level of discounts NetJets wanted especially having experienced large NetJets order cancellations firsthand in the wake of the 2008 financial collapse. And that’s just as well, because NetJets appears to be leaning toward Bombardier as a supplier, with the Canadian manufacturer offering a wider array of cabin sizes including its Learjet and Global lines than the fleet Gulfstream builds.
About Daniel Jennings, CEO of The Private Jet Company (TPJC):
Daniel Jennings is the Founder and CEO of The Private Jet Company, headquartered in Palm Beach Gardens, Florida. The team at The Private Jet Company are experienced professionals in private jet sales and acquisitions and work with clients worldwide on aircraft as diverse as Gulfstream G-550 to the Pilatus PC 12. The Private Jet Company has the market data and expertise to provide valuable market intelligence to our clients and negotiate the best aircraft transaction possible on their behalf. They focus on finding the right airplane to match the intended use, budget and operation, and work closely with the client, their tax advisors and attorneys to ensure the transaction is completed with the least amount of surprises. Please contact Mr. Jennings to discuss your aviation needs. He can be reached directly at 310-980-9069 or Dan@theprivatejetcompany.com.