CEO-class private jets go begging for buyers, crushing prices
The private jet Janine Iannarelli is selling for a Russian client has leather seats, wood paneling, a satellite phone and can fly nonstop from Tokyo to Los Angeles. The price has dropped $3m since September and is still falling. Iannarelli today is hawking the 10-year-old Bombardier Global 5000 for $14.5m 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 $50.4m. "There's absolutely no evidence of a recovery on the horizon," says Iannarelli, founder of Houston-based aircraft brokerage Par Avion Ltd. "None of the jet models has hit bottom." 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 try to sell their planes, Bombardier, General Dynamics's Gulfstream unit and other planemakers are cutting output and chopping list prices to cope with a glut of new and used business jets. The slump extends even to the Gulfstream G650 -- just two years ago an aircraft so coveted by well-heeled buyers that some would pay $10m above list for a used jet rather than wait four years for a new model. Now there are 19 G650s for sale, about 11% of the global fleet in operation. One 2013 plane that first was posted for sale in June at $68m has had its asking price cut twice, to $58.8m.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-05-30/general/ceo-class-private-jets-go-begging-for-buyers-crushing-prices
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CEO-class private jets go begging for buyers, crushing prices
The private jet Janine Iannarelli is selling for a Russian client has leather seats, wood paneling, a satellite phone and can fly nonstop from Tokyo to Los Angeles. The price has dropped $3m since September and is still falling. Iannarelli today is hawking the 10-year-old Bombardier Global 5000 for $14.5m 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 $50.4m. "There's absolutely no evidence of a recovery on the horizon," says Iannarelli, founder of Houston-based aircraft brokerage Par Avion Ltd. "None of the jet models has hit bottom." 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 try to sell their planes, Bombardier, General Dynamics's Gulfstream unit and other planemakers are cutting output and chopping list prices to cope with a glut of new and used business jets. The slump extends even to the Gulfstream G650 -- just two years ago an aircraft so coveted by well-heeled buyers that some would pay $10m above list for a used jet rather than wait four years for a new model. Now there are 19 G650s for sale, about 11% of the global fleet in operation. One 2013 plane that first was posted for sale in June at $68m has had its asking price cut twice, to $58.8m.<br/>
