Some markets that have refused to pick up thus far, despite attractive pricing, might finally spark buyer interest this year. The Gulfstream II and GIII as well as the Challenger 600 may have felt all the pain they are going to. Some buyers have described the GII as a throwaway aircraft, meaning simply that if they buy one, they will do so with the intent of parking it once the engines have no more useful life. Some finance companies have thumbed their noses at the GII, barring the old battle-ax from their portfolio. No wonder prices have wandered into the sub-$2 million territory, and buyers with big-aircraft envy may view this as a great time to buy. Two years ago GIIs peaked at 61 for sale, and that number has slowly drifted to the current level of 47. This is the lowest level it has reached since peaking, and one it has held for the last few months, and represents 23 percent of the 189 GIIs in service.
The GIII, which visited a few more peaks and valleys than its predecessor as it departed its September 2002 high of 49 aircraft for sale, has unwound to 35 currently. That’s still a lot of GIIIs–17 percent of its active fleet, in fact–but a recovery from the 25 percent during the peak. This market, more so than that for the GII, could tighten further this year. Offerings from the mid-$4 million to $7 million range seem to offer good bang for the buck, and buyers may be awakening to this fact, especially those who remember this is half of what these airplanes were fetching five and six years ago.
