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PRE-OWNED SPOTLIGHT<br />
TIME LINE<br />
YEAR OEM MODEL EV<strong>EN</strong>T<br />
1996<br />
1997<br />
1998<br />
1999<br />
2001<br />
2004<br />
2005<br />
2006<br />
2007<br />
2009<br />
2010<br />
2012<br />
2013<br />
2015<br />
2016<br />
Boeing<br />
Airbus<br />
Boeing<br />
Airbus<br />
Boeing<br />
Boeing<br />
Boeing<br />
Airbus<br />
Bombardier<br />
Airbus<br />
Embraer<br />
Boeing<br />
Airbus<br />
Embraer<br />
Bombardier<br />
Airbus<br />
Embraer<br />
Bombardier<br />
Airbus<br />
Boeing<br />
BBJ<br />
ACJ319<br />
BBJ<br />
ACJ319<br />
BBJ2<br />
BBJ2<br />
BBJ<br />
ACJ318<br />
Challenger 850<br />
ACJ318<br />
Lineage 1000<br />
BBJ<br />
ACJ318<br />
Lineage 1000<br />
Challenger 850<br />
ACJ318<br />
Lineage 1000E<br />
Challenger 850<br />
ACJ NEO<br />
BBJ MAX<br />
Boeing Business Jets was launched as a joint venture between Boeing and General Electric.<br />
Airbus joined the business jet market with the A319 Corporate Jet.<br />
First BBJ entered service.<br />
First ACJ319 entered service.<br />
In October, the BBJ2 was announced which has 25 percent more cabin space and twice the cargo<br />
space of the original BBJ.<br />
First BBJ2 entered service.<br />
In May, the BBJ became the first non-commercial aircraft to cross the North Atlantic using Future<br />
Air Navigation System (FANS) technology.<br />
Airbus introduced the ACJ318.<br />
Bombardier introduced the Challenger 850 and announced its first order.<br />
First Airbus ACJ318 entered service.<br />
Embraer launched the Lineage 1000 in May.<br />
In January, Boeing and Rockwell Collins announced the development of an Enhanced Vision<br />
System (EVS) for the BBJ.<br />
Airbus A318 approved for Heads Up Display.<br />
First Lineage 1000 entered into service.<br />
The first Challenger 850 was delivered to BAA Jet Management in March.<br />
Airbus introduced the ACJ318 Enhanced, with more cabin configurations and airframe<br />
enhancements.<br />
Embraer renamed the Lineage 1000 the Lineage 1000E.<br />
Challenger 850 production ceased.<br />
Airbus launched the ACJneo with its first order.<br />
BBJ MAX7 was unveiled in October, with a 7,000 nautical mile range, 10% lower operating costs<br />
and a longer cabin compared to the original BBJ.<br />
% OF AIRCRAFT FOR SALE SINCE SEPTEMBER 2016<br />
30%<br />
28%<br />
26%<br />
24%<br />
22%<br />
20%<br />
18%<br />
16%<br />
14%<br />
12%<br />
10%<br />
8%<br />
6%<br />
4%<br />
NUMBER OF AIRCRAFT FOR SALE SINCE SEPTEMBER 2016<br />
No. of Aircraft for Sale<br />
20<br />
18<br />
16<br />
14<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
0<br />
ACJ318 ACJ319 BBJ BBJ2<br />
US$46.5M delivered in 2008, today’s value would be US$34M; a 2.5-<br />
3% annual depreciation rate. This is much less than the average 6-9%<br />
annual rate for a conventional business jet.<br />
PROS & CONS<br />
ACJ318 ACJ319 BBJ BBJ2<br />
G550 Supply Level: 6-8%<br />
Challenger<br />
850<br />
Challenger<br />
850<br />
Lineage<br />
1000/E<br />
Lineage<br />
1000/E<br />
Because they are based off of commercial airliners with high annual<br />
utilizations, Corporate Airliners inherently have a robust airframe<br />
and system design allowing them to serve for longer periods, with<br />
fewer factory visits than conventional business jets. Also, Corporate<br />
Airliners are more spacious; a BBJ’s cabin volume is almost three<br />
times that of a G550 and consequently the interior can provide more<br />
flexibility for the buyer. These features along with a long list of others<br />
have successfully drawn the attention of top-tier business jet buyers<br />
and created a solid market demand for Corporate Airliners.<br />
While the Corporate Airliner market is undoubtedly popular for<br />
government entities and corporate users, the efficiency of these<br />
aircraft and their suitability for the demanding private user is often<br />
debated. A good example is with the avionics. Most business jets,<br />
including the Falcon 7X, Global 5500 and G550, have long offered<br />
Enhanced Vision System (EVS) with a Head-Up Display (HUD),<br />
improving pilot awareness in challenging conditions. Yet, these have<br />
only more recently found their way onto Corporate Airliners and even<br />
then merely as options with several Corporate Airliners only offering<br />
EVS as an upgrade while the baseline avionics typically remain from<br />
the last generation. Corporate Airliners also have a relatively slower<br />
cruising speed (around Mach 0.8) and a lower cruising altitude,<br />
ranging from 35,000ft to 39,000ft versus conventional business<br />
jets usually flying well above Mach 0.8 at 39,000ft. Thus, Corporate<br />
Airliners take a longer time to travel and typically can’t avoid<br />
challenging weather conditions like a conventional business jet. The<br />
cabin altitude in a Corporate Airliner is relatively higher too while in<br />
cruise. A BBJ’s cabin altitude is 6,500ft, while a G550 is slightly lower<br />
at 6,000ft, making a significant difference over long-haul flights, as<br />
passengers would feel more comfortable at a lower cabin altitude.<br />
Another major selling point for business jets is the reduced cabin<br />
noise they offer. In today’s conventional business jets, with the help<br />
of advanced insulation liners and the latest in acoustic treatment<br />
technology, they have virtually eliminated cabin noise by reducing it<br />
32 | ASIAN SKY QUARTERLY — THIRD QUARTER 2018
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