Bizjet Discounting Veil Lifted in Nigeria Order
The Nigerian government’s announcement last week that it is buying two Falcon 7Xs and one Gulfstream G550 for its presidential fleet has yielded a rare look at actual business aircraft discounts. Aircraft manufacturers are loath to reveal what deals they give to individual customers, but as a public entity, the Nigerian government had to disclose the aircraft purchase prices in its Fiscal Year 2010 budget. The expenditure item for the three aircraft is listed under the “intelligence community” budget and totals $155.5 million. The purchase price for the two Falcon 7Xs is $102.2 million–a discount of $2.9 million. One of the 7Xs is slated for delivery in the fourth quarter, suggesting the delivery slot could have been opened by a cancellation (Dassault Falcon declined comment). Gulfstream, meanwhile, gave the government an even heftier discount, shaving $5.4 million off the G550’s list price of $58.7 million for a second-quarter delivery next year. If this wasn’t a slot opened by cancellation of a previous order, it raises the question of whether demand for the new wide-cabin $64.5 million G650 is eroding G550 sales. Gulfstream, too, would not comment on the Nigerian order.